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. Independent Paul

    And BTW – CHRIS DODD and BARNEY FRANK should be strung up. They are the primary reason why there wasn't any oversight, and Dodd even received a free loan for his efforts. They are CROOKS!!!

    February 18, 2009 11:10 am at 11:10 am |
  2. Mike in Houston

    Another step toward socialism. The government will hire you or pay you not to work. You bank at the government bank. You owe the government for your house. The government borrows in your name.

    This used to be done by private companies long ago until it was outlawed.

    How sad, we are witnessing a prolonged failure of an administration in slow motion.

    February 18, 2009 11:11 am at 11:11 am |
  3. Gary

    At last a little common sense being expressed in the comments.

    February 18, 2009 11:11 am at 11:11 am |
  4. Kent

    CNN: Please help Senior Writer Tami Lubhi find the word 'department' in the dictionary. I looked it up in two dictionaries just to make sure there wasn't some obscure definition that I did not know.

    Journalists should no more invent their own language than they should invent their own news.
    Ms Lubhi and the editor that proofread this article should be looking for a new line of work.

    February 18, 2009 11:16 am at 11:16 am |
  5. Mike in NYC

    Based on the responses so far, it's encouraging that many people know moral hazard when they see it.

    Really, there should be an IQ test given to prospective home buyers.

    February 18, 2009 11:17 am at 11:17 am |
  6. reality check, ky

    This is not about people who acted irresponsibly, folks.

    this is more about PEOPLE WHO DID EVERYTHING RIGHT getting relief.

    Don't insult HARDWORKING AMERICANS who have suffered from the economy.

    I'm beginning to think that those who are slamming this plan to save mortgages are people who are safe in their jobs and can afford to slam others less fortunate.


    (Thanks Mr. President for finally addressing this issue.)

    cnn, you probably won't post this since you are obviously in support of Rush conservatives and are trying so hard to keep positive news from getting out.

    February 18, 2009 11:17 am at 11:17 am |
  7. Sam Sixpack

    I can't pay my bills and I want to get drunk. When do I get my $8,333?

    February 18, 2009 11:18 am at 11:18 am |
  8. Texas Teacher

    Debi, you are just as pitiful as as Bock! You have no idea what it is like to have to morgage your home because the foundation is cracking right after recovering from a brain concussion.. and then the gas prices go out the window. On top of that you have an emotion break down from the stress no doubt. You run out of sick days, your school does not so much as send you get well card. When you return to work on your 5th day back when you are weak and unsteady on your feet you get a observation that states that you are an incompetent teacher though you have had nothing but glowing reports all the ten years have worked in this All Black school... except for you.. After a month with no pay struggling to do your job with no support whatsoever, You get to feeling like for the first time that you are a stranger in a strange land... then you get sick with what appears to be the flu after only about 2 weeks back to work..... probably brought on by stress which weakens the immune systerm...but oddly it won't get better! Your finances become a nightmare. The money to drive to work, precriptions, and food become increasingly a burden. That is where I am at... I want to call you B word... but I won't.

    Now you tell me, Holier than Thou, Debi. Just how would you feel to be a widow and suddenly the sky actually starts to fall on you! People like you make me sick!

    February 18, 2009 11:18 am at 11:18 am |
  9. Nicholas

    Thank u Obama for your understanding. I know that this spending does not please some people. I beg you Mr. President to also try to reduce the deficit in your first term in office. Thank you for your work.


    February 18, 2009 11:19 am at 11:19 am |
  10. Marc

    To those who are complaining about the Dow Jones and stock market, the President and his economic/financial team already admitted that it will take a while before their strategies produces the expected results (which is something quite obvious to say, Stock Market works on result and expectations and right about NOW the results of the companies are bad and the expectations are grim), so let them work as they have been (i.e. HARD) for a while longer before start the whinning.
    Rick – TAX CUTS ALONE DOESN'T WORK! The economy is NOT something that simple that one remedy alone can fix it.

    February 18, 2009 11:19 am at 11:19 am |
  11. idm

    As I understand the bill, the money will not go to those who over extended themselves, but rather those who, thru no fault of their own, have lost jobs due to closings, or other reasons. NOT those who bought a house worth $200K with a McDonalds paycheck.

    As to those haters who still refer to him as 'your president' or 'senator Obama' – get over it. He is the AMERICAN PRESIDENT, and deserves the respect of the correct title. We suffered through 8 years of hell with Mr. Bush, and the mess he left will not be cleaned up in 10 days or 100 days. President Obama is starting to dig us out of a huge hole, and he needs the support of everyone.

    February 18, 2009 11:20 am at 11:20 am |
  12. barack obama is still just B.O.

    just another example of government sticking their noses where they don't belong.
    We can't help everyone with a hand out including the auto makers, banks, and those who overbought their homes or fell on tough times.

    All this does is prolong the recession/depression, make it even worse, and teach business and individuals not to take responsibility for their actions.

    Sure doesn't sound capitalistic to me anymore.

