March 3rd, 2009
03:05 PM ET
6 years ago

Obama to test home loan do-overs

Mortgage modifications have a bad rap, yet President Obama is depending on them to stop the foreclosure crisis.
Mortgage modifications have a bad rap, yet President Obama is depending on them to stop the foreclosure crisis.

NEW YORK (CNNMoney.com) – Mortgage modifications have a bad rap, yet President Obama is depending on them to stop the foreclosure crisis.

Modifications continue to be pushed as the best way to get struggling borrowers back on their feet. The jury is out on whether modifications work long-term. One recent study showed about half of borrowers with modified loans fell behind within six months.

Still, Obama is giving modifications a central role in his $75 billion foreclosure prevention program.

The program, which starts on Wednesday, calls for loan servicers to lower struggling borrowers' interest rates to 31% of their gross income. The government will subsidize part of the reduction, as well as kick in incentives for the servicers, borrowers and mortgage investors to participate in the modifications.

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Filed under: President Obama
soundoff (61 Responses)
  1. Raymond

    With all his broken promises... can we do an Election Do-Over??

    Obama is a loser!

    March 3, 2009 03:24 pm at 3:24 pm |
  2. aware

    Listening to Obama is a waste of time!

    Just remember that Obama has no moral center or code of ethics. He is a postmodern relativist who believes that concepts such as right and wrong, goodness and badness, or truth and falsehood are not absolute but change from culture to culture and situation to situation.

    So kill babies or deny medical services to the elderly if it saves money! :(

    March 3, 2009 03:28 pm at 3:28 pm |
  3. Had It

    What about those of us who can't buy, but must rent and our rent is raised regularly? Where's OUR bailout? We didn't do anything wrong.

    March 3, 2009 03:29 pm at 3:29 pm |
  4. proud army navy mom

    It's quite refreshing to have a president that actually looks after the our well-being instead of big business and wall street.

    Thank you, Mr. President. You are much appreciated for your calm intelligent leadership.

    March 3, 2009 03:29 pm at 3:29 pm |
  5. Robin

    Only modify home loans for people who can afford them. If the homeowner makes $75k a year and has a $400K house, the answer should be NO, NO, NO!

    March 3, 2009 03:30 pm at 3:30 pm |
  6. Rick

    loan do overs, what about us that take care of our loans, pay our mortgages and make ends meet, we are not the welfare recieptents of anything but you sure throw our money around without any leadership, why loan do overs, if they got in trouble let them fail because some of us were wiser and smarter than those who took advantage of things. Let those who tried to sneak by fail and quit bailing them out. Must be all those people who couldnt aford the loans in the first place, probably ones who voted for the savior Obama, who will sell this country out along with the rest of his comrades.

    March 3, 2009 03:37 pm at 3:37 pm |
  7. Independent, IL

    Had it-get over it. Landlords have increasing property taxes to cover too. Might want to ask why your rent is raised rather than look for a handout.

    March 3, 2009 03:38 pm at 3:38 pm |
  8. steve

    So much for being in the "Age of Responsibility". Those who are/were irresponsible get help. Those who are/were responsible will be expected to work even harder to pay for the mistakes of others. Fairness like mother always taught me.

    March 3, 2009 03:38 pm at 3:38 pm |
  9. Anonymous

    Raymond, you are the one who needs a do-over

    March 3, 2009 03:39 pm at 3:39 pm |
  10. Rick

    lolol....Obumbler has no idea what he's doing.

    March 3, 2009 03:39 pm at 3:39 pm |
  11. REAL reform

    you're a loser, Raymond. after eight messed up years under W, one month with Obama and you're name-calling? right back at you. anyone who thinks they can form an opinion after one month-- calling it broken promises?--should consider that one month is not very long to meet all of your standards, sub- as they are. all his broken promises..... you're a funny guy. how about let's act like an adult, Ray-Ray, and recognize that one month is not much time to form such 'loser' judgments over. wow no wonder our country is in the hole. we house folks like you. nice.

    March 3, 2009 03:39 pm at 3:39 pm |
  12. cheryl brooks from cali

    Our President is a hard working man, he wants so much to get this country out of rut...

