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| Obama to unveil |
| 2009-02-18 |
| President Barack Obama's plan to tackle the foreclosure crisis will spend $75 billion in an effort to prevent up to 9 million Americans from losing their homes. In tandem, the Treasury Department said it would double the size of its lifeline to Fannie Mae and Freddie Mac. The government, which seized the mortgage finance companies last fall, said Wednesday it would absorb up to $200 billion in losses at each company. The plan, which Obama is releasing later Wednesday, is more ambitious than initially expected -- and more expensive. It aims to aid borrowers who owe more on their mortgages than their homes are currently worth, and borrowers who are on the verge of foreclosure. The initiative is designed to help up to 5 million borrowers refinance, and provides incentive payments to mortgage lenders in an effort to help up to 4 million borrowers on the verge of foreclosure. "All of us are paying a price for this home mortgage crisis," Obama says in a prepared text of remarks scheduled shortly after 12 noon EST Wednesday at a Phoenix area high school. Headlining the plan was a $75 billion Homeowner Stability Initiative, under which would provide incentives to lenders to cut monthly mortgage payments to sustainable levels. It defines this at no more than 31 percent of a homeowners income. Another key component: a new program aimed at helping homeowners said to be "under water" -- with dwellings whose value have sunk below the principal still owing on their mortgages. Such mortgages have traditionally been almost impossible to refinance. But the White House said its program will help 4 to 5 million families do just that. Of the nearly 52 million U.S. homeowners with a mortgage, about 13.8 million, or nearly 27 percent, owe more on their mortgage than their house is now worth, according to Moody's Economy.com ... |
| Posted by:ed |
| #7 LOL - thx Darrell |
| Posted by: Frank G 2009-02-18 22:18 |
| #6 There seems to be about 50 to 75 foreclosures listed in my local fishwrap every Sunday, so it's not just California. We've also lost about 7000 jobs in the last three years, as Intel, HP, SCI, and a half-dozen others have cut their workforce. The only thing keeping things from being REALLY bad is the military - there are five military installations (Cheyenne Mtn, Peterson AFB, Schreiver AFB, USAF Academy, and Fort Carson) in the local area. |
| Posted by: Old Patriot 2009-02-18 21:53 |
| #5 Same here guys. 90% paid off never missed a payment. 100% of HE loan for kids college paid off, never missed a payment. Where's my cut? |
| Posted by: AlanC 2009-02-18 14:39 |
| #4 I thing most of the foreclosure crisis is in California and Florida. It might be cheaper to transfer Frank G and other R'burgers and then drop California and Florida from the country. It would get rid of Pelosi too. |
| Posted by: Darrell 2009-02-18 11:48 |
| #3 Parabellum - I'm in the same boat. Never missed a payment. Might have missed out on a big screen TV, RV or Boat to make the mortgage payments. Of course you know we won't get a dime. In fact we, and our grandchildren, are the ones who will be on the hook to pay for it. |
| Posted by: CrazyFool 2009-02-18 11:30 |
| #2 My mortgage is over half paid off, and I never missed a payment in my life. How much money do I get, Barack0? |
| Posted by: Parabellum 2009-02-18 11:23 |
| #1 "All of us are paying a price for this home mortgage crisis," Obama says... Whaddya mean by "us", kemosabe? |
| Posted by: tu3031 2009-02-18 11:09 |