Feb 18, 2009 1:56pm

Obama’s $275 Billion Plan to Stem Home Foreclosures

In an effort to stave off the mortgage crisis, President Obama unveiled his Homeowner and Stability Plan in Arizona today, which ranks third in states hit hardest by foreclosures. Last year, one out of every 182 homes in the Grand Canyon state faced foreclosure.

The cost of the president’s plan –- $275 billion total, including $200 billion in funds previously allocated for troubled government lenders Fannie Mae and Freddie Mac — was larger than expected, but it’s an investment that Obama defended as necessary today at a high school in the suburbs of Phoenix. He said the plan would help not only an estimated 7-9 million Americans directly but the nation as a whole.

“All of us will pay an even steeper price if we allow this crisis to deepen -– a crisis which is unraveling homeownership, the middle class, and the American Dream itself,” Obama said at Dobson High School in Mesa, Ariz. “If we act boldly and swiftly to arrest this downward spiral, every American will benefit.”

At the onset the president made sure to delineate who would not be helped by this plan.

“It will not rescue the unscrupulous or irresponsible by throwing good taxpayer money after bad loans. It will not help speculators who took risky bets on a rising market and bought homes not to live in but to sell. It will not help dishonest lenders who acted irresponsibility, distorting the facts and dismissing the fine print at the expense of buyers who didn’t know better. And it will not reward folks who bought homes they knew from the beginning they would never be able to afford. In short, this plan will not save every home," he said.

At a briefing, Treasury Secretary Timothy Geithner echoed this sentiment, “It won’t reach all home owners, it won’t prevent all foreclosures and it can’t really help a range of people who got themselves in a position where they had just borrowed way, way beyond their means.”

The goal of the plan — for those who are working hard and are still having a hard time making mortgage payments — aims to benefit between seven and nine million families by restructuring or refinancing mortgage to avoid foreclosure.

First, the plan will give homeowners that are “underwater” (those who owe more on their mortgages than their home is worth) the possibility to refinance their mortgages at lower rates.

Obama’s plan will remove the restrictions on Fannie Mae and Freddie Mac, allowing them to guarantee refinancing for mortgages valued at more than 80 percent of the homes worth.

“My plan changes that by removing this restriction on Fannie and Freddie so that they can refinance mortgages they already own or guarantee. This will allow millions of families stuck with loans at a higher rate to refinance,” Obama said, “And the estimated cost to taxpayers would be roughly zero; while Fannie and Freddie would receive less money in payments, this would be balanced out by a reduction in defaults and foreclosures.”

The White House says this could reduce monthly payments for up to five million homeowners. In a briefing, Housing and Urban Development secretary Shaun Donovan said the typical family would be able to save $2,300 a year because of this re-financing, which Treasury Secretary Tim Geithner said would act like a second stimulus package.

Second, the plan offers incentive to lenders to work with the borrowers to modify the terms of sub-prime loans at the risk of default and foreclosures.

“My plan establishes clear guidelines for the entire mortgage industry that will encourage lenders to modify mortgages on primary residences,” Obama said. “If lenders and homebuyers work together, and the lender agrees to offer rates that the borrower can afford, we’ll make up part of the gap between what the old payments were and what the new payments will be. And under this plan, lenders who participate will be required to reduce those payments to no more than 31 percent of a borrower’s income.”

This component of the plan includes a "Pay for Success" provision that would have the government rewarding lenders and lendees for abiding by the terms of this agreement.

At a briefing, ABC News asked Treasury Secretary Tim Geithner about the criticism of the president’s new housing plan, that it provides incentives for lenders and lendees to do what they should be doing anyway — making payments on time, and trying to stave off foreclosures.

"People tried other approaches to help fix this problem and they are not working," Geithner said. "So what we tried to do is put together a more powerful package of incentives and other, ‘inducements,’ I’ll call them, to try to make sure you get a level of participation and a level of relief in mortgage payments that has not been achieved … so this represents our best judgment of that and you have to look at those costs against the very substantial benefits this will bring to homeowners across America and to the overall economy as a whole."

A third part of the plan –- in an effort to keep mortgage rates low for families attempting to secure new mortgages — the Treasury Department and the Federal Reserve will continue to purchase Fannie Mae and Freddie Mac mortgage-backed securities to provide stability and liquidity in the marketplace.

