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. Flat-earther, Georgia

    Ah, a new team of profiteers at the public feed trough.

    It looks like the elected ones are in competition to see who can spend the most tax dollars the quickest.

    I am not sure we will survive.

    February 17, 2009 12:02 pm at 12:02 pm |
  2. James, Ho. TX

    Govrnment should buyout mortgags from Lenders with early payout penalties to banks, etc.; Owners keep their property titles, Cities and Counties continue to Tax said properties; Home Owners pay back the U.S. Goverment thru I.R.S. payments.
    Thus Banks and Lenders aquire their monies, Home Owners keep their properties, Cities and Counties continue with Tax Revenues, The I.R.S. contiinues to collect monies due the Government.
    Employment and Business should thrive in a positive direction !

    February 17, 2009 12:08 pm at 12:08 pm |
  3. Martha from Tacoma

    Come one people, Obama is trying to fix everything. It is complicated, I doubt you could do it better. It is time to try new, different and more. Our taxes are low compared to many countries. It is time to pull together for the common good. Boo to republicians...intolerant cry babies.

    February 17, 2009 12:11 pm at 12:11 pm |
  4. Alan

    It seems to me that none of Obama's plans have details. Their standard anwser is we have a plan, but we are not releasing any of the details.

    The stock market sure seems to be impressed with Obama's "plan" so far – down 250 just today.

    Face it folks – we have been hosed by another lying S.O.B. !!!!!

    February 17, 2009 12:13 pm at 12:13 pm |
  5. jaye

    Wonder if John McShame will be present?
    Of course he won't be – he'll be in one of his 9 mansions cooking up a plan to stop Obama at all cost.

    February 17, 2009 12:16 pm at 12:16 pm |
  6. Mickie

    TO: Dean in Florida – for your information not everyone who lost their home were neglectful in buying within their means. Many of them have lost their jobs and/or have been hit with unexpected high medical bills not covered by these rich insurance companies who are getting $$ from the government and numerous other reasons. I'm glad you can feel so self-righteous - you must be a repubilcan. Even Romney is having to unload 2 of his mansions, maybe he should have planned better.

    February 17, 2009 12:16 pm at 12:16 pm |
  7. Nick

    You Republican followers are stupid, selfish, hateful, totally lacking in compasion. Looking at the comments here, I bet none of you do any kind of chariable work or donation. Your kind end up ruining any Nation and will also end up down below, where it is extra extra warm.

    February 17, 2009 12:18 pm at 12:18 pm |
  8. Rick

    Can we impeach Obama before he does any more damage to the country?

    February 17, 2009 12:18 pm at 12:18 pm |
  9. Scott, Tucson

    This is happens when you force banks to give home loans to those who can't afford them, many to illegals here in Arizona and when things get tough, they skip back cross the border. Remember this state was rundown by your very own Secretary of Homeland Security "Janet Napalitano".

    If Obama was really serious about stimulating the economy than simply eleminate the payroll tax deductions and let the American people do the stimulating, not the Bozos in congress.

    February 17, 2009 12:18 pm at 12:18 pm |
  10. Obama 2.0

    And all the GOP can do is cry Ricohlaaaa, (Austrian Economics)

    February 17, 2009 12:19 pm at 12:19 pm |
  11. Noah

    This is the exact plan that MCCAIN came u with during the election and Obama and other liberal knuckleheads said was a terrible idea. It is just like the Democrats to steal Republican ideas and claim them for their own.

    February 17, 2009 12:24 pm at 12:24 pm |
  12. I.O.U.

    Another problem. Another reason for spending.

    February 17, 2009 12:25 pm at 12:25 pm |
  13. Hammer

    I guess everyone has forgotten what got us in this mess.
    Remember it all started because the government mandated that banks give loans to anyone and everyone. Now the deal is that we are going to make their payments for them. That is not socialism?

    February 17, 2009 12:27 pm at 12:27 pm |
  14. Diane

    Here's the solution to the foreclosure crisis – every lending institution will refinance mortgages at a lower FIXED rate of interest, for a longer period of time. This will allow the homeowner to afford the payment and the lending institution still gets their money/profits. It is that simple. So the question becomes, why haven't the lending institutions done that. The answer – GREED. Time for the government to force the issue – eliminate any variable rate mortgages and allow only fixed rates.

    February 17, 2009 12:28 pm at 12:28 pm |
  15. yuri

    Erstwhile home owners, simply, can not wait to hear news of some respite from the current crisis.

