Beumer Foreclosures/Short Sales

President Barack Obama's Foreclosure Plan has been designed to assist with mortgage help but getting the balance right will be tricky. Mr. Obama's plan is, at the very least, a start. The subprime crisis and foreclosure glut have been leading causes of the current economic dive.

The centerpiece of President Obama's Foreclosure Plan is a $75 billion investment -- drawn from the financial industry bailout money approved by Congress -- that would go directly to keeping homeowners in their houses. A portion would allow those without enough equity to refinance, affecting as many as 5 million people. An owner would be eligible provided his or her mortgage does not exceed 105 percent of current property value. Currently, one in four people nationally is underwater on a mortgage, meaning they owe more than their house is worth, the result of plummeting home values.

A second component, affecting about 4 million people on the verge of foreclosure, would provide incentives to banks to alter the terms of loans to make them more affordable. The goal would be to reduce monthly mortgage payments to 31 percent of a homeowner's income.

The last piece of the package would seek to increase credit available for loans by giving $200 billion more to Fannie Mae and Freddie Mac.  However, many people will end up losing their homes to foreclosure.  To search for current Pensacola foreclosed homes, register here.  You will receive updates of new foreclosures coming to the market that fit your criteria.