NEW YORK (CNNMoney.com) – A day after Treasury Secretary Tim Geithner said it would be a few weeks before he unveils a solution for the housing crisis, regulators and lawmakers pressed financial institutions to suspend foreclosures until the plan comes out.
Geithner, who laid out a broad overview of the Obama's administration's plan to attack the financial meltdown, said Tuesday that the federal government would commit $50 billion to preventing foreclosures by reducing monthly payments. Details would be forthcoming, he said.
Until that loan modification plan is released, foreclosures should be halted, some say.
"I would ask all of you now to please make sure that we have a moratorium in effect," Rep. Barney Frank, D-Mass., told top bank executives at a hearing Wednesday. "It would be until we get that program, and until you know if people can qualify. Having someone suffer foreclosure because two weeks hadn't gone by for this program would be unacceptable."
Unfortunately, MANY people who are foreclosing now bought homes they could not afford.
However, there are others who through no fault of their own are foreclosing and those SHOULD BE HELPED.
One way to help people is to FREEZE A.R.M.S. whose interest rates will go up, soon.
Another is to allow people to refinance on homes which have lost their value!
Get Geithner out of office, PLEASE!!!!!
He isn't helping and his reputation with the tax problem is just hurting the party's credibility. Doesn't the president see this?????????
Why is no one speaking about the 10,000 lb gorilla in the room, THE INTEREST STRUCTURE???? Why should a $100,000 cost $300,000 over the life of the mortgage???? What is wrong with this picture????
This needs to be done!
Well 50 billions dollars doesn't sound like enough. The housing crisis is the root of this economic turmoil. Foreclosures need to be halted!
Hells bells, what good is a foreclosure fix, if we haven't fixed the ridiculous laws and policies that led to this mess in the first place?
No need for a foreclosure fix if Congress is not willing to repeal the 1977 Community Reinvestment Act. Lending institutions should never have a government gun held to their heads, legally mandating banks engage in fiscally-unsound mortgage lending.
"Fair lending standards" are not fair to those who are left to pick up the tab after millions and millions of unqualified borrowers default on loans they should never have been given in the first place.
Your story doesn't mention the fact that the lawmakers laughed at and mocked the administration when they delivered an update to them yesterday.
So the very people who approved the nominiation of the tax cheat Geithner because he was supposedly the only man for the job, now openly mock the man they approved just a few days ago.
Does anyone hear the same circus music that I hear?
What makes ANYONE think this bozo is going to have a plan anytime soon? It took him YEARS to figure out his own tax problems!
Time to step down, tax-cheater!! Do the right thing like Tom Daschle did and go away.
Now this is an idea that might work.. How about someone actually try and save the people and not the banks?
This money is headed straight to Swiss bank accounts.
Instead of giving money to the banks, I think the government should give each person $1,000 dollars a month for six months for housing. This way everyone can choose to refinance their homes or not, and others would have money for rent. This helps to take in account for rising utilities and property tax costs.
"One way to help people is to FREEZE A.R.M.S. whose interest rates will go up, soon. "
No, because most of the people who have an ARM are the irresponsible ones who couldn't afford the home they bought in the first place and helped us get into this mess. Let's only help the responsible people who because of circumstance (like a job loss) are now having financial difficulties.
WHY is Barney Frank NOT in jail or being investigated for causing the largest financial meltdown in world history?
People, the only fix is to let THE FREE MARKET DEAL WITH THE PROBLEM! Let the banks that made the bad lones fail, and let the morons that took the loans they couldn't afford get kicked out in the street. That's how it's supposed to work. PROBLEM FIXED!!
COMEON OBAMA FANS LETS GET THIS 2 TRILLION DOLLAR BAILOUT DONE TO!!!!!!!
IF WE ARE GOING DOWN WE MIGHT AS WELL GO ALL OUT!!!!!!!!!
As long as we keep giving all this money to the banks, they will keep holding their meetings at such places as Venetian Las Vegas, BAD IDEA!
Where is PUMA when you need them?