“Through its existing authority, Treasury will provide up to $200 billion in capital to ensure that Fannie Mae and Freddie Mac can continue to stabilize markets and hold mortgage rates down," the President said.

Lastly the administration will pursue a wide range of reforms aimed at helping families in general to avoid foreclosure.

The administration will support reforming bankruptcy rules so judges can reduce mortgages on primary homes to their fair market value, as long as borrowers stick to the court-ordered repayment plan.

In addition, Obama will award $2 billion in competitive grants to communities that are bringing together stakeholders and trying out new ways to prevent foreclosures.

President Obama said that this plan, as the third part following the economic stimulus bill he signed into law yesterday and the plan for the financial industry announced last week, is an important step in helping the failing economy recover.

And Obama made one last pitch for personal responsibility — within families, businesses, and the government.

“Solving this crisis will require more than resources –- it will require all of us to take responsibility. Government must take responsibility for setting rules of the road that are fair and fairly enforced. Banks and lenders must be held accountable for ending the practices that got us into this crisis in the first place. Individuals must take responsibility for their own actions. And all of us must learn to live within our means again.”

– Jake Tapper, Jon Garcia and Sunlen Miller

User Comments

Let me know when Barney Frank and Chris Dodd take their portion of responsibility. I’m in as soon as they are. Until then, pound sand.

Posted by: Plumber | February 18, 2009, 2:11 pm 2:11 pm

O-dumb-ah got another theft by deception plan huh?
USSA (united socialist states of america)
arrest barney frank and chris dodd and maxine waters and u solve the fannie mae and freddy mac scandal

Posted by: DOH-bama Cabinet of Corruption | February 18, 2009, 2:13 pm 2:13 pm

CNBC:
The fed just announced they see no sign of recovery in the housing sector and no sign we will have an economic recovery in 2009.
Try again, Obama.

Posted by: Peach | February 18, 2009, 2:14 pm 2:14 pm

Plumber – LOL. Exactly.
The problem is that too many homeowners didn’t get the Rezko deal that Obama got so he’s giving them a second shot at the apple.

Posted by: Peach | February 18, 2009, 2:14 pm 2:14 pm

obama speaks and the markets dive again

Posted by: DOH-bama Cabinet of Corruption | February 18, 2009, 2:14 pm 2:14 pm

Yahoo! (not the company)
Do we cats get a living quarter as well?

Posted by: two cats | February 18, 2009, 2:16 pm 2:16 pm

How many more democrat sleaze ball scandals have to happen before the media holds the democrats responsiblie for this meltdown that began in 2006, when barney and gang took over

Posted by: DOH-bama Cabinet of Corruption | February 18, 2009, 2:18 pm 2:18 pm

“In addition, Obama will award $2 billion in competitive grants to communities that are bringing together stakeholders and trying out new ways to prevent foreclosures. ”
WHAT IS THE KEY WORD IN THIS SENTENCE…COMMUNITIES..IN OTHER WORDS…ACORN!!

Posted by: Tyrone | February 18, 2009, 2:22 pm 2:22 pm

Apparently this is the change we can believe in:
* The Dow at a 10-year low.
* A tax cheat running the IRS
* Another tax cheat as the Chief of Staff
* A trillion-dollar plus federal deficit
* Over one-half of voters relieved of any federal tax liability
* Government mandated limits on executive compensation
* Three failed attempts and still no Commerce Secretary
* Tom Daschle rides his free limo into the sunset – after paying taxes he evaded.
* The White House performance czar turns out to be a tax cheat also
* Lobbyists hired to work for the Obama Administration
* The census gets politicized
* Double government spending in one year
* The word “freedom” fades into obscurity
* Increasing home loan mortgage rates across the board
* Millions of Americans made dependent on government
* Moving unionization-by-intimidation forward
* Welfare checks become “tax cuts.”
* Illegal aliens free to work on taxpayer-funded “stimulus” projects
* Welfare reform reversed, states ordered to increase welfare roles
* Move to silence critical talk radio shows
* Selling Senate seats
* Obama books in religious sections of book stores
* More government workers, not private sector jobs
* A government bureaucracy to intrude on doctor/patient relationships
* Stage set for medical services rationing
* Annual welfare checks for middle income families

