February 17th, 2009
10:16 AM ET
13 years ago

Obama expected to announce foreclosure plan

[cnn-photo-caption image= http://i2.cdn.turner.com/cnn/2009/POLITICS/02/17/obama.foreclosures/art.economist.cnn.jpg caption="Economist Peter Morici said $50 billion to $100 billion won't be enough to solve the mortgage crisis."]

(CNN) - President Obama on Wednesday will visit Phoenix, Arizona, one of the cities hardest hit with foreclosures, where he's expected to outline a $50 billion to $100 billion plan to help homeowners.

Though administration officials are tight-lipped about details, one idea that has been floated is for the federal government to reduce monthly mortgage payments by modifying loans.

Sheila Bair, the U.S. FDIC chairwoman, has advocated reducing payments to between 31 and 38 percent of a family's gross income.

"This crisis in housing has devastating consequences, and our government should have moved more forcefully to help contain the damage," Treasury Secretary Timothy Geithner said Monday.

"You're going to learn about [the administration's plan] as the rollout continues," said Jared Bernstein, Vice President Joe Biden's economic advisor.

Bernstein said it will be a "very aggressive plan to help responsible homeowners stay in their homes."

Full story


Filed under: Economy • President Obama
soundoff (135 Responses)
  1. Chris from NY

    I have heard so much about members of the congress not having enough time to read the bill before it' passed. My question to them is can't they read or did they choose not to read the bill. This process has been on since three weeks now with a few modifications along the way. Students read a whole book in a week if their grades depend on it. Why our congress chose this kind of excuse for not reading this bill is not only inexcusable it is also sorry of an excuse.

    February 17, 2009 11:11 am at 11:11 am |
  2. Michael M, Phoenix AZ

    Welcome to Mesa, AZ Mr. President.

    For most of you readers out there, the City of Mesa is also in a budget crisis, mainly due to their own choices. The City of Mesa has no property tax, so most of the revenue comes from sales tax. The residents have kept defeating any property tax agendas put on the ballot. Mesa, also has one of the largest school districts in the nation, so where does the money come from?

    February 17, 2009 11:15 am at 11:15 am |
  3. Dean in Florida

    How about helping people who aren't stupid or greedy. When I bought my house twelve years ago, I made sure I stayed within my means. I wanted a larger house, but my purchase was modest. And I based my mortgage on what I could afford per month.

    I've never missed a payment. I've never been late with a payment. I've paid all of my taxes.

    I've done everything correctly. Where is my reward?

    Thanks Obama. Shove it...

    February 17, 2009 11:21 am at 11:21 am |
  4. Andy J, Upstate NY

    basically, he is about to announce that he is spending more of our money.

    holy crap.

    I heard all the jokes about "change" and "thats all that will be left in our pockets."

    i thought those joke were funny, but its not too funny when it becomes a reality.

    Hey, buddy, STOP SPENDING MY MONEY.

    It wasn't OK under Bush, and it sure as heck isn't OK now.

    STOP SPENDING MY MONEY.

    CUT MY TAXES AND LET ME KEEP MORE OF MY OWN MONEY

    February 17, 2009 11:22 am at 11:22 am |
  5. Bob in Pa

    That's it guys, create a foreclosure plan that harms the banks profits.
    The banks will in turn continue to hike credit card rates abover the 18% rate. Credit will end up being so tightened, we will end up with the worst stagflation ever seen, if not a huge recession that will take 10-15 years to recover from.

    This continuation of policies that got us hear in the first place needs to stop.

    February 17, 2009 11:23 am at 11:23 am |
  6. Andy J, Upstate NY

    STOP SPENDING MY MONEY

    CUT MY TAXES AND LET ME KEEP MY OWN MONEY.

    AT LEAST I'LL BE ABLE TO FEED MYSELF.

    But the goal here is not to just help people.. the goal is to get as many people as possible addicted to government assistance.

    GET YOUR HANDS OUT OF MY POCKET AND LEAVE MY PAYCHECK ALONE. I WORK HARD FOR MY MONEY AND I'LL GIVE IT TO THOSE I SEE FIT. IT SURELY WON'T BE DEADBEAT WELFARE ABUSERS WHO DONT WANT TO HELP THEMSELVES.

    February 17, 2009 11:24 am at 11:24 am |
  7. Dutch/Hampton Roads, VA

    I think the housing bill needs to be the full 100 billion. This is the root of the problem and we need every cent we can to fix it. I hope the bill will allow the homeowner and lender to renegotiate lower mortgage payments. If we have a strong enough bill that will do this, we may get out of this mess.

    February 17, 2009 11:24 am at 11:24 am |
  8. the idiot

    After over a trillion in wasteful spending on democrat wet dreams, are we finally going to attack the real problem in this recession?

    February 17, 2009 11:29 am at 11:29 am |
  9. Sniffit

    So...when is CNN going to report on the conspiracy theory paranoia that has GOPers claiming George Soros "sneak attacked" our economy?

    February 17, 2009 11:38 am at 11:38 am |
  10. Ray Fisher, Albuquerque, NM

    I am convinced the only way to repair our nation is for everyone to save their money and pay cash for all purchases. New Credit should be banned for at least 5 years unless a mortgage or business loan. Credit cards must be melted to build a shrine to stupidity!!! America can rebuild very quickly just off our saved finance charges and think about ridding ourselves of cell phones & gadgets also till we recover!!!

    February 17, 2009 11:38 am at 11:38 am |
  11. obama-mama

    Well Dean in FL aren't you just fantastic, great, deserving of I pay my bills on time award. Some people are not that fortunate. You need to shove it.