    March 3, 2009 03:40 pm at 3:40 pm |
  13. Anonymous

    Obama is great

    March 3, 2009 03:40 pm at 3:40 pm |
  14. REAL reform

    LOL!!! funny!!!!! 'broken promises'..... after one month? what do you accomplish in one month, Raymond, besides ignoramous name calling???????? can you do better? mccain knows nothing about the economy, and you apparently know nothing about life in general. still living at home with mommy?????? not sure what a loser actually is????

    March 3, 2009 03:41 pm at 3:41 pm |
  15. Independent Paul

    While I am not technically "struggling," I am definitely not well off. Where is my break?

    If you want to do something productive, allow people upside down (becaus the market fell) to convert their loan and take advantage of the lower rates. It is not our fault we bought within our means, and the crooks like Dodd allowed the rest of the people unregulated loans that torpedoed the markets and sunk our values.

    March 3, 2009 03:42 pm at 3:42 pm |
  16. Anonymous

    I'm with you Raymond. I pay my bills on time, and now, seems like those of us that do are supporting the ones that do NOT. I'm rather sick of this scenario already. Who is going to "bless" us with some $$$?? Right, he's raising our taxes, letting Bush's tax credits expire too! Loser! My rent is raised where I live, who's going to subsidize that?

    March 3, 2009 03:43 pm at 3:43 pm |
  17. Les

    Think southside of Chicago Obamachimp used to represent and you'll see what kind of America Obamachimp and the democratic party is creating.

    March 3, 2009 03:45 pm at 3:45 pm |
  18. Sandy

    Election do over for all you losers. The man has been in office for less then two months. Bush had eight years to put the country in the state it's in right now, you think President Obama will fix it overnight...seriously... Stop wishing for his failure, stop wishing for the country's failure.
    Hater

    March 3, 2009 03:45 pm at 3:45 pm |
  19. Les

    BTW, those who are paid their mortgages religiously, you're being punished by Obamachimp, you're not only paying for your mortgage you're also paying for your neighbor's mortgage who bought a house they can't afford.

    Folks that is SOCIALISM! Welcome to Obama's new America where hardworking Americans are being punished while the lazy are rewarded!

    March 3, 2009 03:46 pm at 3:46 pm |
  20. Freddie

    On the other hand, if you made wise financial decisions and were responsible about paying your mortgage on time, you get squat. Oh, wait, you do get something. You get to fund this mortgage do-over through your taxes. Yeah, real nice.

    March 3, 2009 03:47 pm at 3:47 pm |
  21. SoCalGal

    You folks are getting what you voted for...unfortunately, I didn't vote for him and I'm getting what you voted for. Now that you've opened your eyes, open your wallet wider...

    March 3, 2009 03:49 pm at 3:49 pm |
  22. ltd1974

    to raymond and had it, we know both of you are non-obama supporters so why complain about what President Obama trying to due to help the nation. and what broken promise whwn you have the Repbulicans and rush tryin to block everything. please us common sense.

    March 3, 2009 03:52 pm at 3:52 pm |
  23. Words*Matter

    Handing out the goodies for those who couldn't pay.... this is why the messiah is a consummate liar when he speaks of irresponsibility.

    March 3, 2009 03:53 pm at 3:53 pm |
  24. Casey | Sebastopol, CA

    The problem, as I see it, is that you cannot participate in some of these plans unless you are a couple of months behind and in foreclosure and then... because you are so behind, your credit is too low to meet the requirements. Add the loss of a job to that, and it must surely be hell.

    Fortunately, I saw this coming and sold in 2002, not that my situation is all that great. But I shudder to think of where I'd be if I hadn't made that decision THEN.

    For all that whine about bailing out others... where is your charity? I'd ask about your intelligence, but clearly, you are too stupid to recognize that homes in foreclosure on your block affect YOUR bottom line, with or without a bailout.

    March 3, 2009 03:53 pm at 3:53 pm |
  25. Raymond

    Sandy,

    Obama has done more harm in 30 days than Bush did in 8 years. Only a socialist hose-bag like yourself would fail to see the damage.

    Back to your welfare-paid bon-bons and watching The View!

    March 3, 2009 03:53 pm at 3:53 pm |
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