Posted by: Peach | February 18, 2009, 2:30 pm 2:30 pm

“We all have to learn to live within our means again.”
I’d like to see the Big Three automakers start living within their means by filing Chapter 11 petitions, rather than taking my tax money to subsidize the building of cars nobody wants to buy. I’d like to see the banks that lent money to people who couldn’t pay it back live within their means by failing. And I’d like to see the people who took out mortgages they can’t pay let the homes be foreclosed upon and placed on the market again, to be sold at a true market price to people who can qualify for a sound loan. Let the market clear…

Posted by: Fascist Hyena | February 18, 2009, 2:34 pm 2:34 pm

The markets went dive again today. What is going to happen next? That show that Obama doesn’t know how to do the job.
He has a ‘lack’ of both experience and
leadership.

Posted by: anonymous | February 18, 2009, 2:40 pm 2:40 pm

This is just a set of rules being assigned to recipients of already appropriated money. The only thing new about this is that there are rules attached to receiving the money. Under Bush, the only rule was grab as much cash as you can while continuing to screw the little guy.

Posted by: Flash Override | February 18, 2009, 2:51 pm 2:51 pm

Peach is right on all counts. Keep up your good work.

Posted by: pesiri | February 18, 2009, 2:53 pm 2:53 pm

Stemming foreclosures is not only a bailout to those who can not afford their loans or took irresponsible loans. The housing crisis has reached a point at which even responsible home buyers are losing money as the market deflates, affecting their peace of mind and the ability to sell their homes if say for example they found a much better job in a new place. Some lendees currently in trouble always paid in good faith but economic times are tough and may have lost their jobs. They deserve a chance to work through this tough time without further hardship. Construction companies are faced with many foreclosed homes on the market and are laying people off. Obama seemed to outline a number of good points to restrict efforts to stem foreclosure to those people that are in need, such as underwater lendees and only to those houses that are used as a primary residence. Refinancing the amount of mortgages and their intrest rate should be effective, without tying up government money in bad loans or foreclosed properties and is a less risky use of taxpayer money as a result. The only option that may have been ignored or rejected would be to increase the time period of loans, say from a 30 year loan to a 40 to lower payments by spacing them out. Some people who made irresponsible decisions may be rewarded by this plan, but the alternative is that everyone is punished by deflating home values and exacerbating the economic crisis.

Posted by: Ordermonger | February 18, 2009, 2:58 pm 2:58 pm

At the moment its looking like a pretty conservative plan. The refinancing assistance is smart – it is better to allow people to refinance and keep paying off their debt than to force them to just walk away and saddle the bank with the whole loss.
Likewise loosening the bankruptcy law a bit will, in the long run, save both the banks and people money.
While people can complain it is just incentives banks and borrowers doing what is in their own best interest anyway, they are missing the HUGE point that these groups aren’t and won’t do it with out government prodding (how many people did the volentary HOPE for Homeowners Act help? I think it’s literally in the dozens). It’s a classic tragedy of the commons where it is in everyone best interest that everyone else does it first…

Posted by: jhw539 | February 18, 2009, 2:59 pm 2:59 pm

Well If we Didnt have Mr Deregulator Bush And Gang (REPUBLICANS) Maybe we would not be in this Mess, I think this is a good Plan People can Refinance get a cheaper Mortgage The Banks still get Paid and it eases up on Foreclosures. Whats the Problem Haters? What would Bush or Mccain do?

Posted by: Angie | February 18, 2009, 3:01 pm 3:01 pm

I am not happy with this whole bailout stuff.
The $13.00 a week I will get as my “stimulus” might as well be thrown out the window. Do the big guys & gals in DC really think this is the answer to me going out to spend money? I am going to pay off my credit cards, keep my paid cars up running, pay my mortgage on time (even though I won’t get any special treatment) and pray the world does not come to an end! Luckly I am an experienced RN-NP and my job is probably safe. I feel sorry for my son who graduates in May with a law degree and can not find a job. He is considering the military.

Posted by: cissy55 | February 18, 2009, 3:03 pm 3:03 pm

Peach,
If you are interested in putting up lists I would like to see one about the Bush administration. That list of negatives would be quite interesting. Better yet, make a list of positives because frankly it would be quite easy finished in a few seconds.

