February 18th, 2009
12:58 PM ET
9 years ago

Obama seeks to aid 9 million homeowners

The President announced his plan to help struggling homeowners at an event in Arizona Wednesday.

The President announced his plan to help struggling homeowners at an event in Arizona Wednesday.

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.

Full story

Filed under: Economy • President Obama
soundoff (247 Responses)
  1. Scott, Tucson

    Guess the CNN censors are at it again here...

    February 18, 2009 10:28 am at 10:28 am |
  2. Doug, New Jersey

    What a nice way to punish all of the decent Americans who did the right thing and didn't buy a home that they knew they couldn't afford. All of the responsible giving Americans who live within their means once again must bail out the hateful takers who take advantage at every chance. It is the lib way to reward selfish taker behavior and punish those who play by the rules. Take take take, it is the lib American way!!!

    So libs, what happens when you have taken all the money from those who have worked hard to earn it? Who will you take from next?

    February 18, 2009 10:28 am at 10:28 am |
  3. alvino


    An economist you are not!

    The right wingnuts complain about adding $787 Billion stimulus to our debt after "W" takes the debt to over $10 trilion.

    February 18, 2009 10:29 am at 10:29 am |
  4. alvino


    An economist you are not!

    The right wingnuts complain about adding $787 Billion stimulus to our debt after "W" takes the debt to over $10 trilion.

    February 18, 2009 10:29 am at 10:29 am |
  5. carolflowery

    Well, I hope these folks this propasal is helping have jobs. I sure wish I could get my interest lower, i make my payments. I still think one place no politician that i know have has ever mentioned is this
    crazy Credit Bureau (we have three now) and all three get looked at
    by all kinds of nuts out there...here's a thought, and it wouldnt cost a dime. Why not just do this with a house payment. If it's due say in
    March, so what when you pay it in March, if you paid it in the month
    it was due, why get a late payment negative, it was paid. Oh I know,
    that's common sense and doesnt cost the taxpayers any money.
    We need some good ole fashioned common sense, is there any out there anywhere?
    So, here we are, if you are behind let's say 3 months you will be saved.
    If I am 3 days late but I make my payment, ooops too bad so sad, your credit rating just went down. By the way, how will this appear on their credit report? Does anyone know?

    February 18, 2009 10:30 am at 10:30 am |
  6. James at 46

    This is great! I've never missed a payment on my $268,000 mortgage, which carries a 5.75% fixed rate. I'm going to stop paying on March 1st, so I can get this new taxpayer-funded 4% rate. Thanks a lot, suckers! Long live the revolution!

    February 18, 2009 10:31 am at 10:31 am |
  7. jeff

    Let me guess, I need to stop paying my mortgage to benefit. I'd be happy to 🙂

    February 18, 2009 10:31 am at 10:31 am |
  8. MissouriVoter

    This is just a big joke!

    Government gets bigger and the lame gets more help from us. Instead of fixing the problems we are just throwing a Band-Aid on it. And there is talk of another huge loan.

    I just wonder if Obama is trying to break this country? Who will we owe this stimulus money too? Will they be pulling his strings for a favor?

    February 18, 2009 10:32 am at 10:32 am |
  9. Heidi From OKC

    Socialism will do us all in February 18th, 2009 10:12 am ET

    Let me see if I understand this. An individual buys a house they cannot afford; the person does not have the income to make the payments; does not have the downpayment; and when the variable rate ticks up, or the individual loses his/her job, the individual defaults on payments and there is a foreclosure.

    My parents bought a house they could afford, with my dad being in the contruction industry they were able to pay for a lot of things...until the housing market came craching down.
    OPEN YOUR EYES! This is effecting EVERYONE and we needed help 18 months ago I am just glad someone is doing something

    February 18, 2009 10:32 am at 10:32 am |
  10. Angel Iceyel

    Well, I think obama is doing a great job as president.

    Thanks Obama

    February 18, 2009 10:33 am at 10:33 am |
  11. Sniffit

    @ beevee

    Yeah, maybe they should hire some of you GOPers to wield your magic wands of righteous judgmental indignation and you can determine the "worthy" and "unworthy" when it comes to helping people who need it.

    February 18, 2009 10:33 am at 10:33 am |
  12. Proud American

    If I knew he was going to go from a nobody, to a senator, to president, to messiah...to Santa Claus...I'd have run out and bought a $2 million dollar house that I couldn't afford, and sit and wait for the rest of you to pay for it for me!

    That's what liberals don't realize; they believe the government is some cash-printing entity with perpetual supply.....when in actuality, the government's YOU, ME, and the guy next door....we're paying for these other people that got in over their head.....and, now, because they're so stupid, OBama will create loyal supporters and future democratic voters out of them by paying their mortgage for them.....with OUR (not some mysterious entity's) money....

