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. Rodney

    What I don't get is, How can a country rally around an African American who will lead them in any sport whether it's college or pro to a championship, but we can't rally around one who is leading our country. What's wrong with that picture. Give the man a chance and let him do his job. Just like we have done in the past with every president before him.

    February 17, 2009 12:51 pm at 12:51 pm |
  2. Sandra

    Hopefully the "loan Modification" won't be a decrease in the principal balance. The only "fair" way is to extend the life of the loan, fix the interest rate to lower the monthly payment. People who are upside down in their loans need to be able to refinance. But in the end if someome borrowed 500,000, then they need to pay back 500,000.

    February 17, 2009 12:51 pm at 12:51 pm |
  3. Peggy - TX

    Obama continues to exceed all expectaions. In his first few weeks in office, he has already accomplished a great deal toward fixing the mess the last administration got us into. The Pathetic Republicans are sitting on the side lines, blocking every effort to right this sinking ship of an ecomony, and hopping that the ecomomy fails as thet put thier own shady agendas above the wealfare of the American people.

    February 17, 2009 12:52 pm at 12:52 pm |
  4. HonestMistake

    What is the definition of "responsible homeowner."

    February 17, 2009 12:53 pm at 12:53 pm |
  5. WW

    Dean in Florida...just pray that you are not added to the millions of unemployed so you can continue paying your mortgage on time for another 12 years. You don't get it. Some responsible Americans are behind in the mortgage payment because they have lost their job and the unemployment keeps growing. From what I hear the average american get for unemployment its not enough to pay a mortgage and this is totally out of their control.

    So before you speak so negative about others that are behind on their mortgage ...THINK, because the average american is one pay check away from being BROKE. Have a Heart!

    February 17, 2009 12:55 pm at 12:55 pm |
  6. J

    I`m sure the NO Party ( Republican) won`t be represented at the signing. – They don`t like anything they cannot accept MOST of the credit for.

    February 17, 2009 12:56 pm at 12:56 pm |
  7. Ian

    Can anyone explain why it's acceptable to take money from someone who rented a place to live and give it to someone who bought a house they couldn't afford?

    Can anyone explain why it's acceptable to take money from someone who rides the city bus every day to work, and give it to failing auto manufacturers?

    February 17, 2009 12:59 pm at 12:59 pm |
  8. Ian

    "February 17th, 2009 11:48 am ET

    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."

    You know Obama's doing the exact same thing as Bush right?

    February 17, 2009 01:00 pm at 1:00 pm |
  9. Jackie in Dallas

    There are a lot of people who are affected by the crisis in the real estate/mortgage market than those who were in ARMs. I have a 30-year VA-backed loan, for which I went through a strenuous credit raking over. Due to the recession in the technology field (which, by the way, started in telecom in 2001, even before 9/11), I've almost lost my home twice.

    It would have been nice to have some mortgage help in doing some refinancing or adding payments to the end of the loan rather than have Countrywide just try and dump me. I nearly bit my tongue when I saw they had their hands out to the Fed - no help for me after nearly 20 years of payments on my mortgage, but they just HAD to have money from the Fed, but then got bought by BofA. Hypocrites!

    February 17, 2009 01:01 pm at 1:01 pm |
  10. Citizen from NY

    I heard yesterday that if we did not have a stimulus package, the economy would have straightened itself out by about mid-summer. I heard that now that we have a stimulus, the market will take much much longer to recover. And I still say, "F" the trade balance, repeal NAFTA and CAFTA and bring our jobs back home and let's have "Made In the USA" again.

    February 17, 2009 01:01 pm at 1:01 pm |
  11. mike jones

    God help us.

    February 17, 2009 01:03 pm at 1:03 pm |
  12. Linda in MS

    This not just about ill-informed or greedy people who can't make their mortgage payments anymore. People are losing their jobs by the thousands every day, are bankrupted by catastrophic illness or other problems. I watched 60 Minutes Sunday and was shocked at the banking industry's aggressiveness in procuring second and third mortgages from people they knew couldn't or shouldn't qualify. I paid cash for my house and have zero debt and I have been hounded by these sharks for the last four or five years. They are maaking money off of the new fees, higher interest and if the borrower can't pay, take the house back.. it was a grand scheme while it lasted.

    February 17, 2009 01:04 pm at 1:04 pm |
  13. Melissa

    Unfortunately this is needed. I imagine McBush is having a childish hissy fit sitting high on the hog in one of his luxurious mansion retreats.

    February 17, 2009 01:04 pm at 1:04 pm |
  14. Turning the page

    Funny how the Wall Street empty heads keep complaining about Obama's economic plans. These empty heads destroyed our economy and now they're trying to convince us they know or mean better than the Economist -in-Chief. I'm soooo glad Wall Street doesn't like the President's economic plans so far – that's a good sign for Main Street and Main Terrace.

    Enough with the greedy speculators already!!
    Enough with the cut taxes republican ideologues!!
    Enough with the trickle down bs!!

    Enough!!

    February 17, 2009 01:05 pm at 1:05 pm |
  15. Obama Victim

    well......this guy will make the Jimmy Carter economy look good...........the good news is that it is 4 and out for this loser

    February 17, 2009 01:05 pm at 1:05 pm |
  16. Greg Pottstown, Pa.

