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.
And what about those of us who did not buy homes (even though we truly wanted to) because we knew that it would be beyond our means?
We've been paying inflated rental costs, have had no tax write-offs, no homes of our own, etc. What about us?!!
We already had billions given to banks & the American tax payers have yet to see a loan, or revised mortgage payment to offset the severely decreased value of their homes in the last year alone. Is the monies (billions) that President Obama allowing to be given the banks this time around ever going to be seen by the American tax payers e.g., reduced mortgage payments for those of us who now own homes that were appraised one or two years ago at $30 – $40,000 more than they are currently worth or be able to get a loan on a new car now that the car industries that were given billions of our tax dollars & have an excessively amount to new & newer cars that have never been driven because we can't get loans?
Socialist, Socialist, Socialist...Why is that when the government wants to help Americans it's called socialist. We are sending billions of dollars to Iraq to help "build" their country and no one say...we are being Socialist...but when we want to help Americans build America...It's Socialist.
I think that helping my neighbor stay in his home is good not just for my neighbor, but also for me. The last thing I want is a foreclosed house next to my property driving down my property value even more.
I would agree that some people did get in over their heads when buying their homes and the banks were all to helpful to keep them in over their heads. But you have to admit that more and more people are losing their jobs due to this economy and the house that they were able to pay for when they had a job is much more difficult to keep when you don't have a job.
Rick @ Has trickle down economics worked for us in the past? Why do you repugs always call for tax cuts; tax cuts for who? Greedy banks? TAX CUTS DO NOT WORK!
Good. This is what government is for.
Hey Obama – I need some help putting in my new heated olympic swimming pool. I guess I should just stop paying my mortgage and you'll pick up the tab.
Thanks Dude – you rooock!
Until this housing mess is stabalized the economy will suffer.
So, fix the housing problems so we can move on to the next step.
I could have sworn this was $50 billion this morning. Well, the day is still young.
a message to sg:
Address this man as PRESIDENT Obama. You have a right to your opinion, but give him the respect he deserves. Plus I don't get when so called Americans want this man to fail. I gave President Bush (that's right sg, I called him President, not Governor) a chance until he messed up with Iraq, Hurricane Katrina, and the Economy. And I forgive him for being such a bad president. There is a difference between 8 years of Bush and 1 month of Obama, sg. And yes we need "President" Obama's help and everyone needs to help each other.
Personally, this will work ...for the short term ..maybe 10 or so years...
I know it's necessary because our country is not prepared to feed millions of homeless...let alone house them... which would be the scene if nothing was done.
It does seem unfair for those who have done the right thing.....but keep in mind you really are your brother's keeper. Another reason why the stimulus included increase/extension for unemployement. Again, a short term fix but will help sustain those recently losing their job until the infrastracutre programs/enviromental/technology jobs begin and opens up new opportunities.
The question on the board now is : Has anyone learned anything in being greedy? If it continues the wrath will not hold back.
To all the people espousing tax cuts for business, etc. (trickle down economics): Over the last 10 years, my wages have gone DOWN, and benefits have been slashed as well.
Business owners do not seem to want to SHARE the benefit of their tax cuts with employees.
@ Who Cares
There is a HUGE difference between Charity and Extortion. Even Christ, himself, knew this. Pick up a Bible sometime and educate yourself before throwing more stones at people of faith.
We'll be praying for you.
It's amazing reading all the comments from the Obama haters...you would rather see Americans put out on the street then to see them get help throught this tough time. you see thats the difference between rupubs and dems.....dems wanna see everyone do well, repubs only care for themselves and thats it.
3.....2.....1...... and Beth's head explodes from frustration......
Hey Beth! It's frustrating dealing with an administration that you disagree with, isn't it? Don't worry, you'll learn to have some patience – I know, because I have 8 years of experience. It'll be okay, just hang in there.
Sorry about the 3,2,1 thing, but couldnt resist. It is a rather stupid tactic thats been way over used.
I still think that this administration has more brains than the last one – but thats just what I think and only time will tell. I'm willing to bet on this one though, and I was right that the last president was going to be a failure, so we will see!
yea it would be nice to not bring up lil Bush.. but he is the main person that did this and now you dont want to hear his name .. lol .. ur funny .... we dont need CSI to find out how this got started .. and my 401k was going in the toilet way b 4 Obama was elected... but since every1 was asleep when lil bush was taking out tax dollars and just spending and spending on some BS.. now that Prez Obama wanna use tax payers money to help americans now people wanna wake up and get off the couch and cry foul...
Dean, gimme a break. You guys were the ones blindly following Obama and never questioned him. Now you're trying to blame Republicans, Bush, capitalism, darwinism, global warming, etc. because reality is setting in?
Almost half the country saw Obama is totally inadequate for this job. Too bad the majority of the country didn't pay attention during the campaign to what the candidates were SAYING and not just letting their frustration with Bush guide their vote.
Maybe you'll learn.
Hey O !,
If my money is being used to help pay for someone's mortgage, don't you think it SHOULD BE MY MORTGAGE !
Obama is trying to cover many "bases". He needs a chance and he needs time. I am sure it is a terrible for him to go behind Bush and "pick up the pieces".
How many of these people had "Liar Loans"?
Although, a large % of these homeowners brought housing they could not afford, there are a larger % of howeowners that refinanced homes that had lots of equity in them with these sub-prime lenders, these people are losing their homes as well, especially elderly people that have been in their homes that were paid off. These lenders knew this was a scam and knew these loans will fail but they did not care because they knew they would bundle these bad loans and sell pieces of it to other investors. They also realized the more mortgages that were given the more housing prices would escalate. And housing did escalate for no other reasons then the fact that anyone could buy a home no matter what their financial situation. Who would turned down a home they could not afford, if you did not truly have to invest anything in the home. So it is not the homeowners but the lenders and they should be prosecuted. I think if the homes are refinanced to the true value and the homeowner can afford that then let the finance company take the lost. The are making lots of money on mortgages anyway. If you pay for 30-years they get 3 times what they paid for the home.
If Liberalism is a disease, then what is conservatism?
Hell on Earth?
Because, if you hadn't noticed, the whole world is paying for the price of conservatism.
Get out of your house once in awhile TCM. Go to a city.....you know, where most of the people are – talk to them. I think you might be surprised at what you find.
Too many conservatives live in their own little bubble! Someday they will see that everything is inter-connected and that they can't just hide in their churches with a shotgun strapped to their backs!
Oh....was that offensive? I'm so sorry....
Am I the only one wondering how many of these messed up mortgages were made to illegal immigrants?
It took the last administration eight years to screw up this country and the recession started over 18 months ago. This new administration has only been in office four weeks. Instead of complaining about how President Obama is not fixing it fast enough or is making mistakes, maybe you should still be angry at Bush for creating this mess in the first place and leaving office without lifting a finger to fix anything. Direct the anger at the deserving party not the one that's trying to help.
To all who wish that our President fail!
keep on following Rush Limbough. It will get you somewhere, yet not to the bright future. And to President Obama keep up the good work. We do not have debt in our house, but l fully agree with the President that lot of home owners need help. Somehow the Republican Senators did not have any opinion about a three page plan to rescue the wall street two months ago (TARP) money, but complain about 1080 pages to re-build our economy. Somehow it makes me think, they need to go back to school.
President Obama you are doing a spectacular job. Keep up the good work.