    February 18, 2009 10:34 am at 10:34 am |
  13. vamp123

    hey big "O" what about the rest of us schmucks paying for our mortgages on time!?!?!? We didn't overextend ourselves when we bought our houses why are you screwing us? I've been a huge supporter of yours and the what you stood for, but I tend to agree with some people that think that the folks that bought that overpriced home on an ARM don't DESERVE to be saved. It's their own fault. They thought they could buy "cheap" in a place like Florida or in Vegas and the price would increase for the next 2 years before they would resell their house. I DON'T THINK SO!!! You people that did that, you are thieves, and I am dam proud that I bought a house that was only 2.5 times more than my salary! That is the way to go. You won't get screwed in the long run. You don't need a million dollar house unless you make $300000/year! You CANNOT AFFORD IT! idiots. You scumbags deserve to pay your dues like the rest of us schmos!

    February 18, 2009 10:35 am at 10:35 am |
  14. Vi

    Glad to see our president doing something and not sitting back letting it ride...just like our former lame duck President!

    February 18, 2009 10:35 am at 10:35 am |
  15. Sniffit

    @ obambi

    I dare you to. If you think that's how it's going to work (and if anyone actually believes your total nonsense), then you should probably be in a rubber room, not owning a home.

    February 18, 2009 10:35 am at 10:35 am |
  16. Mississippi Mike

    Since this little tidbit of information came out the Dow has started tanking again. I would really like to see B. Hussien Obamas' paperwork from Harvard. I don't think you can be this stupid this many times in three short weeks and actually have a degree even if you graduated from the University of Ark. Monticello. This man has to be the dumbest person on the face of the earth. God help us

    February 18, 2009 10:35 am at 10:35 am |
  17. Ben

    Lets see,

    President is making hard choices..

    All those who caused this mess need to go to jail,
    Greenspan and Co.

    February 18, 2009 10:35 am at 10:35 am |
  18. M


    I agree! The next mess to fix is the credit card industry. The practice of usury in this industry is just plain out right wickedness, and you are right a lot of people use these darn credit cards just to make ends meet, especially when they are hit with a crisis (health care emergencies, major car repairs, death, etc.) I think we have all been there.

    The majority of folks who use credit cards are not charging designer bags, shoes, & bling (that is a myth). Too many of us are footing "the bills" on the credit card.

    February 18, 2009 10:35 am at 10:35 am |
  19. GA Independent

    So let me understand this... since my house isn't upside down and I am making my payments – just barely, I don't get a break? They could have put in the 15K tax credit that would have helped me SELL the house which is priced way below appraisal, but still just out of reach of first time buyer...

    So maybe I need to start shorting the bank and then I will qualify for a restructured loan? This just sucks. All I want is someone to buy the house...

    February 18, 2009 10:35 am at 10:35 am |
  20. Proud American

    @ SNIFFETT –

    I believe they do; since they obviously overlooked, or omitted much of the truth about Obama during the election...however, fear not unwise liberal; you'll quickly see his true competence and colors.

    February 18, 2009 10:36 am at 10:36 am |
  21. Christine

    You can kiss good bye the America we use to know! Hello government control. I hope you all are happy that the liberals are running our country into the garbage!

    February 18, 2009 10:36 am at 10:36 am |
  22. K

    I understand that we are all suffering from this whole housing/credit crisis, but, for the people who can't afford to pay now, what are we doing to get them to a level where they can afford the amount of house they bought? Can we afford to subsidize for the life of the loans? These plans are very temporary! Most americans still make their mortgage payments. And for the banks who intentionally made a gamble on those sub-prime borrowers because they thought they could cash in big if those mortgages were actually paid off, how do we not know that the same ill-advised thinking will not continue? We just need to learn to live within our means. I feel sorry for the young people like me who are going to foot this and other bills.

    February 18, 2009 10:38 am at 10:38 am |
  23. Mark

    You idiots out there ranting about socialism need to wake up and smell the coffee. Unfettered, unregulated capitalism is what has landed us in this mess. Both systems by themselves are imperfect, however, history has shown that a hybrid system of regulated markets with targeted socialism works best. Unregulated greed has caused this mess and some socialism is required to get us out of it.

    February 18, 2009 10:38 am at 10:38 am |
  24. Sniffit

    It is absolutely hilarious reading the GOPers on here blabbering about this being a bad thing when a substantial number of the EXACT SAME POSTERS (at least, the same name...altho it's probably a basement full of outsourced bloggers) argued against the stimulus asking "where's the help for the mortgage problem"? CNN coul dfake an article about Obama finding a cure for cancer and you people would find fault.

    That last nail in the GOP coffin is all lined up and you're so angry that you're willing to run around with a hammer in each hand swinging at random? Brilliant plan.

    February 18, 2009 10:38 am at 10:38 am |
  25. TCM

    Owning a home isn't a RIGHT in this country; despite what Pelosi, Obama and the rest of you ignorant liberals believe....

    Healthcare isn't a RIGHT either....

    however, when you libs are waiting 6 hrs to see a doctor for substandard healthcare...ask yourself, "Is it really free?"

    When you're paying skyhigh taxes...soon, very soon,.....for someone else's mortgage..."is that the change you wanted?"

    Liberalism is a disease.

    February 18, 2009 10:38 am at 10:38 am |
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