Obama throws $75 billion lifeline to homeowners

[jedi]

MESA, Ariz. – President Barack Obama threw a $75 billion lifeline to millions of Americans on the brink of foreclosure Wednesday, declaring an urgent need for drastic action — not only to save their homes but to keep the housing crisis "from wreaking even greater havoc" on the broader national economy.
The lending plan, a full $25 billion bigger than the administration had been suggesting, aims to prevent as many as 9 million homeowners from being evicted and to stabilize housing markets that are at the center of the ever-worsening U.S. recession.
Government support pledged to mortgage giants Fannie Mae and Freddie Mac is being doubled as well, to $400 billion, as part of an effort to encourage them to refinance loans that are "under water" — those in which homes' market values have sunk below the amount the owners still owe.
"All of us are paying a price for this home mortgage crisis, and all of us will pay an even steeper price if we allow this crisis to continue to deepen," Obama said.
The new president, focusing closely on the economy, in his first month in office, rolled out the housing program one day after he was in Denver to sign his $787 billion emergency stimulus plan to revive the rest of the economy. And his administration is just now going over fresh requests for multiple billions in bailout cash from ailing automakers.
Wall Street has shown little confidence in the new steps, declining sharply on Tuesday before leveling off after Wednesday's announcement. The Dow Jones industrials rose 3 points for the day.
Success of the foreclosure rescue is far from certain.
The administration is loosening refinancing restrictions for many borrowers and providing incentives for lenders in hopes that the two sides will work together to modify loans. But no one is required to participate. The biggest players in the mortgage industry temporarily had halted foreclosures in advance of Obama's plan.
Complicating matters, investors in complex mortgage-linked securities, who make money based on interest payments, could still balk, especially those who hold second mortgages or home equity loans. Their approval would be needed to prevent many foreclosures.
"The obstacles have not gone away," said Bert Ely, a banking industry consultant in Alexandria, Va.
Another cautionary note came from John Courson, chief executive of the Mortgage Bankers Association.
"It seems to offer little help to borrowers whose loan exceeds their property value by more than 5 percent," he said, noting that that requirement would limit the plan's success in some of the hardest-hit areas in California, Florida, Nevada and Arizona and parts of the East Coast.
Indeed, Obama himself said, "This plan will not save every home."
The goal is to lower many endangered homeowners' payments to no more than 31 percent of their income. But that depends on a high degree of cooperation by lenders who have been increasingly wary of new lending as the crisis has deepened.
Still, the Obama administration, after talking with mortgage investors, appears confident that it is providing the right mix of incentives and penalties to make sure mortgage companies take part. Obama said he backs legislation in Congress to allow bankruptcy judges to modify the terms of primary home loans — an idea ardently opposed by the lending industry.
"Taken together, the provisions of this plan will help us end this crisis and preserve, for millions of families, their stake in the American Dream," Obama said. Yet, he also added: "We must also acknowledge the limits of this plan."
He called on lenders, borrowers and the government "to step back and take responsibility" and said: "All of us must learn to live within our means again."

There's broad economic anxiety across the nation, an Associated Press-Gfk poll indicated.
Nearly three in four people say they know someone who has lost a job in the past six months as a result of the tough economic conditions, according to the poll, released Wednesday. And more than half say they worry about being able to pay their bills and about seeing their retirement investments decline. So far, Obama's job approval rating still is high, at 67 percent, and he is scoring strong marks for his handling of the economy.
The president unveiled his housing plan at a Phoenix-area high school in a state with one of the country's biggest foreclosure rates.
Nationally, Moody's Economy.com says that of the nearly 52 million U.S. homeowners with mortgages, about 13.8 million, or nearly 27 percent, owe more than their homes are worth after many months of declining prices.
How soon will the new plan show results?
"You'll start to see the effects quite quickly," Treasury Secretary Timothy Geithner told reporters in Phoenix, noting that rules governing the changes will be published March 4.
In theory, homeowners facing foreclosure or borrowers owing more on their homes than their mortgages are worth would have more opportunities to refinance their loans so that they have lower monthly payments. Lenders would voluntarily participate in the government programs.
The $75 billion Homeowner Stability Initiative would provide incentives to mortgage lenders to cut monthly payments in an effort to persuade them to help up to 4 million borrowers on the verge of foreclosure. The goal: cut monthly mortgage payments to sustainable levels, using money from the $700 billion financial industry bailout passed by Congress last fall.
Another part would specifically help people with dwellings whose market value has sunk below the principal still owed on the mortgages. Such mortgages have traditionally been almost impossible to refinance. But the White House said its program will help 4 million to 5 million families do just that — if their mortgages are owned or guaranteed by Fannie Mae or Freddie Mac.
To boost confidence, the Treasury Department said it would double its support to the two mortgage giants that the government essentially took over last fall.
It said it would absorb up to $200 billion in losses at each company by using money Congress set aside last year and will continue purchasing mortgage-backed securities from them. Fannie Mae and Freddie Mac are projected to need a combined government subsidy of about $66 billion, well short of the new promise of up to $400 billion.
Obama emphasized that his plan focuses on helping families who have "played by the rules" stay in their homes.
But, he said, it will do nothing to help "the unscrupulous or irresponsible." He cited so-called speculators who took out risky loans on multiple properties to make money by selling them during the housing boom, lenders who took advantage of naive buyers by glossing over the fine print, and people who willingly bought homes that were way beyond their means. "This plan will not save every home," Obama said.