Posted by: Ordermonger | February 18, 2009, 3:04 pm 3:04 pm

” Borrowers who pay on time for five years can have up to $5,000 applied to reduce their debt by the end of that period.”
—————————–
The above statement came from the White House site.
In addition to the money the government is giving lenders to refinance loans, the government is going to give each refinanced homeowner $5000 for making their payments on time.
They’ve signed a contract to pay on time. Why will our tax money pay them to do what they should have done all along?

Posted by: mad | February 18, 2009, 3:06 pm 3:06 pm

Peachie
Give it a rest already, Nothing Compared to What your Idiot Bush did to this country!

Posted by: Angie | February 18, 2009, 3:07 pm 3:07 pm

“How many more democrat sleaze ball scandals have to happen before the media holds the democrats responsiblie for this meltdown that began in 2006, when barney and gang took over”
It doesn’t matter who the media ‘holds responsible’ it matters who the American public blames, and instead of blaming Democrats for trying to structure mortgages so that lower income people can afford to own their own homes, they seem to be blaming Wall Street greed and the banking industry for creating a huge housing bubble and the Republicans for not doing anything about it.

Posted by: Skip | February 18, 2009, 3:11 pm 3:11 pm

Take it easy William. Peach is just pointing out some inconvient truths. I think the truth of her observations hurts.

Posted by: pesiri | February 18, 2009, 3:11 pm 3:11 pm

Obama, in that fact any politician, trying to tell normal citizens to “live within your means” is pretty hysterical. It’s very true, but it’s pretty worthless coming from the politician.

Posted by: Aaron | February 18, 2009, 3:15 pm 3:15 pm

Like Bush said Wall St GOT DRUNK! Seems to me Bush and Gang gave them The alcohol

Posted by: Angie | February 18, 2009, 3:17 pm 3:17 pm

Where did this reporter come up with $275B, Obama is only pledging $75B – just a $200B type O I guess. Pretty bad for a reporter to be so far off.

Posted by: eyeonyou | February 18, 2009, 3:17 pm 3:17 pm

“* The Dow at a 10-year low.
* A tax cheat running the IRS
* Another tax cheat as the Chief of Staff”
A free loading tax cheat is now the GOP’s great white hope.
Whatever will the right wingers do!

Posted by: Ryan C | February 18, 2009, 3:18 pm 3:18 pm

mad:”In addition to the money the government is giving lenders to refinance loans, the government is going to give each refinanced homeowner $5000 for making their payments on time.”
THIS IS A LIE. They are only going to give refinanced homeowner who pay off ‘under water’ mortgages this incentive. NOT every refinance by a long shot. For example, if a homeowner pays off a $200k mortgage on a $160k house, the government will provide a $5k incentive over 5 years.
Do you fail to see the benefit of this over the homeowner just walking away and saddling the bank (and ultimately the tax payers as banks default and values plunge further) with the loss? Would you rather be righteous and lose money than pragmatic and steady the market?

Posted by: jhw539 | February 18, 2009, 3:20 pm 3:20 pm

“Where did this reporter come up with $275B, Obama is only pledging $75B – just a $200B type O I guess. Pretty bad for a reporter to be so far off.”
————————
$200 billion is a guarentee to FM/FM which is in addition to the $200 billion bailout to FM/FM last fall.
$75 billion is for lenders and homeowners.

Posted by: mad | February 18, 2009, 3:24 pm 3:24 pm

“The markets went dive again today. What is going to happen next? That show that Obama doesn’t know how to do the job.
He has a ‘lack’ of both experience and
leadership.”
Did you say that when the Dow dropped thousands of points while Bush was watching the housing bubble burst?

Posted by: Skip | February 18, 2009, 3:25 pm 3:25 pm

JHW, I was responding to your comment that there was “no free money” involved. My post shows that there is indeed “free money” involved.

Posted by: mad | February 18, 2009, 3:27 pm 3:27 pm

Hmmm the markets seem to basically be treading water despite bad data coming from the Fed today and economic sectors. To all those saying that Obama’s speech drove the market down that is pure idiocy. First the market is even today not down. Second bad data balanced out his speech. Third, one day is not a good overall indicator, especially for a plan that has not been put into action. Fourth, wall street would not be real enthusiastic about this plan anyways cause it by and large does not give them large sums of money with no consequences, unlike the Bush bailout. Fixing something as vast as the economy takes time, please stop overreacting and abscribing blame to a President not even a month into office.

