The Real Deal Miami

Stimulus could prevent foreclosures

February 12, 2009 02:43PM

President Barack Obama said that he wants $50 billion in stimulus funds to help prevent foreclosures. Telis Demos, a reporter at Fortune Magazine, said that by adding conditions to federal money, the government can force banks to start lending to homeowners and modify loans for people in foreclosure. Although Obama said that the economy fix won’t happen overnight, Fritz Walter of the Consortium for Worker’s Education in Queens said that if the government acts quickly and funds are given to the middle class, the foreclosure problem could be “wrapped up in a year.”