    February 18, 2009 11:20 am at 11:20 am |
  13. Obama rewards bad behavior

    Obama is setting a horrible example to law abiding, tax paying, mature indivudals both here in the US and around the World/

    The banners for Obama's Change should read:






    February 18, 2009 11:20 am at 11:20 am |
  14. Tony

    I guess they will have to add a third shift at the Buearu of Engraving and Printing to keep up with the Dems bailing EVERYONE out......

    Wow this is change you can believe in. I think we will be using our paper money to repy this for many years to come though.

    Someone has got to stop them.....

    February 18, 2009 11:20 am at 11:20 am |
  15. Sniffit

    You GOPers conveniently ignore that the outrageous value of some of those homes, and therefore the mortgage principle obtained in order to buy them, was the result of an inflationary bubble that the crazy lending practices created, which in turn were motivated by the greed to drive up the value of the bunk securities the banks created based on those mortgages. In most cases, the home values did not reflect true fair market value, but rather an untenablly inflated value due to predatory lending...so forcing banks to renegotiate the mortgages and accept principle amounts based on a more realistic valuation makes perfect sense and is precisely what is needed.

    February 18, 2009 11:21 am at 11:21 am |
  16. Dave G

    All who cry, I pay my bills and want thanked. For what, you pay them for your benifit. Then you ask, what do we get. You get an economy. Without this, the economy tanks. Then where will "personal responsibility" get you. You claim you've been taking care of yourself. Bull. You perform your own medical procedure, fix your own car, farm your own food, edjucate your own children, fix your own roads. NO. You depend on others to do this. Of course, you have money to pay for these services. How do you pay for this; Its because we have an economy. If housing continues to kill credit, the economy (ie. your job) disappears. So THANKS!!!

    February 18, 2009 11:22 am at 11:22 am |
  17. Joe Cernick

    How about aiding us who have sacrificed and already paid off our mortgages? Why should we now pay for other people's mortgages?

    February 18, 2009 11:22 am at 11:22 am |
  18. Beth

    This is not about George Bush and the "past 8 years". If I see that one more time, I think I'll puke! George Bush warned Congress on MANY occasions that Freddie and Fannie needed regulation and the Democrats said they didn't! Why are the Democrats getting off scot-free?
    This is about people who should have been smart enough not to take a loan that they couldn't afford to pay back. Now people who were responsible by paying their own bills and mortgages are put on the hook for this! It's not fair, and I was willing to give President Obama a chance, but my patience is wearing thin.

    February 18, 2009 11:23 am at 11:23 am |
  19. LIP

    There are those of us that were conservative in how we handled our money from limiting what went on credit cards to paying them off monthly to buying homes we could afford. We were not trying to see how much we could make in the risky housing market for the short term.
    It seems that a precedent is being estabished here that would legally entitle me and other sound minded people with as much money from the government as those who squandered their money.
    Are there any lawyers lined up out there that are thinking the same thing?
    So, if I have this right, stupidity will be rewarded and good common sense will be ignored.

    February 18, 2009 11:23 am at 11:23 am |
  20. Dean

    To those who continually complain that the market "keeps tanking" in spite of what PRESIDENT Obama (try to get that right) is doing, try to remember that he has taken over a speeding runaway train. He's on the brakes, and you're complaining that he isn't stopping it on a dime. Better the old guard should still be at the controls, running it downhill at full throtte? It's bad enough that the losing party keep trying to push his hand off the brakes. That train is headed for YOU, in case you hadn't noticed.

    February 18, 2009 11:24 am at 11:24 am |
  21. WhoCares?

    Nice to see the Christian Morality of helping those in need is solely dependent on money concerns.

    February 18, 2009 11:26 am at 11:26 am |
  22. Beth

    And one more thing.... the "3-2-1" thing is getting really old. It's not even funny anymore.

    February 18, 2009 11:26 am at 11:26 am |
  23. Unemployed Republican

    GOP = Party of Hypocrits
    Criticising others of the same thing your doing. That is close to the defition of hypocrisy. It's very shamefull to be a republican these days.
    The next time you want to point a finger to something or somebody you better look at how many of those same fingers are pointed in your direction.
    My party leaders are thinking everybody in America is as stupid as they are. THEY ALL DESERVE TO BE TROWN OUT until they find a
    1. New integre and thoughtfull leaders
    2. New constructive message for the good of America
    3. Get ride of religion wackos and extremist talk show or TV anchors of the party.

    February 18, 2009 11:29 am at 11:29 am |
  24. KLS

    My son has a 2nd mortgage with Bank of America. He has asked to lower the 10.5% interest so his payments would be reduced. The value of his home is less than the total of his two loans. Bank of America said "SORRY WE CAN'T HELP BECAUSE YOU AREN'T DELINQUENT OR IN FORECLOSURE" Let's see they took our taxpayer money and purchased Merrill Lynch paid out huge bonuses, but refuse to help a struggling homeowner.
    Thank goodness Obama is willing to do something about this!!

    February 18, 2009 11:30 am at 11:30 am |
  25. Dwayne-Denver

    Glad he's doing something. There is never a perfect plan. But I'm glad he is attempting to fix what was broken.

    February 18, 2009 11:31 am at 11:31 am |
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