Posted by: Ordermonger | February 18, 2009, 3:30 pm 3:30 pm

No, that’s not howling dogs you hear – it’s the sound of the Republican Party, lost in the political wilderness, wailing and gnashing their teeth.
Repubs: You did it to yourselves.
G.O.P. = R.I.P

Posted by: R Mutt | February 18, 2009, 3:31 pm 3:31 pm

pesiri, if you think what Peach had to post were “truths,” then your definition of truths is far outside the norm.

Posted by: William J. LePetomane | February 18, 2009, 3:35 pm 3:35 pm

My initial post (in a different thread) was, “Giving away free money is NOT a major component of it.”
I still stand by that, it is not the major cost involved. But I think the facts have been laid accurately enough and don’t see a lot more to debate on this point.

Posted by: jhw539 | February 18, 2009, 3:37 pm 3:37 pm

Who is paying this $275 billion
and who is receiving it?
Aren’t we rewarding failure and punishing those that are responsible and live within their means and pay their bills?

Posted by: Sally J | February 18, 2009, 3:40 pm 3:40 pm

Don’t expect Obama to lead. He is just the democrat salesperson! That is why they selected him! :(

Posted by: aware2u | February 18, 2009, 3:43 pm 3:43 pm

The beauty of the plan is that it LOWERS INTEREST RATES TO A REASONABLE PLACE, and people are given incentive to pay their debts on time, even when money is tight all around.
The predatory lenders created this ridiculous rates (formerly known as USURY).
NEXT, LOWER ALL CREDIT CARD RATES TO 8%!!!

Posted by: R Mutt | February 18, 2009, 3:43 pm 3:43 pm

Obama said, this mrtgage plan is his plan. but this is exactly the plan McCain and Palin was talking about months ago, and I think it is the McCain Palin plan. And it is a very good plan, will help with the economy.

Posted by: Joe | February 18, 2009, 3:45 pm 3:45 pm

Posted by: Ordermongetr | February 18, 2009, 3:45 pm 3:45 pm

No doubt Obama’s proposal is energetic and ambitious.
But anything implemented with the express purpose of reducing foreclosures and generally reversing the ongoing housing crisis faces questions of viability and, well, believability.

Posted by: matt | February 18, 2009, 3:50 pm 3:50 pm

“Bush took your tax money and gave it to the rich, Obama’s taking your tax money and giving it to the poor; either way YOU lose!”
Who is ‘YOU’? Obama is trying to help the middle class. But I understand that after 8 years of being bled by the Republicans the middle class probably looks poor to you.

Posted by: Skip | February 18, 2009, 3:50 pm 3:50 pm

Angie, Bush might have done some de-regulation, BUT here’s the thing. CHECK the facts and SEE FOR YOURSELF THAT YOUR BELOVED SAVIOR VOTED AGAINST REGULATING WHEN HE WENT AND BEGGED THEM IN 2005-2006!BUSH WARNED THEM TO DO SOMETHING BUT THE GUY YOU ELECTED INTO OFFICE WAS ONE OF THE GUYS WHO BELIEVED THAT YOU SHOULD BE ABLE TO OWN A HOME REGARDLESS OF HOW MUCH YOU MAKE! YOU WHO VOTED THESE IDIOTS, LIARS, & CHEATS CAN’T SEE THE TRUTH IN FRONT OF YOU EVEN WHEN IT COMES OUT OF THEIR OWN MOUTH!! WE’RE GIVING FRANNIE AND FREDDIE MORE POWER!! THESE WERE THE GUYS WHO CONTRIBUTED THE MOST BESIDES DODD! KNOW WHY IT’LL FAIL?? MORE OF THE SAME!

Posted by: Truthsayer | February 18, 2009, 3:56 pm 3:56 pm

President Obama Should work on credit card Rates, My Bank of America card a Rate of 8 percent for the last 3 years has Jumped up to 19 Percent never been late always Paid on time, I called them and they told me Thats the way things are done now

Posted by: Angie | February 18, 2009, 4:00 pm 4:00 pm

JHW, all $275 billion is “free money” taken from taxpayers.

