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. Anonymous

    Danny in Chicago are you for real??? Paid bloggers? Even CNN wouldn't stoop that low. Now, as for the typical, same as usual, Chicago political machine, why are you so upset about that? Its just business as usual, Chi-Town style! I don't give a crap about people's foreclosure – if you weren't so greedy to have purchased a home you couldn't afford in the first place, I sure as hell so understand why I have to bail you out! I'm sick of my tax $$ going to handouts!

    February 17, 2009 01:48 pm at 1:48 pm |
  2. why didn't you think of that before, geithner,

    when you and your wall-street neo-con buddies were stealing left and right

    from the working men and women?

    you thought your crimes against humanity would never catch up with you, eh?

    February 17, 2009 01:49 pm at 1:49 pm |
  3. Vic

    For those who say they live within there means and/or tired of supporting stupid or greedy people. Either you are morons or just out of touch with our current economy. It's easy to say you live within your means when you haven't been laid off(YET). You all listen to way too much right wing radio. Your party is dying a slow sure agonizing death. Everyone in this situation has his own story, take the time to get all the facts before posting your one way rhetoric...GET REAL!!!

    February 17, 2009 01:49 pm at 1:49 pm |
  4. Obama's a Liar

    Obama is "tight lipped" about the housing bill. He's given up on transparency already.

    February 17, 2009 01:49 pm at 1:49 pm |
  5. susie

    Next time there is an election, I will vote for the person who knows how to read. These idiots we have now don't know how to read, meaning they never read the stimulus bill.

    February 17, 2009 01:51 pm at 1:51 pm |
  6. Matthew, Detroit

    More Money More Money More Money.

    President Bush 8 years. 2.5 Trillion added to the national debt.
    President Clinton 8 years 1.7 Trillion added to the national debt.

    Barack Obama 2 year estimate 350 billion (TARP) 800 Billion (Stimulus) 1 Trillion (banking) 50-100 billion (Mortgage) Nominal budget 2009 1 Trillion. Grand Total = 3.2 Trillion.

    4 year estimate 6 Trillion in additional NATIONAL DEBT.

    I WISH BILL CLINTON WAS HERE. At least he was not naive.

    February 17, 2009 01:52 pm at 1:52 pm |
  7. JS007

    Kevin, it's spelled principAL. I like what Obama is doing: Sheila Bair is one of the few regulators who saw this crisis coming and tried to do something about it so I trust her plan. The only way to slow foreclosures is to reduce people's often-ridiculously-high payments. Banks should then have to take part of the hit on the principal reductions.

    February 17, 2009 01:53 pm at 1:53 pm |
  8. Regular People

    When Bush treated our National Treasury like he was some kind of drunken teenager with dad's credit card, I never once heard the word "pork".

    Now the second that we try to spend money in a different way, and hopefully a more constructive way, all I hear is the word "pork".

    Well, I'll tell you something...

    The fastest way to lose credibility in my household is to complain about "pork".

    February 17, 2009 01:54 pm at 1:54 pm |
  9. Matthew, Detroit

    Barney Frank and Chris Dodd both Democrats refused to stop Fannie Mae and Freddie Mac. They refused to change it. IT IS A FACT. Go On YOU TUBE and watch the CHICKEN LITTLE SKY IS FALLING video and statement by Barney Frank. He would not stop it.

    This was a push to allow poor people to buy housing.
    People with 540 credit scores were given 95 and 100% loans.

    Now if you paid your mortgage you get nothing.
    If you did not pay your mortgage you get money.
    LET THE MARKET CORRECT ITSELF. STOP SPENDING.

    February 17, 2009 01:58 pm at 1:58 pm |
  10. NY republican

    Dean in Florida – isn't $13 a paycheck enough? I'm surprised did you donate to the campaign and expect more in return for the donation?