source:
Obama throws $75 billion lifeline to homeowners - Yahoo! News

There are not enough cuss words in all the know languages for me to shout about this and what BO and Congress are doing!


Bascially what this tells me is the following.
I should have
1) Got a mortage for a house I could not afford because...
BO is going to help pay for my house anyway.

2) Quit my job that way I don't pay no taxes becuase..
BO signed a bill that still gives me money anyways and gives me more for all the kids I have!

So with my house and 'welfare check' set all I need is for BO to pay my car note and give me health insurance. May the sweet life of not having to work and getting all the rewards for free!



When will America wake up!!!!

 

[HICKMAN]

Just an FYI, not everyone bought a house "they couldn't afford".

My house is in foreclosure and will be sold in the Sheriff's sale next month.

Long story short, my daughter was born between my switching jobs and was considered "pre-existing condition" and not covered by my insurance. The bill was mine at a time I couldn't manage it. Basically hosed my credit forever, even though I've been paying it off for the last ten years.

We did the "rent to own" for several years and got an ARM loan, because we didn't know any better and it put the house in our name. When my payments went from $900 a month to $1475, we couldn't keep up after the first six months. Once we fell behind, we couldn't get refinanced.

I won't take any help... whatever is left will be mine to pay.

So keep in mind... not everyone is trying to milk the system.

 

[jedi]

IndyBassin I'm sorry to hear of your perils with the housing. I'm sure that you probably won't qulify anyway for the help BO is sending. While the details are none I'm sure you have to be on welfare, have no job, etc.. I barely make ends meet and I bought a small house and work OT to help out but it pisses me off when I see/hear people in the area say "Oh I don't feel ike working today. I'm holding out for my disability check" or "I'll only work if it's cash" (not reportable) or those b&*^& that have multiple childre each on SSI and they also getting SSI while I work my a** off.

Sorry all I'm in a real foul mood today. It seems that those that work in this country now get punished and have to pay for their living AND for those that just want to milk the system.

Was reading in the Hammond Times of our "wonderful" indiana senator who is trying to get LAKE county expect from the property tax limit. LAKE county (the most corrupt county in IN) is a ceaspool of lazy government workers that do nothing but milk the system while the general population roits away. and what gets me is that the stupid poeple continue to vote them IN!!!!!


aahahahahahhahahahaaaa

 

[HICKMAN]

Nope, I make too much money for help, even though I'd be one of the few who could actually pay them back.... silly, isn't it?

 

[Turtle]

not to be raciest but this mostly bail a large majority of blacks... followed by the irresponsable.

 

[esigler]

I can relate a little my five year old daughter is my home equ!

 

[jedi]

not to be raciest but this mostly bail a large majority of blacks... followed by the irresponsable.

Well du!!!!! +1 for bring it up.
Heck this lady told us about it way before BO did it!
YouTube - Obama Is Going To Pay For My Gas And Mortgage!!!

 

[Bigum1969]

Well du!!!!! +1 for bring it up.
Heck this lady told us about it way before BO did it!
YouTube - Obama Is Going To Pay For My Gas And Mortgage!!!

