New York (CNNMoney.com) - Under fire to do more to stop the foreclosure crisis, the Obama administration announced new steps on Friday to help the unemployed and those who are "underwater" with a bigger mortgage than their home is worth.
For eligible unemployed borrowers, the effort would require loan servicers to reduce monthly mortgage payments to 31% or less of income - and even suspend them entirely, an administration official said. The forbearance assistance would last up to six months, after which the borrower would be evaluated for a loan modification.
An administration official declined to comment whether interest or fees would be charged during the forbearance period.
Now that your #1 priority is off the table Mr. President, I'm glad to see that you haven't lost focus on the suffering around the country. Next big challenge should be financial regulatory reform.
as Obama fights for US – the banks and republicans try to stop him! why people vote for those a-wipes i will never know (racism or not) – why vote against your own economic interests?
will this assistance be granted to illegal aliens who have mortgages? will proof of citizenship be required to qualify for this assistance? will American citizens get first priority and consideration ahead of non citizens
Before we get into the argument that this is another give-away, consider the fact that we gave billions to banks. CEOs from those failed business walked away with $20-$50 million in retirement packages from a business that did not have any money.
My real argument is that an empty house does not contribute to economy at all. If this helps people who are atleast trying, then there will be some revenue from utlities, food purchases, trash pick-up and other things that keeps other employed. Whereas, a lot of the money from the bank bailout went to overseas banks to payoff loans, and we never did not see any of that money recirculated in the US economy.
There is every indication that the GOP is willing to work with the Obama Administration to help the jobless. So much so that a GOPer once again has stalled unemployment benefits in the Senate.
So much for Country First, eh, guys.
STOP IT ALREADY....the market will not reset fully because of these ridiculous, continuous interventions by this administration....ENOUGH is ENOUGH!!! People have been living in homes for over two years and not paid a dime....you have had more than enough time to come up with an alternative plan...stop the unemployment extensions while you are at....you are ONCE AGAIN incentivizing people to be less productive and you wonder why....you libs are absolutely CLUELESS!!!
Yeah, and can someone investigate BAC, who got countrywide loans but are too slow or is it that they just can't or won't help!
I have no probs with helping people, but when will those of us who were fiscally smart and didnt buy out of our heads and work two jobs to afford the lives we choose get a break. As much as this country has become divided along political lines, the lines between those who work hard for a living and those that mooch off the system is causing even more divide.
I don't agree with all this. We are going to pay the banks off again. I think we need to be moving ahead on Finance reform instead and use the tarp to pay off debt.
I did supportm the health care but banks need to quit getting paid for more handouts. Let them have the houses and let them go under if they need to.
Let the Real Estate bubble burst. The Real Estate industry and their lenders are a scam. People just buy houses to flip them and make a profit rather than actually LIVING in the home as intended. The middle class suffer as the prices get artificially jacked due to the vultures.
How about counselling many people not to think they can afford owning real estate in the long run and using their current predicament as the prime example?
How are we going to pay for this one?
Why doesn't Odumbo and the DemocRATS just keep his and governments nose OUT of private legal contracts and let the system that has handled them for over two hundred years deal with them?!
It is NOT government's role to stop or prevent every single human misfortune. Or this this just their way of buying more and more votes on the backs of future taxpayers??? STOP ENDANGERING THE FUTURE OF THE COUNTRY WITH THIS STUPIDITY!!!
Multiple years of unemployment benefits isn't enough? Refinancing their mortgages – after they took advantage of the low teaser rates – isn't enough? Now we have to lower principle values at taxpayer expense? And let me ask.....if/when home prices rebound and suddenly these same folks have undeserved home equity, who is going to benefit when the home is sold. That's right.....not the 'investor' (taxpayer) who had to fund this mess. People ought to be embarrassed at how often their hand is extended. Not everyone gets to own a home. It's not my fault. Get over it.
This is just not fair. Here I am working my butt off and the government is throwing money like rains. Helping is okay but doing this from my pocket after pocket after pocket - that I have nothing left. The President should focus on job creation - not entitlement creation, stimulus bill, free health care - etc. and it is I that will be taxed - hardworking honest person. If i ran out of money, wilL IRS ran after me especially when I don't have money to pay for my healthcare? This got to stop. Obama and Washington needs to read the books of Proverbs regarding work ethics, human dignity and honor to work hard for a living to survive and live - not wait for money entitlement or whatever from stealing, lying government.
Just what we need, more spending on things people can't afford. Worry about saving social security OBAMA!
Oh I can hear the bankers gnashing their teeth and pulling out clumps of hair already! It makes no sense to force people into foreclosure & refuse to modify a loan for someone who has lost their job, then sell the home to someone else for 60% of the loan value anyway.
Again a sign of a president that is looking out for the average American as compared to the republicans (Party of NO)who seem to be blocking everything!
Mr obama do what you have to do go get them mr president