Posted by: mad | February 18, 2009, 4:02 pm 4:02 pm

TRUTHSAYER
That is a Right Wing LIE! Republicans Held congress for 6 Years, of Bushes 8 Years of Presidency.Bush Deregulated Wall St SO THEY WENT ON A FREE FOR ALL!

Posted by: Angie | February 18, 2009, 4:02 pm 4:02 pm

Oh, and as for the market having nothing to w/ BHO? Remember the day he was sworn in? Anyone w/ brains and some sense know this guy is not up to the job! That’s why he goes to Chicago to play b-ball when the world is heading for catastrophe according to him! Why are none of you Obamazombies calling him out on the amount of fuel he’s burning up promoting himself?

Posted by: Truthsayer | February 18, 2009, 4:04 pm 4:04 pm

“Truthsayer”:
Don’t waste your time trying to blame Dems for the EPIC REPUBLICAN FAILURE CALLED NEO-CONSERVATISM.
YOU FAILED.
YOU LOSE.
AMERICA HAS REJECTED YOUR PRODUCT.
G.O.P. = FAIL

Posted by: R Mutt | February 18, 2009, 4:06 pm 4:06 pm

Angie, I NEVER voted for Bush…I am NOT a McCain supporter! I have enough sense to vote for the “BEST” person for the job vs. following anyone who wants to give me $13 bucks as a gift off the cliff!

Posted by: Truthsayer | February 18, 2009, 4:11 pm 4:11 pm

Skip, I’m not an American, so I’m just a spectator, enjoying the ride. But feel free to keep screaming impotently at one party while turning a blind eye towards your own party’s sins.

Posted by: Wake up | February 18, 2009, 4:13 pm 4:13 pm

R Mutt: They are not going to lower intrest rates on credit cards. A bill that was signed to go in effect for 2010 to keep rates at bay is a joke! I recieved a letter from Capital One that my rate was going from 14.9% to 22.9% in May… I pay on time & way above the payment requested. Local newspaper printed big story today how this is being sent to all Capital One holders.So the CC companies are going to boost rates extremely high so when law hits in 2010 we will be paying what they wanted any way!!! So people will say close the account… it will lower my credit score. We just can not win. I will pay those cards off & pay cash from now on(We are being Scr$wed every way they can think of)So stimulus will not work. Average person will keep their money, not run out and buy cars or luxury items for fear things will get worst( gas is going up every day). Because we are a country of consumers not manufacters anymore no way out of this mess. I guess they sky is really falling!

Posted by: cissy55 | February 18, 2009, 4:15 pm 4:15 pm

“Obama said, this mrtgage plan is his plan. but this is exactly the plan McCain and Palin was talking about months ago, and I think it is the McCain Palin plan.”
The McCain plan was for the government to buy up all the toxic loans then have the government renegotiate with homeowners.
The Obama plan does not government buy the toxic assets.
It allows Fannie/Freddie greater flexibility in renegotiating loans they already have and it gives other lenders some protection in order to renegotiate their loans.
Let me guess…Rush said this was the same plan and all the dittoheads mindlessly repeat it.

Posted by: Ryan C | February 18, 2009, 4:16 pm 4:16 pm

“Angie, I NEVER voted for Bush…I am NOT a McCain supporter! I have enough sense to vote for the “BEST” person for thw job vs. following anyone who wants to give me $13 bucks as a gift off the cliff! Get a real education and wake up!”
So eager to spout right wing talking points yet too timid to admit one voted for Bush.
I think the GOP Brand has some serious problems.

Posted by: Ryan C | February 18, 2009, 4:18 pm 4:18 pm

Right…again you’d rather be blind. I don’t know you and have no reason to claim anything other than the fact! I WAS A DEMOCRAT until the past two years! Campaigned AGAINST BUSH for the record, Sr. & Jr.! Get a clue.

Posted by: Truthsayer | February 18, 2009, 4:26 pm 4:26 pm

“I WAS A DEMOCRAT until the past two years! Campaigned AGAINST BUSH for the record, Sr. & Jr.! Get a clue.”
We totally believe you.

Posted by: Ryan C | February 18, 2009, 4:31 pm 4:31 pm

We are in such trouble and the government hasn’t a clue. I have always had good credit and I own my home outright. Two of my credit cards were closed by the banks because I have not used them in a year. That has caused my credit rating to go down and my interest rates go up. You try to be a responsible person and you get penalized. I can only imagine what is happening to these people who have a mortgage problem. I guess all we can do is pray.