 

[public servant]

I'm a republican....so don't get me wrong. But were you this pi$$ed off when Bush threw nearly $1 trillion dollars to Wall Street, banks and the auto makers? I'd rather see the money go to those who are attempting to buy a home than the elite who only need it to line their pockets further. I'd rather it go to those who lost their jobs or are struggling to make ends meet due to the high cost of living caused by governments refusal to step in and start limiting profits on oil companies. Record quarterly profits for years followed by their excuses as to why the price of fuel rose so high. Fuel prices are down but the cost of necessities have not fallen back. We heard for months that the reason the prices on grocery shelves were rising were because of the increased costs of transportation. But they have not began to fall back to reflect the lower fuel costs.

I have no sympathy for those that over spent on housing. But for the middle class truly trapped between the proverbial rock and the hard place....I'd much rather see the bail outs go to them rather than those that caused this mess in the first place.

 

[public servant]

Just an FYI, not everyone bought a house "they couldn't afford".

My house is in foreclosure and will be sold in the Sheriff's sale next month.

Long story short, my daughter was born between my switching jobs and was considered "pre-existing condition" and not covered by my insurance. The bill was mine at a time I couldn't manage it. Basically hosed my credit forever, even though I've been paying it off for the last ten years.

We did the "rent to own" for several years and got an ARM loan, because we didn't know any better and it put the house in our name. When my payments went from $900 a month to $1475, we couldn't keep up after the first six months. Once we fell behind, we couldn't get refinanced.

I won't take any help... whatever is left will be mine to pay.

So keep in mind... not everyone is trying to milk the system.

Exactly my point. You got sold a mortgage by a crooked mortgage company. You're who I want to see the bailout go to. My retirement is now worthless. Because of the foreclosures in my neighborhood my home is now worth $20K less than what I bought it for. Screw Wall Street, the banks and the big 3 automakers. They made their bed....let them lay in it. Bail out the middle class....for once. And a LOT of people need to go to prison for this mess.

 

[clickclickboom]

Those bitching about obama do realize that McCain's grand plan was for the government buy the mortgages, eat the difference between what the morgage was, and current value and then resell the mortgage.

this is a ****** situation, with no good solution.

@indybassin
Good luck with your situation. I know about pre-existing conditions all to well. Not nearly as bad as your situation, but I feel for you.

Take whatever help you can get, find a way to pay back the money in your own way if it will clear your conciense in the future. If you don't use the help someone else will.

 

[jedi]

I'm a republican....so don't get me wrong. But were you this pi$ off when Bush threw nearly $1 trillion dollars to Wall Street, banks and the auto makers? I'd rather see the money go to those who are attempting to buy a home than the elite who only need it to line their pockets further.

I was pissed when Bush did it. I wrote and called my congressman and senators and implored them NOT to spend the money. I praised my congressmen when he voted NO both times for Bush's bail out. (He crumbled when BO asked him!)

As far as I'm concern the only way we are getting out of this is for the complete collapse of the market. This patient (US economy) is dead and all we are doing is keeping it on life supprt and pumping blood transfusions that have no hope of bring him back to life.

NO MORE FREAKING SPENDING PERIOD!!!!
NO spending on unemployment
NO spending on defense
No spending to help any biz
No spending on education
No spending on ANYTHING!!!!!!

If a biz made made biz decisions then let it fail and file chapter 13. Yes I know that puts thousand's out of work but so be it. My generation of America's know NOTHING of sacrafice or having to save to buy things. America needs a freaking rude awakening period!

We need to pay off our debt and spot spending!!!!!

 

[HICKMAN]

Exactly my point. You got sold a mortgage by a crooked mortgage company. You're who I want to see the bailout go to. My retirement is now worthless. Because of the foreclosures in my neighborhood my home is now worth $20K less than what I bought it for.

That's what happened to us. All of the equity we built up over the years was GONE when I tried to re-finance....15K down the shitter...

 

[HICKMAN]

I'm a republican....so don't get me wrong. But were you this pi$ off when Bush threw nearly $1 trillion dollars to Wall Street, banks and the auto makers?

I was extremely pissed at Bush, of course, he had me outraged over doing NOTHING about the illegal aliens flooding this country, soon to be citizens.

I was also pissed at McCain (RINO) for even suggesting buying up all the mortgages... they would never get that money back.

