NEW YORK (CNNMoney.com) - President Obama unveiled a $75 billion multi-pronged plan Wednesday that seeks to help up to 9 million borrowers suffering from falling home prices and unaffordable monthly payments.
Watch: Obama unveils housing plan
The long-awaited foreclosure fix marks a sharp departure from the Bush administration, which relied mainly on having servicers voluntarily modify troubled mortgages.
Obama, on the other hand, will make it easier homeowners to afford their monthly payments either by refinancing the mortgages or having their loans modified. The president is vastly broadening the scope of the government rescue by focusing on homeowners who are still current in their payments but at risk of default. And he puts billions of federal funds into enticing servicers to modify the loans of those who've already stopped paying.
Updated 12:58 p.m.
Good. He's a man with a plan. Less that 1 month and he's already provided a solution for the economy and for homeowners. Even if he's wrong, you gotta give him credit for doing things quickly
As a tax paying citizen for all these years I wonder if I will get a thank you card from the 9 million people who purchased a house they could not afford.
I think they should use a full 100 billion to fix theis problem. and i don't even think that's enough. But at least the matter is being addressed. This is the root of the problem. If we can keep people in their homes, I believe we will start to see a change in the economy.
Gee, maybe if I stop paying my mortgage on time and in full, I can get some of this money too.
Short Article that does not explain how those of us that have kept our Mortgages Current will suffer for this!
Wake up America this Left Wing Nut Job wearing Training Pants is destroying our once great nation right before our eyes!
obama is so lost on what this country needs right now. obama the carter of this time needs to listen to people that are not part of the(48%) that don,t work that just wants more government money please liston to the other (52%).
"Wide-ranging plan to buffer against falling home prices and high-cost mortgages. Will use government money to subsidize rates and INSURE SERVICERS AGAINST DEFAULT."
Isn't that what sunk AIG?
I knew I couldn't afford to buy, with taxes, maintenance, and all, so I rent. And the rent gets raised on a regular basis.
When will someone help the people that REALLY did nothing wrong? Or is it only greedy scumbags that get bailed out?
Let's see – The Dow tanked when Geithner announced his new TARP and tanked again yesterday when the Simulus was signed. Do we need anymore help from Sen Obama?
are you kidding me? we're helping out people who bought houses that they couldn't afford?????? what about the people who have been responsible and paid off their mortgages because they bought houses they could afford??? WOW what has our country come to?? Wasting more tax dollars to bail out homeowners who made bad decisions and bought things they couldn't afford. How many more bailouts are still going to come??? I guess responsibility and saving are 2 words we don't need anymore if the government will always keep stepping in.
"In the end, all of us are paying a price for this home mortgage crisis," Obama was expected to say in a speech Wednesday
How do they know what he is expected to say?
My concern with any mortgage bailout is who determines the criteria for who gets helped? If someone knowingly purchased a house they couldn't afford, do they get help? Essentially, they're being rewarded for their irresponsibility.
I am going to let my payments lapse so I can get in on this–Thanks Mr Obama.
What good will do to all those that have lose their homes already. I all for Pres. Obama but this housing problem is such a huge mess I don't know this will help. For those that are stuck renting because we knew that prices were so high and now we can't because are salaries have been reduce and are left paying high rents. What are they going to do for us. Rents have gone from $1,000 to $2,000 in less than five years.
Owning a home is the american dream you say. I am paying for a home that i have worked hard for. I have never been late with a payment. I say the new dream is to buy a huge home that you can't afford and wait for the government to step in and make sure you don't default, while i bust my butt every day to pay for my home. Thanks Barney Franks and all the fine socialist supporters.
Finally, help is on the way.
A simple fixed interest rate should solve the problem, and if it dosen't then the people bought way over their heads and will never be able to afford the home they're in.
I am so angry that the mortgage industry caused the mess our country is in.
Survival of the Fittest should be in place right now.
This sounds like a good plan. I wish we had placed more emphasis on this than the stimulus bill.
Help!! I stopped making my payment last, err.., next month.
What is in the bailout for Americans who save, budget properly, and pay their bills on time? They get to pay for the bailout of Americans who did not save, did not budget, and don't pay their bills.
Tax payers are the aid President Obama; NOT YOU personally!!! You should re-think that poor thought and reconsider that tyep of action, when infact there are so many insividual and familys not in a hous; Be responsable.
Please rethink your aid of the mortgeges!
One aspect of financing that is always overlooked and desperately needs regulation is the credit card industry. The governemnt needs to legislate it illegal for anyone charging more than 5% above bank prime on any loans as right now credit card companies are loan sharking and bankrupting people needing this type of credit to get by on a daily basis.
Anyone expecting their mortgage to be paid in full with this plan will be disappointed. This plan will allow you to reside in your home while paying off what you borrowed over a longer period of time. So you're still on the hook. As someone who pays their bills on time and lives within their means I hope this plan does not change.
Thank you mr. President
Cue GOP saying there isn't enough money and that the only way to do this is to give the mortgage companies tax breaks...in 3...2...1...
don't you mean "departure"?