February 18, 2009

Obama announcing new Housing relief plan today!

Posted: 11:14 AM ET

Note: We'll be covering this tonight on LKL!!

President Barack Obama’s plan to confront the housing crisis is even more ambitious than first expected — committing $75 billion in an effort to keep as many as 9 million Americans from losing their homes, the White House said Wednesday morning.

Obama, who unveils the plan later in Pheonix, is targeting the help to two groups — homeowners who own more on their mortgages than their homes are worth, and others who are right on the cusp of foreclosure.

One key to Obama’s plan: giving incentives to lenders to restructure mortgages so that homeowners who are trying to keep up can meet new, lower payments. His plan will use federal dollars for the first time to help lenders make new arrangements designed to prevent people from losing their homes.


Filed under: Economy • President Obama

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Pat   February 18th, 2009 12:21 pm ET

I have an original mortgage and then I took out a 2nd mortgage for some money to pay off bills – the 2nd is an interest only payment. Will this qualify for mortgage assistance?

I am juggling payments since I went on unemployment last October. I am 64 years old and I make more on unemployment than I would if I took my social security now. I put my house up for sale to pay off my bills – no one is even looking at houses in our resort area, though.

This is a sad state of affairs for a single grandmother who had an 825 credit score last June – I am afraid to see how low it has gone since I can only pay partial payments on my mortgages and car loan. I tried to give the car back, but they want me to"pay $100 each month until I get another job." I know they have reported me as a "late payer." Is there some way that our now lousy credit scores could be set back to what they were before we lost our jobs? This would help us in the future to get low interest rate loans.

Thanks for any answers you can give.


sean brizendine   February 18th, 2009 12:32 pm ET

good because people need help now with they're homes.
"sean in santa rosa"

larry powers   February 18th, 2009 12:34 pm ET

IM shocked at parts of the stimulus package and bailouts to companies that killed themselves. The labor union was men who banned together in response to intolerable working conditions low wages and long hours.
Today they are overpaid laborers. look a crossing guard at school can be in the 4th grade, a crossing guard in the union makes 15 plus dollars an hour. I can teach my 10 yr old to push a broom, that same
janitor makes 26 bucks an hour in the auto industry.
a auto worker if he starts a job at the age of 18 can retire in 20. he then has to be replaced under the same rules. That 38 yr old then goes out and takes another job away from a man that needs a income.
We pay our health insurance plus theres. every car on the lot you buy new has 2,000 that goes into thier health benefits, WHY?
Our ohio turnpike workers at the gates make 18 bucks an hour for doing the same job only less manual labor as a walmart cashier.
The unions got themselves in this spot, let them get out, not at my cost. If every chrysler, ford, gm worker said " ill take a 5$ cut to save our jobs ", they would survive.
The stimulus package is fixed around union workers. Money going into highways, buildings, high efficient gov buildings, ALL THAT IS
MAINLY UNION JOBS! Billlion dollar Bailouts for auto industries that killed themselves, who is helpin the family who has struggled?
I have formed the opinion that I am for myself, screw this joke of a government plan thats gonna save us. GREED has killed not only our government( look how many appointees have been caught on late taxes) banks that have screwed thier loyal paying customers,.
The credit card industry should be controlled by the government, and locked into a reasonable maximum enterst rate, that my friends would help our economy.
i believe thomas jefferson said" we have the right to bear arms in case our government gets out of control! my freinds lock and load, we meet at Mcdonalds at dawn, alittle breakfast before taking our government back is a good idea.

debbie   February 18th, 2009 1:01 pm ET

A President that cares, WOW that is different, ain't heard anything like that in 8 years. President Obama trying to help this housing crisis, I hope the opposing team see now there is hope and slowly but surely a light at the end of the tunnel.

Joe G. (From Illinois)   February 18th, 2009 1:06 pm ET

It was said that George W. Bush got elected for a second term because of the war in Iraq. Because ”He was in the middle of something too important.” Obama??!!!!!!!!!! How many times..? How many billions for Housing already?! Ok.. Transparency tells me that “NOW” it's when he wants to write a bill and give billions to the banks to aid housing..! Just kidding.. I’m not fooled and I didn’t vote for him. What’s on the news? Anything good?

debbie   February 18th, 2009 1:52 pm ET

George W bush was elected twice? Yes he was but don't anyone else find it odd we did not have one problem with Florida votes this past election. Gore should of been our President in 2001and again I'm sure in 2005. Well maybe it is just me but I found that odd. Anyways we now have a President that is knowledgeable in the American dream and finally someone who is looking out for all not just the rich. The Iraq war is another vietnam so we didn't need it. Ben ladin should of been the focus not the people of Iraq. If this stimulus package creates jobs then whatever the republicans are screaming about they need to shut up. Give President Obama merits for at least trying to help . I certainly cannot remember any package floating around the past 8 years to help us.

jeremy   February 18th, 2009 1:58 pm ET

The stimulus package in its ideology is a good concept, but I am afraid it will fail. Simply throwing money at a problem that was created as a result of greed or a lack of vision by corporations and banks will not solve the problem.