    February 17, 2009 12:31 pm at 12:31 pm |
  16. Steve from Jamestown, New York

    I agree with Danny in Chicago when he talks about paid bloggers stirring things up. They definitely do as do alot of some of the regular on airs there. You then can tell when it is a news story not panning out in flash and bombastic form like they want it to. Then what happens as seems to do in many media forms, the news reporters almost seem like they want to go beyond their function and become part of the story themselves. They are reporters, readers. Is it THAT important that they also become part of the story of another separate story unto themselves. Not very responsible journalism to me. Though I will say that CNN is mild as compared to that other one that claims to be fair and balanced. Fair and Balanced when you have the likes of O'Reilly, Beck, Hannity, Morris, so on and so on? Hardly.
    Report the news of the stimulus plan, accurately. What happened to the national debt level when Reagan took office first and what was it when he left office? The GOP wants the same approach. ALSO...remember when W wanted to put Social Security money into the Stock Market? Glad they did not let that clown do that.
    Email, write, phone, whatever it takes...let our reps. know ideas that we have to solve this problem. Let's participate as a whole to make this wrong become a right.
    Have a GRRRRRREAT day America !!!

    February 17, 2009 12:31 pm at 12:31 pm |
  17. Mike, Syracuse NY

    it was people buying more house than they could afford that started this along with banks making loans to those who couldn't afford them. The loans need to be allowed to fail, a new housing market equilibrium will be reached, and we will move on. Those banks and people who acted irresponsible will get the 'deal' they deserve- bankruptcy.

    February 17, 2009 12:32 pm at 12:32 pm |
  18. MK

    OK after he fixes the housing, when do I get my free gas and free edumacation, and free welefare?

    February 17, 2009 12:32 pm at 12:32 pm |
  19. elsie

    I suppose it is President Obamas fault also that Donald Trump filed for bankruptcy and Mitt Romney has to sell two of his mansions and the SEC just raided another Billion dollar Ponzi schemer in Houston a couple hours ago. Please post your ideas on how to get us out of this mess.

    February 17, 2009 12:34 pm at 12:34 pm |
  20. Margaret

    Next on the agenda: The Fairness Doctrine; Amnesty (they need the additional tax dollars); and healthcare. Want to fix healthcare? Put Congress and all federal employees out on the street to shop for their own.

    And the last ugly item on the agenda: nationalize your 401K and pension so it can be shared with everyone, in one big pot. Not to worry. They'll send you a $600 check once a year. Wish I was kidding.

    Why is government not talking about cutting back? This is what is eating up the tax dollars. Lay everyone in the government off for 2-3 months. You will be amazed at the savings.

    February 17, 2009 12:35 pm at 12:35 pm |
  21. David

    For a foreclosure plan to be effective, Obama should ensure the bailout money is not given directly to banks, rather it be given directly to distressed homeowners.

    If money is given to Banks, it will be all gone in bonuses, luxury, travel, private jet rides and vacation at exotic resorts for high officials.

    Unfortunately, we don’t have enough regulations to audit and control these Banks.

    February 17, 2009 12:38 pm at 12:38 pm |
  22. Tom in Delaware

    How's that investigation into Fannie and Freddie going?!?

    How's the ehtics probe into Chris Dodd and Countrywide going?!?

    What's the word on Charlie Wrangel....Thunderbird?!?

    Somebody tell Bill Clinton he did help cause this mess (and his zipper was up!)

    Why do we need THREE bills to finally start plugging the hole that caused this disaster?!?

    I'd wish that Air Force One would crash and burn except that good Air Force personnel would be harmed and then Pelosi would be president...what a nightmare.

    February 17, 2009 12:39 pm at 12:39 pm |
  23. Margaret

    In fact, lay off Congress for 2-3 months and watch the economy fix itself.

    If you haven't figured it out by now, they will not stop until the entire country, AS WELL AS EVERYTHING YOU HAVE, is in their hands.

    Take a look at the stock markets worldwide today. They are in the toilet because they have NO FAITH in our government.

    Most of the idiots voting for change have no idea this is going on; and the rest are still waiting for Obama to cover their car and house payments. Not long to wait now!

    February 17, 2009 12:42 pm at 12:42 pm |
  24. Tracy G from PA

    For all you Idoits that are already downing our President,


    February 17, 2009 12:50 pm at 12:50 pm |
  25. Debbie

    I would like to make a point that while unfortunately there are cases of people just living beyond their means, there are MANY of people being DUPED into these problems. Did anyone happen to catch 60 minutes this past Sunday. If not go to the website and watch video on this. So many people (many elderly) were tricked into being told this was the BEST THING FOR THEM and then they had the rug pulled out from under them. These people need help and unfortunately there will be some people (just like with welfare) who simply are abusing the situation, but we cant turn our backs on the people who REALLY need help.

    February 17, 2009 12:50 pm at 12:50 pm |
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