    February 17, 2009 01:58 pm at 1:58 pm |
  11. lynn

    There are people who have lived within their means and lost their jobs and in turn lost their homes. Good people. One thing affects another. If Obama is trying to help people then good for him. Stop trying to condemn the man and see what his plan is. With the way things are it could happen to any one of us at any time. We all need to pull together.

    February 17, 2009 01:58 pm at 1:58 pm |
  12. AndyL

    Thanks Obama, after all the spendulous bill, bailout etc. The rest of us working people will be left supporting every deadbeat in America.

    February 17, 2009 01:58 pm at 1:58 pm |
  13. In Houston, TX

    When Bush was president, there was hardly ever a spending bill that he didn't like and sign. The one spending bill that he did threaten to veto was the Childrens Health Insurance Program. (S-CHIP: providing health insuranct to poor kids)
    Why is it that republican can find the way means to fund wars and cut taxes for the rich, but they never want to invest in the American people? They never want to help people. They are the champions of the businessmen of America. They are always talking about them and the 'The People' come second or not at all.
    Now we have an administration that has the desire to invest in the American people and our infrastructure and GOP is fighting it tooth and nail. We are in the midst of an emrgency and something needs to be done. The GOP has no alternative to the Dems plan and they still want to stop progress.

    I can predict the future like Cleo the Psychic!

    This is a losing move for conservatives and 2010 elections will prove this. If you thought they had a small minority in congress now, their numbers will be even fewer in 2010. They are killing themselves and don't even realize it

    February 17, 2009 01:58 pm at 1:58 pm |
  14. boered1

    Most of you people have no idea what it is like! I bought a reasonably priced homne four years ago, less than $150 K, my salary was (and is) greater than 70K. Early last year I transferred to a different state (from Ohio to CO) the forclosure was just starting and Ohio was pretty hard hit, when I called realtors they literally LAUGHED there was no way I could sell my house for even 60% of what was owed! I had put 20% down, I have made my payments every month on this house, the interest rate is at 6.5% but right now, because I owe more than the house is worth ALL my credit cards have jumped to 33% (I have not missed a payment but because my cost to income ratio is so bad right now they could raise my rates) I cannot buy a car (my mid 90s Jeep is dying slowly) my son lost his job ( a pilot) and, since I co signed for his education and car, I am having to pick up his bills. So I am paying for two houses (rent and a mortgage) my credit is terrible (due to house being worth more than I owe and my son missing payments on his bills) I am covering two households worth of bills, my car is dying and you people are saying that I HAVE DONE SOMETHING WRONG?!? That the problem is because of people like me?! HOW DARE YOU! My savings are GONE, I am looking at losing a house (that my daughter is living in because she cannot afford to rent one) and you people tell me that this is my fault? the facts are this is needed, not just for those who made bad choices but to the rest of us also since right now the loss in the value of the home by a fool is costing me. So by bailing him out they are helping me.

    Idiots

    February 17, 2009 02:04 pm at 2:04 pm |
  15. Matthew, Detroit

    JAYE,

    PLEASE GET YOUR FACTS STRAIGHT ON MCCAIN.

    I am not a fan of the guy what so ever. Dont like him and dont agree with his politics. He is weak, very moderate, does not stop the illegals, is not politically conservative financially or socially. He really is an independent much like others outside the traditional parties.

    Get the housing thing straight. He owns 10 houses. Many are rentals or investments. They are not mansions although he does have an estate. Most of the money comes from his wife who is quite rich.
    Now bash Edwards who lives on an estate. Gore who lives on an estate. Barack who bought a house at 25 cents on the dollar from Tony Rezko a criminal.

    Please do some research, use google and read the full articles.

    February 17, 2009 02:05 pm at 2:05 pm |
  16. Johnny

    The rich (most of them) didn't get rich by being lazy. They worked hard, they said no to crime and drugs, and they earned their positions atop companies and in fancy neighborhoods. Maybe they don't work hard now, but most of them got there honorably.

