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.
@ Danny in Chicago ...
Possibly you should try NOT living in a city. I have lived in a city and was lucky enough to escape. Allows you to think much more clearly.
There are way too many doofusses, such as yourself, in the city.
On second thought..... please continue living in the city. We don't wnat you out here.
Hope you all saw that Obama had his gun control views pushed into this 'stimulus" bill. It was done oh so quietly since he tried to make everyone think that he was ok with it while on the campaign trail. So now he has paved the way for the registering of all guns and no private sales so they can come confiscate in the future.
EVERYONE CAN STOP PAYING YOUR MORTGAGE NOW,,,HELP IS ON THE WAY,,HOORAY FOR SOCIALISM......NEXT COMMUNISM...
Where's mine? Sounds like getting paid for being stupid or greedy.
I keep seeing comments on here about how republicans are criminals, only out for the rich, responsible for everything wrong, etc., etc., etc. and everything Obama does is magical, intelligent, etc.
Does it bother you to be that stupid or does your stupidity make you happy because you don't understand how much of this problem is a result of the dimocrats?
We can't afford all this spending! If we need to spend $75billion on housing then it has to come out of the TARP money or the so-called stimulus package. We can start by canceling Harry Reid's $9B pork train from Disneyland to Vegas and use that money to help home owners. We then can take then can take Wall Streets $18B bonuses back that firms gave using our TARP money. The $2B that is available to ACORN should be diverted to housing as well. The $800,000 salary that the postmaster general collected should be cut in half and diverted also....If you gave me a red pen and a few days I could come up with $75B of waste to use to help home owners. I'm sure that neither the Republicans nor Democrats would like the cuts I make.
I have a job. I pay my taxes. I pay my mortgage. I pay my credit card bills. I feed my family. When do I get mine....?!!! No wonder there is a growing number of angry people in this country. They do what they are supposed to do, make prudent decisions, don't look for handouts and are decent hard-working Americans. Real 'change' will require much more than a new president. Real change requires the American people to stand up and do something about the nonsense we have tolerated from both parties (and continue to tolerate) for way too long. Too many people in this country are sheep following the herd.
Time to start separating the true 'victims' of the recession from the greedy freeloaders who got in over their head. 'Hope' and 'Change'? I 'hope' we get a real 'change' away from the era of personal irresponsibility and the 'someone else will pay for me' mentality.
@ wally, who said "Many foreclosures are due to people just losing their jobs and income. What about them? They can't refinance because they no longer have the income to support any payment. "
Yeah, but the GOPers want everyone to think this is about "socialism" and "handouts," so they are going to scream misrepresentations at the top of their lungs from their soapboxes until they have a collective embellism. They ignore that the only reason the housing bubble existed was because banks created crazy securities based on these fraudulent mortgage schemes, which further incentivized tricking people into taking the mortgages and created obscenely inflated home prices. Now that the bubble burst, people are left with homes not worth even close to what the mortgage principle was and it's not their fault. It's the fault of the banks abusing securities trade.
If I don't pay my rent on the 1st of every month I would get evicted...Yet if I go out and buy a house or condo I cannot afford – the government and taxpayers will pay my mortgage...Great deal for those that have already scammed the banks and put America into this mess. How is it that the scammers win again? Instead of paying their mortgages they are using the free bucks to buy new SUV's...Great deal – FOR THE CROOKS.
MJ – Look into Obama's background as a community organizer and you'll see he had a hand in the subprime lending. The fact is that if you live on a street with a foreclosed home on it your property value decreases. I don't like the mortgage bail-out either but it needs to be done. I hope he has a good plan instead of a lot of hand waiving so the market doesn't drop another 300 points today.
PS...Banks didn't take bailout $$ as a gift...they owe it back plus interest. And truth be told many were forced to take it because the government essentially forced banks like B of A to take over Countrwide and Merrill so they didn't collapse. Now B of A may drown because of those forced acquisitions by Uncle Sam.
I think you should probably can that approach. November 4, 2008 spoke loud and clear with respect to how much patience America has left to spare for the GOP.
Beth how can you say Congress did not reg. Fanny or Freddy? The buck stops with the pres is this case Bush. The GOP has always said less reg is better. It was the banks that are at fault. They suck us dry and now you want to blame the Dems. Stop crying! If I lived next door to you and did not pay my bills your value would be going down. So, do you want your value to fall if you have been doing the right thing? If not then bail or row but stop crying.
What about the $250.00 going to the people on Social Security. hell that won't even pay your Gas and Light bill for one month. Where does it help the elderly.
I think at the end of the day there are still going to be millions of people who bought over their heads and should be foreclosed on.
why? he has a house he can't afford.
so he's a member of the club.
I was going to send my kid to Harvard but in the last month or so, (since 1/20/09), lost faith in their ability to educate.
Will this stimulus package stop Countrywide from taking my house. I have followed every step they asked me to take and they still want my house. I had a stroke 7-07 and surgery 12-07 and got behind in my mortgage. The first time. I was sold to Countrywide, my refinance was not with them originally. Will they give me the lower interest rate also. What can I do?
The reason the Republicans does not want to help HOMEOWNERS:
HEDGE FUNDS: They want their position to be paid out since they feel that they correctly called the market.
They rather see the econmoy collapse because they can CASH IN the value of their positions.
That is why the BANKS under BUSH never helped the homeowners.
They new when they SOLD ARMs that the rates would ADJUST this year. CRIMINALS...
JUST SICK CRIMINALS talking about Capitalism.
I don't get it....Obama calls for an "era of new responsibility" (I'm all for that) and keeps frightening us about how bad the economy is (it isn't good) , and how bad the corporate CEO's are for their private jet travel (I have no sympathy for them), but then he takes the biggest corporate jet out of the hanger (that's the one you and I pay for) and flies from DC to Colorado to sign a bill? Wouldn't it have been more appropriate (and cost the tax payers less money) if he had signed it from behind his desk at the white house? Oh yes, I forgot the importance of political symbolism and theatre......face it, Obamasheep, this guy does not represent change....
...but I thought TARP's $350BILLON + the SECOND $350 BILLION was going to make BO's plan happen. Is THIS the CHANGE we were waiting for??
Call this one the "Country's Refinancing Aid Program". (your acronym here...)
OH BOY! Another 9 million sure votes for the democrats in 2010 and 2012–and all we have to do is throw some more candy!! So what if it bankrupts the mortgage companies and puts the U.S. under billions and billions of dollars of additional debt? I'm sure the next six generations of Americans won't mind paying off our I.O.U.s to China and the Middle East........that is if there even IS and America.
Remember the good ol' days when people were actually held accountable for their behavior and business decisions? Ninety-five percent of the people who are being foreclosed on are irresponsible spendthrifts who DESERVE TO BE THROWN OUT IN THE STREET.
I am getting so tired of working to BAIL-OUT IDIOTS! We need to bring back something called "personal responsibility"......but with a Democrat in the White House, that is unlikely.