by Laura Conaway

I'm reading through the Obama administration's new foreclosure plan. In addition to the word "responsible" showing up a lot, I'm seeing hints of political strategy — like this one:

"The Home Affordable Modification program has a simple goal: reduce the amount homeowners owe per month to sustainable levels to stabilize communities."

The boldface there is mine. The Treasury Department says a single foreclosure pushes nearby home values down by as much 9 percent.

 

So far, much of the conversation on Planet Money has been about whether homeowners who owe more than their houses are currently worth — the 20 percent of families thought to be underwater — can be enticed to stay in their homes, even with lower monthly payments.

I wouldn't expect any given person with an outsize mortgage to be persuaded to stay put, just for the good of the neighbors. But I do think it's interesting to watch President Obama sell the plan to America that way. He's got two jobs: Get the homeowners to stay, and get the public to support his approach.