    So why do we continue to punish the successful and the responsible over and over again to pave the way for rewarding the lazy and irresponsible and greedy? The foreclosed are the greedy here, not the rich. The foreclosed are the ones who spent outside their means and didn't budget. The stupid shouldn't get bailed out.

    February 17, 2009 02:07 pm at 2:07 pm |
  17. Indigo

    It is really sad to me that a nation that was supposed to be so great at one time has created such idiots and self centered individuals. I know this is going to be over the heads of most of you. but it doesn't matter how responsible you have been or what ever happened in the past. "No man is an island unto himself". We are all going to be affected if the economy tanks or when under president Obama things improve. I know there are some states where people are not the brightest, but I didn't know there were so many of them. but at any rate, I hope we can see as many people admit they were wrong when President Obama and the democrats by the grace of God bring the nation up out of the ashes. Those of you who can will have much more success praying for the nation and the president than you will with all the evil vitriol.

    February 17, 2009 02:09 pm at 2:09 pm |
  18. RP

    How about we lay off all of congress...put agenda items to the vote of the people....this way we know what the people want vs politicians agenda.

    February 17, 2009 02:09 pm at 2:09 pm |
  19. Laverne

    President Obama is trying to fix the mess, he did not create the mess nor is he just doing these things just because he can. Why don't some of you write a thank you letter to George Bush for the mess that he has gotten us into and a thank you letter to President Obama for trying to get us out of this mess!

    February 17, 2009 02:11 pm at 2:11 pm |
  20. sonia G.Waltenspiel

    Regarding the housing problem I belive that the every case is different, However don't forget that the economy will be better if every house owner if needed could lower the mortage payment , thus it will be more cash flow. Also it will compensate the property value that our homes have been lower due to the folcolosures in their neighborhoods . will this be extra cash flow? sonia

    February 17, 2009 02:16 pm at 2:16 pm |
  21. Georgia Williams

    Memo: On Jan,20 09, we inaugurated a new President. The office is due respect, and it would be nice if CNN would show that respect by stop using OBAMA,BARAK,etc, and use instead PRESIDENT, OR PRESIDENT OBAMA. It is widespread and should be addressed. Even the political Ticker continues to do this.SHOW SOME RESPECT.I don't recall any newscaster ever refer to our past President as George or Bush.

    February 17, 2009 02:18 pm at 2:18 pm |
  22. Todd

    Thank God Obama – and anyone on his staff – don't have to worry about paying taxes! Maybe if they did, they'd stop taking money FROM those of us actually out there trying to work! I mean, the way this is going, I'm going to quit my job, knock up the wife a few more times, and start going anywhere and everywhere I can with my hand out!

    "Change" isn't always for the GOOD!

    February 17, 2009 02:19 pm at 2:19 pm |
  23. Karen- Change is coming

    This man has been President for 3 weeks and look at what he's doing. He's kicking butt and taking names unlike the Republicans who sat on their hands for 8 years. Let's see my President has push a stimulus plan, sign to shut down that touture chamber, putting in a bailout for housing, not to mentioned taking his fight directly to the American people who hired him. Republicans still don't get it but they will in 2010. Let's vote to kick the rest of the Republicans out of Congress so we can turn this country around.

    February 17, 2009 02:22 pm at 2:22 pm |
  24. Karen- Change is coming

    @ the idiot.. You are a idiot... we are already in the whole (trillions I might add, and this was the direct result of the Republicans. Republicans still don't get it.

    February 17, 2009 02:25 pm at 2:25 pm |
  25. Patrick

    I really want to thank Barrack Obama! I bought a house with no money down that I couldn't afford and didn't have the credit to get, and is now in foreclosure. But I get to keep my house because Obama is taking the money from hard working Americans and making my rates and payments a lot lower.

    I'm so glad I get to live in a country that rewards failure and punishes success! Thanks Barrack!

    February 17, 2009 02:33 pm at 2:33 pm |
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