Posted by: Tina | February 18, 2009, 4:34 pm 4:34 pm

I am glad I did not vote for Obama or Mccain. It’s time for a third party.

Posted by: Ken | February 18, 2009, 4:37 pm 4:37 pm

What I don’t get is that if this plan won’t help those who made/took bad loans out of this trouble then who will it help? I thought the whole problem was the bad loans?
It’s those toxic loans that are killing us.
Looks like Wall Street was none too happy about the whole thing. I think they continue to hear the roar of FED printing presses and the inflating of the dollar. Which probably explains why ExactPrice shows gold continuing it’s climb. It’s at $985.90 an ounce right now.
Just tells me that big investors are seeing ship sinking and getting out of the dollar why they can.

Posted by: Hal | February 18, 2009, 4:42 pm 4:42 pm

Thank you Ken. I’m w/ you!

Posted by: Truthsayer | February 18, 2009, 4:51 pm 4:51 pm

I hope these guys know what they are doing..and this doesn’t blow up in our collective faces.

Posted by: DontGet818OnMeNow | February 18, 2009, 4:59 pm 4:59 pm

The real solutions can’t be done. The real solutions are either to drag the real estate – motgage industry/bankers off to prison without a trial or to drag them into the street and shot them. The economic melt down is with out a doubt made by the Republicans put in motion by Pres. Ronald W. Reagan. At least the Democratic Party is doing something to stop the Republican corruption and the bread lines from forming.

Posted by: Bruce Buller | February 18, 2009, 5:24 pm 5:24 pm

Bruce Buller-
I refinanced twice during the boom, and both of those times had to sign, in writing, that I understood the rate could go up.
How is a failure of the borrower to understand a document that they HAD to sign a fault of Republicans, or Democrats for that matter?
Guess who you can thank for not paying taxes on the sale of your home, Bruce. Yep, Ronald Reagan.

Posted by: milton friedman | February 18, 2009, 6:15 pm 6:15 pm

thru out the campaign, i keep hearing from the dems about how the repubs “deregulate”. and i am thinking, “ok so that gives congress excuse to be lax at their job?” whether you regulate or deregulate, you have a responsibility to do your job. these people have ivy leagues degree and they are too busy pointing their fingers at eachother like 5 year old.

Posted by: jaj | February 18, 2009, 7:03 pm 7:03 pm

“thru out the campaign, i keep hearing from the dems about how the repubs “deregulate”. and i am thinking, “ok so that gives congress excuse to be lax at their job?” ”
You may want to check up on your civics.
Congress legislates.
The Executive Branch handles the actual regulating.

Posted by: Ryan C | February 18, 2009, 7:24 pm 7:24 pm

I’d like to know what Obama plans to do to “help out”. Perhaps he could let a needy family live in his house for the next 4 years – because he’s not a hypocrite and all that.

Posted by: Plumber | February 18, 2009, 7:37 pm 7:37 pm

Are you responsible for your neighbor’s bad decisions?
Obama and Congress appear to think so. Is there any common sense in this program?

Posted by: James Raider | February 18, 2009, 8:41 pm 8:41 pm

Since young people don’t understand socialism and the education system is so bad, let’s do this to teach them what Obama is doing by this redistribution of wealth:
The next time your wait staff brings the bill in a restaurant, tell them they gave good service and deserve a tip.
But in keeping with Obama’s socialistic worldview, you are going to do your part and you have spotted someone in the restaurant who looks more needy and THEY are getting the tip $$ instead.

Posted by: Peach | February 18, 2009, 9:27 pm 9:27 pm

Now the responsible citizen gets to bailout the irresponsible ones.
________
The issue is so much bigger than that, red.

Posted by: gravy | February 18, 2009, 10:04 pm 10:04 pm

I listen to these people who still have jobs or are retired talk about people who made bad decsions and are loosing their home. What they don’t talk about is the 3 million people who have lost their job. NO fault of their own. That bought homes that were affordable, when they had a decent job. Some people are victims of the economy, really. 5 factories in my hometown, 49 small businesses this month, anyone in the financial field and unemployment is at 10 percent. For those of you people who are retired you are part of the me generation that created social security for yourself. I am fourty I will never see mine. So shut up your elected officials throughout the years have ripped us off.
Most people I know have a low rate, but a lot of us have lost our job and are working twice as hard at jobs that pay nothing. Obamas construction mexican job plan does help illegal immigrants get better jobs.
Everything is so wrong.