    February 17, 2009 11:42 am at 11:42 am |
  12. obama-mama

    Bob in PA I wish you have told the Bush Klan to STOP when they were in office.

    February 17, 2009 11:43 am at 11:43 am |
  13. Pat, CA

    Dean in Florida February 17th, 2009 11:21 am ET
    How about helping people who aren't stupid or greedy . . .
    I've never missed a payment. I've never been late with a payment. I've paid all of my taxes.
    I've done everything correctly. Where is my reward?
    ----------–

    YOUR reward will be to pay . . . and pay . . . and pay . . . for the "stupid" and "greedy." Really pays be be personally responsible, doesn't it ????????????

    February 17, 2009 11:44 am at 11:44 am |
  14. Chris

    Again, where was GWB and the republicans great ideas when this whole mess began. You had your turn now step back and let a real man lead us out of this mess.

    February 17, 2009 11:48 am at 11:48 am |
  15. AnnMM

    I live within my means and I'm sick and tired of bailing out the stupid and greedy.

    February 17, 2009 11:48 am at 11:48 am |
  16. The lonely Libertarian of Liverpool

    I'm loosing track is this part of the Bailout III plan from the new treasury secretary, or something else on the side to add to our debt?
    How many bailouts are the America taxpayers going to have to pay for going forward for several generations?
    The American citizen is being systematically enslaved.

    February 17, 2009 11:50 am at 11:50 am |
  17. Rachele

    In the meantime, My mother, as well as countless others has already lost their house, and there are now 8 of us living in one apartment.... but hey, I guess you cant help us, you can just take more of our money and give it to someone else so THEY can keep THEIR house.
    Thanks

    February 17, 2009 11:50 am at 11:50 am |
  18. DebM, Allentown, PA

    Dumas, seriously? The stock market tumbled because of the BILL??? J

    You don't think that maybe the stock market tumbled because of the California budget crisis? Or the fact that GM indicated over the weekend that they'd be going into bankruptcy without additional funds? Or any one of a myriad number of global economic warning signs?

    You Rush devotees continually prove what total numbskulls you truly are.

    February 17, 2009 11:50 am at 11:50 am |
  19. kevin

    Time to stop being responsible? I wonder if I should stop paying my mortgage payment hoping that a judge will lower my principle? (for all the Obama voters, principle is the amount you owe on your mortgage) Thanks for screwing the people that lived within their means. If we have to do something, make mortgage rates a flat 4%. That way responsible people can buy these distressed properties instead of trying to keep the original owners in the house.

    February 17, 2009 11:51 am at 11:51 am |
  20. Danny in Chicago

    Way to go Obama! You know what you are doing and I trust you!

    Don't listen to CNN's paid bloggers (it's funny how they always appear right when a ticker comes out – THIS ONE EVEN HAD THEM POSTED AS THIS TICKER APPEARED) – they are paid to lie and stir things up!

    CNN doesn't care about you or this country – they just care about ratings and money!

    And John King is a tool and a poser!
    Blitzer is a sell out

    OBAMA IS SMARTER THAN ALL OF YOU!

    You're not going to win these tactics!!!!

    Come on boys-keep up! You're fallin behind!!!!

    February 17, 2009 11:51 am at 11:51 am |
  21. Ian

    I don't know why this isn't getting the full focus of our tax dollars instead of wasting the money on projects that won't effect our economy for decades, if ever.

    Face it folks, the housing crisis is what started this mess. Loans were given (and taken) recklessly, and housing prices inflated to unrealistic levels. When the bubble burst, billions of dollars in defaulted mortgage loans brought the banking industry to its knees. The result: no more credit for anyone.

    There are three groups to blame, and I'm all for holding them accountable: greedy lending organizations who set aside responsible lending for a gamble at big profits; greedy individuals who took loans they couldn't afford simply because it was offered to them; and corrupt politicians like Chris Dodd and Barney Frank who stood in the way of any government oversight.

    However, we need to fix the problem first, and the best way to address it is for the government to simply buy up these mortgages. The loans can then be restructured to something affordable, even if it ends up being a hundred-year loan at 2% interest; the banks can write these things off their balance sheets and get credit moving again; and most importantly, we have something TANGIBLE to show for the money. We, as taxpayers, will own these houses; money will be flowing in from them; and when they're finally re-sold or paid off, we can recoup all of our money plus a little profit.

    If you want to kill a weed, you attack the roots, not the leaves. How many houses could we have bought so far with the money from two stimulus packages and a bailout plan?

    February 17, 2009 11:53 am at 11:53 am |
  22. Paul Malinsky

    A trillion here, a trillion there. It's only money. Except no one knows there's no money to pay for all this. Government interference will destroy our economy for years to come with inflationary effects of all this "help".

    February 17, 2009 11:55 am at 11:55 am |
  23. mike

    I might as well stop working, stop paying taxes and stop paying my mortgage. I guess under Obama, I would be better off not being productive. This administration is a JOKE.

    February 17, 2009 11:56 am at 11:56 am |
  24. JJ12345

    Hopefully he says more than Guitner.

    February 17, 2009 11:59 am at 11:59 am |
  25. A little sad

    Hopefully the plan will help stop the continued erosion of property values that impact even those of us who are current and paying their mortgages.

    I don't want a wholesale bailout of every delinquent homeowner, but the property values are going down where ever foreclosures are happening at an even faster rate than in areas not impacted.

    I hope that at the minimum, the taxpayers get a share of the increase in value when the home is eventurally resold. (And that they are included on all insurance policies as one of the payees.)

    February 17, 2009 12:01 pm at 12:01 pm |
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