 

[mettle]

So basically, Obama works on a lawyer team sueing any bank that does not provide ludricrous funding and loans for people who can't repay. He fines the banks, makes millions off of that, then he turns around and blames Bush for it.

next he takes office due to the lack of sane thoughts in America, and takes out another loan to get more money into the hands that he wants it in while all the while promoting his socialist activities...

smart man... or a man backed by George Soros STILL while he is in the whitehouse.

 

[antsi]

I'm a republican....so don't get me wrong. But were you this pi$ off when Bush threw nearly $1 trillion dollars to Wall Street, banks and the auto makers?

No, actually, I was more upset when Bush started playing Monopoly Money Bailout.

Obama ran as a commie. When he does something dumb, he's just being Obama. He ran on a platform of vague utopian promises that added up to monstrous debt. It's still stupid and counterproductive and it will make things worse in the long run, but at least he is being honest to what people thought they were voting for. "I want a president who will pay my mortgage." Great. You got that.

Bush ran as a conservative, and then came back at us with a Medicaid prescription drug bill that will be even more expensive than the bailout in the long run. He was the first to jump in and bail out the banks. Not only is Bush a commie, he's a lying commie because he ran as a conservative.

Whoever is doing it, this thing is going to be a mess and is going to leave a legacy of insurmountable debt for our children's generation.

I can think of little more abhorrent than parents and grandparents living a lifestyle beyond what they can afford and leaving their kids to pay the bill. But that is exactly what we are doing. I believe we will have to stand before judgement for this monumental selfishness if not in this life, then in the next.

 

[Indy317]

I'm a republican....so don't get me wrong. But were you this pi$ off when Bush threw nearly $1 trillion dollars to Wall Street, banks and the auto makers? I'd rather see the money go to those who are attempting to buy a home than the elite who only need it to line their pockets further. I'd rather it go to those who lost their jobs or are struggling to make ends meet due to the high cost of living caused by governments refusal to step in and start limiting profits on oil companies.

I was furious at the first bailout by the liberal socialist Bush and I am similarly upset by the bailout by the liberal socialist Obama. The housing bailout has very little to deal with those in true "need." Yea, folks got laid off, but you know what, some of them put thousands of dollars in cell phones, cell phone plans, HDTVs, $150/month cable TV service, internet service, guns, ammo, jet skis, boats, season tickets to the Colts games, booze, cigarettes, SUVs and heavy duty trucks to drive to their 9-5 office job (gas costs through the roof, they never used them to haul anything other than groceries, sun roofs, leather seats, etc.), going out and dropping $30 or more per weekend to see the newest movie release, etc..

The list goes on and on, why? Because this is the current "life" to most humans. If folks can't have the above, they cry about life being "unfair." The entire concept of saving for a rainy day has pretty much died with the baby boomer generation on down. The constant spending of thousands upon thousands of dollars on a variety of things has caused this problem. Parents can't say no to kids, parents can't say no to their own greedy wants and desires. The idea that oil played an issue in this is laughable. Why not have the government come in and take over all gun manufactures. Why should I have to pay $500-$600 for an HK UPS, shouldn't government force them to sell those for 1% above costs? Same goes for food, cars, homes, etc..? Maybe we should have government take over everything, and just buy from government. They can even tell us when, where, and what to buy?

Exactly my point. You got sold a mortgage by a crooked mortgage company. You're who I want to see the bailout go to. My retirement is now worthless. Because of the foreclosures in my neighborhood my home is now worth $20K less than what I bought it for. Screw Wall Street, the banks and the big 3 automakers. They made their bed....let them lay in it. Bail out the middle class....for once. And a LOT of people need to go to prison for this mess.

My home is now about $18K less than what I paid for it...so what? Similar homes in the area I would like to finally end up in (Hamilton Co.) have also dropped in price. I am fine with my paper loss, because unlike others who pissed away their money on "stuff," I put every dime I had into this home paying down my mortgage. I made sure I had money in the bank before I even bought the home. This isn't just having a couple grand in the bank, it is about have over $10K cash before getting a home. The former poster was not sold a mortgage by a crooked mortgage company. There is nothing crooked about ARMs. I was offered an ARM and passed. A bad move on my part actually, as I knew I was good with my money, and I could have had a much lower interest rate fixed for seven years, then re-fied for a 30 year fixed. Too many people just looked at the montly payment and picked the lowest. The fact that almost 100% of these people have high school diplomas (and a decent number college degrees) is very telling of our current educational system. If people can't grasp the simple concept of how mortgages work, this country really is doomed.