    So people don't pay for the house they bought and instead pay a % of their income. Dose anyone see a problem with this. Will this not hurt the mortgage lender. Or will the taxpayers foot the bill for people that can't handle the payments they agreed to make when they got the loan. I am only 26 but I have 3 mortgages and I own two houses and some how I was able to tell if i could afford the payments I agreed to make. Am I that much smarter than the rest of the country? The wife and I take home less than $80.000 a year Including rental income from our first house. The reason that we are in this mess is because the banks should never have given those people the loans in the first place and the people should know that they can't afford a home. For all you bush haters, the fact is that bush tried to regulate fanny and fredy but was filibustered by a dem congress including a certain junior senator form IL.

    February 17, 2009 01:06 pm at 1:06 pm |
  17. Steve (the real one)

    Anybody actually think the first $700B , in addition to this $789B is the end of it? Sorry your wrong! More of our money will be foolishly spent and the change you can believe in will be the nickle and dime you have in your pocket after you have held up by the government! Before you whine, this includes the Clinton, Bush, and Obama administrations!

    February 17, 2009 01:06 pm at 1:06 pm |
  18. gt

    dont worry freinds ole nancy will be in you back pocket taking away your money to help some people who knew better,,,,,your bet we are seeing change ,,,ugh

    February 17, 2009 01:06 pm at 1:06 pm |
  19. Debi

    AZ.... isn't that where 2 republican senators that voted no on the stimulus bill are from?

    Obama needs to stay out of the states that do not want stimulus. The republicans (especially McCain) have showed their bipartisanship.

    Chris from NY: The only read about 1/4 of the bills that come before them. That is why this country was talked into a war.

    February 17, 2009 01:06 pm at 1:06 pm |
  20. Simpliticus

    What was Obama to do? If he did nothing, he would become George W. Bush and look at what he has done to bring all of this into existence? And there is now every indication that Bush knew at least a year ago that this was coming and he expected that this would occur on the next president's watch and not on him, a kind of time bomb of destruction which he allowed to spawn! What man would take a surplus that was given to him by President Clinton and incur a ten billion dollar deficit over the intervening eight years! In physics it is known that water and oil do not mix and by revolving said "mixture" backwards will produce the original admixture and that is what the Obama administration should do to ascertain what these idiots were attempting to do by creating this fraud in the first place. Obama is doing what he can!

    February 17, 2009 01:07 pm at 1:07 pm |
  21. Lilarose in Bandon, Oregon

    Whatever is done, DO IT QUICKLY!

    Every minute a family is forced out of their home through foreclosure.

    By the time any program is approved, it will be far too late.

    February 17, 2009 01:07 pm at 1:07 pm |
  22. jd

    Wow now we have the Pide Piper Obama coming to save the day. Spending more money is not the answer. Tightening the belt and making people work for what they ear is a better answer. There are jobs out there than can be created for those who choose the welfare roll. And yes I said choose.

    February 17, 2009 01:09 pm at 1:09 pm |
  23. Greg Pottstown, Pa.

    kevin,

    Thank you!!!!!!!!!!!!!!!!!!!!!!!!!! Maybe they can lower our payments too. Wait,we work for a living, never mind!!!!!!!!!!!!!!!!!!!!

    February 17, 2009 01:09 pm at 1:09 pm |
  24. daniel cabrera

    Here is the thing;
    Now that the SPENDING PACKAGE ('stimulus') is for the 'go' , it will do as, by logic is/was deisgned to do; TO PERPETUATE THE CORRUPTED MALPRACTICES BY THE ORIGINALS CROOKS AND THIEVES AT WALLSTREET THAT START ALL THIS, BACKED BY 'THE COVER-UP GROUP' (Barney Frank, Reid,Pelosi,Cox,Dood,....and others weeds) This will continue until 'kindom come' – sort of speak

    Truth is that eventuually the economic grid will come back on track and Obama and his gang will claim 'SUCCESS' to this so called 'stimulus'. WE ALL HAVE TO REMEMBER AND UNDERSTAND THAT ECONOMY SHOULD BOUNCE BACK AS NORMAL MARKET-DEMAND AND CREDIT CASH FLOWING MOVEMENT FOR THAT IS THE ALWAYS DYNAMICS IN THE ECONOMY SPECTRUM....IT IS A REGULAR AND NORMAL CYCLE AND HISTORY GIVES LIGHT INTO THIS.

    But Obama and his gang will try ( ooohhh!! THEY WILL TRY ALRIGHT !) via SPLENDOROUS OBAMA-ELOCUENCY MIND PSEUDO-HYPNOTIC WAYS (just like using an enema ...like in the past campaing before the FRAUDULENT ELECTIONS) to feed into the public that is because his leadership.

    AND CHANCES ARE THAT SOME OF THE PEOPLE MIGHT JUST EAT IT.

    Hey! Obama and his gang are DRYING ! the taxpayer money reserves. WE NEED BETTER, HONEST AND CONCIOUS LEADERS AT HELM! The current administration is not good.

    sincerely,
    DC,Merrillville, IN

    February 17, 2009 01:09 pm at 1:09 pm |
  25. Beverly, NYC

    As an Obama supporter I have an issue with any bill that rewards stupidity. How about some personal responsibility? If you used your home as a piggy bank to buy imported flat screens and other crap, you deserve to be out of doors. If you lived like Angelina and Brad, on your soda budget you deserve to loose your home. If you spent 250,000 on a party because your brat turned 16 you DESERVE a hard lesson, because you forget the simple principal thought to us by our elders, if it seems too good to be trust it probably is. Some of us are renters and others are 5 bedroom house people, grow where you're planted.

    February 17, 2009 01:10 pm at 1:10 pm |
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