On Tuesday, Treasury Secretary Tim Geithner will announce President Obama´s and his administration´s plans to combat the nation´s current foreclosure crisis. So far, it is known that they want to allow between $50 and $100 billion for the plan, with direct emphasis on loan modification. Their plan is assumed to be a part of the $350 billion which remains from the financial industry recovery package. As for the announcement, many believe that it wont be a specific detailed outlining of their plan, but instead a general layout. Shaun Donovan, the Housing and Urban Development Secretary, had told CNN that the actual plan would be introduced in phases "in coming weeks." Senior vice president for government affairs with the Financial Services Roundtable, Scott Talbott, remarked that "It's been a real challenge,...To come up with a widespread approach is very difficult."

Right now there are several speculation as to what the plan will hold. Some believe that it will expand upon the Federal Deposit Insurance Corp.´s streamlined loan modification program, being currently used by Fannie Mae and Freddie Mac. The program works on making monthly payments more affordable by lowering interest rates, expanding loan terms, or holding on the principal. The Obama administration could support these types of modifications by providing incentives for servicers in case the borrower defaults again.

However, making loans more affordable does not resolve the issue of unemployed borrowers. With unemployment on the rise, more and more borrowers cannot make any payment, no matter how minimal. The only way to take care of this issue is to boost the economy and create/maintain jobs. Donovan also commented on this, saying "What is really driving the foreclosure crisis right now is that people are losing their jobs. And so job number one is to pass a recovery bill that will add three to four million jobs in this country,".

What is certain, is that action has to be taken soon. The Center for Responsible Lending reported that a new foreclosure is started every 13 seconds. Their spokeswoman, Kathleen Day, further elaborated, "Every minute they delay someone is going to lose their home,...The government has waited too long to act."