I believe we will have to stand before judgement for this monumental selfishness if not in this life, then in the next.

There is now a very, very good chance of a complete collapse of this country within the next 10 years. I used to think it would take around two decades, but with the massive bailing out of all kinds of people, companies, etc., I predict that we have maybe 10 years left. Even if the collapse doesn't come from within, it could easily come from an invasion by China, Russia, India (our "friends", for now), or any other group of people who want our resources. You see, when you don't pay your car loan or home loan, your stuff gets taken, by forced if need be. When we default on our debt owned to other countries, they won't remember all the good we did for them, all the debts we forgave. Only the US of A plays the sucker, mostly due to politically correct reasons. As such, we shouldn't be surprised when we see China coming to take some of our oil we refuse to drill, some of the coal we refuse to dig, etc.. The more a country bailouts the worthless, the layabouts, and the bums, the more of those kind of people you will have. Why anyone would raise their kid to "do the right thing" and live frugal is beyond me. Tell them to party it up, live life to the fullest, let everyone else bailout them and their mistakes. It is the new American Way.

 

[hornadylnl]

Repped. Preach on brother Craig

I was furious at the first bailout by the liberal socialist Bush and I am similarly upset by the bailout by the liberal socialist Obama. The housing bailout has very little to deal with those in true "need." Yea, folks got laid off, but you know what, some of them put thousands of dollars in cell phones, cell phone plans, HDTVs, $150/month cable TV service, internet service, guns, ammo, jet skis, boats, season tickets to the Colts games, booze, cigarettes, SUVs and heavy duty trucks to drive to their 9-5 office job (gas costs through the roof, they never used them to haul anything other than groceries, sun roofs, leather seats, etc.), going out and dropping $30 or more per weekend to see the newest movie release, etc..

The list goes on and on, why? Because this is the current "life" to most humans. If folks can't have the above, they cry about life being "unfair." The entire concept of saving for a rainy day has pretty much died with the baby boomer generation on down. The constant spending of thousands upon thousands of dollars on a variety of things has caused this problem. Parents can't say no to kids, parents can't say no to their own greedy wants and desires. The idea that oil played an issue in this is laughable. Why not have the government come in and take over all gun manufactures. Why should I have to pay $500-$600 for an HK UPS, shouldn't government force them to sell those for 1% above costs? Same goes for food, cars, homes, etc..? Maybe we should have government take over everything, and just buy from government. They can even tell us when, where, and what to buy?



My home is now about $18K less than what I paid for it...so what? Similar homes in the area I would like to finally end up in (Hamilton Co.) have also dropped in price. I am fine with my paper loss, because unlike others who pissed away their money on "stuff," I put every dime I had into this home paying down my mortgage. I made sure I had money in the bank before I even bought the home. This isn't just having a couple grand in the bank, it is about have over $10K cash before getting a home. The former poster was not sold a mortgage by a crooked mortgage company. There is nothing crooked about ARMs. I was offered an ARM and passed. A bad move on my part actually, as I knew I was good with my money, and I could have had a much lower interest rate fixed for seven years, then re-fied for a 30 year fixed. Too many people just looked at the montly payment and picked the lowest. The fact that almost 100% of these people have high school diplomas (and a decent number college degrees) is very telling of our current educational system. If people can't grasp the simple concept of how mortgages work, this country really is doomed.



There is now a very, very good chance of a complete collapse of this country within the next 10 years. I used to think it would take around two decades, but with the massive bailing out of all kinds of people, companies, etc., I predict that we have maybe 10 years left. Even if the collapse doesn't come from within, it could easily come from an invasion by China, Russia, India (our "friends", for now), or any other group of people who want our resources. You see, when you don't pay your car loan or home loan, your stuff gets taken, by forced if need be. When we default on our debt owned to other countries, they won't remember all the good we did for them, all the debts we forgave. Only the US of A plays the sucker, mostly due to politically correct reasons. As such, we shouldn't be surprised when we see China coming to take some of our oil we refuse to drill, some of the coal we refuse to dig, etc.. The more a country bailouts the worthless, the layabouts, and the bums, the more of those kind of people you will have. Why anyone would raise their kid to "do the right thing" and live frugal is beyond me. Tell them to party it up, live life to the fullest, let everyone else bailout them and their mistakes. It is the new American Way.