MESA  President Obama unveiled a multipoint plan here Wednesday designed to keep families in financial trouble in their homes.

President Barack Obama outlines his plans to salvage the housing industry Wednesday at a speech at Dobson High School in Mesa. (Capitol Media Services photo by Howard Fischer)

The $75 billion package, detailed in a speech at Dobson High School, would allow between 4 and 5 million whose mortgages are held by one of two governmentchartered institutions to refinance at a lower rate; create incentives so that private lenders work with borrowers who have "subprime'' mortgages to lower their monthly payments, a move Obama said would help 3 to 4 million homeowners;  use $200 billion existing funds from last year's bailout to purchase home mortgages to stabilize overall interest rates;  allow bankruptcy judges to reduce the amount owed on homes to the actual value rather than a higher amount owed.

"We will help between 7 and 9 million families restructure or refinance their mortgages so they can avoid foreclosure,'' the president said.

The plan drew immediate derision from Gov. Jan Brewer who said she does not like the idea of using taxpayer money to help people in foreclosures.

She said any time the government steps in it would "create another problem.'' The real solution, Brewer said, is more jobs.

Brewer said she does not believe the stimulus package Obama signed Tuesday will do much to actually put more people to work.

In his speech, Obama stressed that the plan, much of which he said can be implemented without congressional action, will have effects beyond those facing loss of their homes.

"We're preventing neighbors from being pulled over that edge, too, as defaults and foreclosures contribute to sinking home values and failing local businesses and lost jobs,'' he said.

"By bringing down the foreclosure rate, it will help shore up housing prices for everybody,'' the president explained. He said foreclosures drag down the value of nearby homes by up to $6,000.

He said the refinancing provision will help those who are "underwater,'' in homes where they owe more than the house is worth.

"These families are unable to sell their homes, but they're also unable to refinance them,'' he. "So, in the event of a job loss or other emergency, their options are limited.''

The incentive provision is aimed at homeowners whose mortgage payments now exceed 38 percent of their income.

Under that plan, the lender would be required to restructure the terms to get that figure down to 38 percent. White House officials said that could be by lowering interest, reducing the principal or extending the term of the note.

At that point, the government would provide a dollarfordollar match to the lenders to get those payments down to 31 percent.

Obama said that will cost taxpayer funds up front. But the tradeoff, he said, is saving "the costs of foreclosure tomorrow'' that are borne not just by homeowners but by neighbors, the community and the economy.

The president said the plan will not stop all foreclosures. In some cases, he said, they don't deserve the help.

"It will not rescue the unscrupulous or irresponsible by throwing good taxpayer money after bad loans,'' he said.

"It will not help speculators who took risky bets on a rising market and bought homes not to live in but to sell,'' Obama continued. And he said that "dishonest lenders who acted irresponsibly'' will be precluded from taking part in any relief.

But the plan also presumes that some people are beyond help: Shaun Donovan, secretary of Housing and Urban Development, said the rules which will be detailed in two weeks will preclude aid for those whose mortgage balances are more than 150 percent of the value of their homes.

Also locked out, Obama said are "folks who bought homes they knew from the beginning they would never be able to afford.''