Posted by: Drak0714 | February 18, 2009, 11:58 pm 11:58 pm

Keep in mind people someone has to eventually pay for all this.
If Obama had his way half the country would be sitting at home collecting their check in the mail, courtesy TAXPAYERS, they would be watching Obama on TV, free internet courtesy taxpayers Logged onto iloveobama.com. When he needs peoples support they could harrass noncomplient congressmen for him. They could protest for him.
US TAXPAYERS CAN’T Provide for everyone.
we are Pulling the cart and more and more are jumping in the cart.
Don’t forget the percentage of people paying taxes to pay for everything is only a small percentage of the general population. Soon Obama is going to start pushing gas and electric prices way up to get his green agenda. He wishes gas was 5 dollars a gallon.
Congress Gave themselves 93,000 dollars extra in petty cash this year. We get 13 Dollars a week of our own money . The Biggest Tax Break in History LOL
I don’t know about you guys but pulling this cart with people piling in is wearing me down. Our children and grandchildren don’t want our bills.

Posted by: al389 | February 19, 2009, 6:23 am 6:23 am

Is it true that Obama’s proposal will FORCE the banks to refinance mortgages where the money owed is more than what the house is now worth?
Housing prices have dropped. We all know that.
So people who owe $250,000 but their house is now only worth $175,000 will have to pay back $175,000. That’s what it sounds like to me. Is this true?
Congressional intervention forced the banks to make loans to people who would never have qualified for loans in the past. This proposal will KILL the banks.

Posted by: Peach | February 19, 2009, 10:29 am 10:29 am

We’re watching the most expensive learning curve in American history.

Posted by: Peach | February 19, 2009, 10:45 am 10:45 am

Homeowner Bailouts = Renters Getting Robbed! Homeowners think I should keep the fraudulent value of their homes propped up just because they were part of the greatest criminal conspiracy this country has ever seen. I didn’t realize renters were treated as second class citizens in this country. You steal my money to give to people that work at Taco Bell, so they can keep living in a $300K house. Corrupt homeowners think that just because they WISH their house is worth so much – that makes it true. I hope the day comes when stupid publically school taught renters finally realize they are getting raped on a daily basis by these Yuppie Scumbag Trash & rise up & fight to take back this country from the criminals that run it!

Posted by: JEFF | February 20, 2009, 12:12 pm 12:12 pm

One good thing about the current economic crises is every body tries to be an expert. Some say why govt interfere with free market and let firms fail, people loose job and down the road the market will fix it self. Do you think as a government you can sit down crossing your hands see tens of millions with out job, or is it better to give reach people who turned the wall street up side down and who have messed up the lives of ordinary citizens be given a reward of tax cut for their good work? Who else is going to invest in the current situation other than the government? it is good to sound like a free market guy, but free market is good as long as it helps the vast majority of people to put food on the table. Too much noise will not make a good solution, plse come up with best solution that will help to keep the country going and every body feels safe. I am just an ordinary person who have not taken loan any thing, but have been unemployed for a while due to the current crises, and ask me if I can sit in luxury to see the market work out solution, it feels like a joke.

Posted by: Mucha Lucha | February 21, 2009, 9:49 pm 9:49 pm

its all actually really stupid. that we have to pay more because people didnt know how to handle their own money. so now their getting even more. i hope they learn how to take care of themselves. my mom was able to make much more money then, when she had to take care of five children by herself than now when 4 of us are already taking care of themselves. in fact, because she has to pay more (because of obamas plan to take money from the middle class and help the poor) her children have to give her money just to make the payments, especially on the house. we’ve lived in that house for more than 10 years and now my moms recently mentioned about moving out. like hell im going to let that house go.
my father loved that house when he was alive.

Posted by: reniegh | February 23, 2009, 4:37 pm 4:37 pm

Top

Obama’s $275 Billion Plan to Stem Home Foreclosures

Related Videos

Leave a Reply