I would tell the president, if I could, to let the economic situation take its course, allow some parts of the economy to fail. When a void is created, opportunity for other more successful companies will be created.

I believe the automobile industry must be replaced with a new type of industry. They have outlived their usefulness, and the products they produce are no longer wanted. Unfortunately the American public does not have much of an option.

To answer the question everyone is asking, will the stimulus package work? I believe the answer is no.

harry from oregon   February 18th, 2009 2:51 pm ET

how about money for us who have lost our retirement fune thru Merrill Lynch ? time ..we need to have patience..we have faith in our President..god bless...

debbie   February 18th, 2009 3:02 pm ET

What else do we have to build on besides what our President is trying to give us, right now the crisis in this country has to be reckoned with. Setting back and pointing fingers at President Obama and telling him the plan will fail before it has a chance to work is outrageously stupid on the republicans behave. I think they are keeping their distance only in hopes the stimulus will fail but seeing their faces when we start seeing some light then that will be priceless. What options do we have for 8 years the banks and the housing did what they wanted to do because no one was paying attention but now there is some hope and possibilities for Americans and our President has to endure the negativity from republicans while he tries and undue their carelessness.

RSnyder   February 18th, 2009 3:22 pm ET

At age 63, I have done everything right. I save money, drive 8 year old paid for American made cars, live within my means, keep my debt to a reasonable level, contribute to the max in a 401K and IRA’s, owe less than 50% of the value of my home (at current levels).....and now it is all falling apart.

It never occurred to me that I needed to be prepared for my wife and I to have no jobs at age 63, have our 401K's and IRA's worth 50 % less, pay $1000 per month to provide Cobra insurance for my family. Now it appears that I will have to wait until my home is in foreclosure and my savings are depleted before I can do anything. I can't get a second mortgage to tide us over because I have no income, even though I have 200K in equity.

I am not yet in danger of losing my home. It looks like it may take up to a year to get a job in this economy. I will rapidly deplete my assets. I cannot sell my home in this market. If I liquidate my retirement savings, I risk my future. If I actually can find a job, most of which I am overqualified one values wisdom and experience anymore... I will just have to work until I die with my boots on.

None of this is what I thought I was working for all my life.

A new Democrat is an unemployed Republican

Linda in NV   February 18th, 2009 3:35 pm ET

Very simple question.............why do so many people depend on government to keep bailing them out. What happened to concept of – "If you can't afford it, don't buy it."

Banks wouldn't be making loans people couldn't afford, if people weren't asking for them.

Obama cannot solve all of the problems people have made for themselves, I wouldn't expect him to do that.

debbie   February 18th, 2009 5:50 pm ET

I was raised with the explanation that a republican was for the rich people and the democrat is for the working people. I came to a conclusion as I grew up that is exactly the diference between them. As aggravating as it is to listen to McCain and his self righteous republicans complain against the man who is trying to find a way out. There is no perfect solution or a quick one but someone has to start and it was not a republican. Banks should be monitored as anyone who has been bailed out.

Mike P   February 18th, 2009 5:57 pm ET


75 billion thats it? I thought that is what most of this stimulus bill was for, to help this houing crises, and to "US" out. Where's the rest of the 787 billion dollars going? Oh yeah, not even congress knows because they admit not even reading the "600" page bill. They admit just voting for it not knowing what it contains, because not voting for it was not an option. Just great.

Roy Peck   February 18th, 2009 9:21 pm ET

Absolutely not. At some point people have to be responsible for their actions. This country has a personal responsibility crisis, not an economic crisis. Nobody forced anyone to sign the dotted line, but as long as the government keeps bailing people out, why be accountable for one's actions.

John S   February 18th, 2009 9:28 pm ET

I belive that the Obama’s 75 billion dollar forclosure project is nessecary, but I don’t like it. My family was responsible and bought a house we could afford; and now we will be paying for millions of irisponsible people who lived above their means and are now paying for it. Like I said, it’s nessecary, but I still don’t like it.

Kale R   February 18th, 2009 9:33 pm ET

Is it going to be enough? There are five or ten forclosures on my block, and I live in a upscale nieghborhood. I personally knew these people, and most of them were good, honest folks who were laid off or had their hours cut. I am pretty sure that the 75 billion isn't going to affect any of them. As for the others who lived outside of their means, I think they are rediculus.

Ali Bachari   February 18th, 2009 9:47 pm ET

I agree with his plan, but is not enough. Mr Obama should do is to put
six month moreturum on houseing foreclouser and if it needs should extended to 1 year in order give these people some breathing room in order to recupperate.

Linda   February 18th, 2009 10:14 pm ET

Great to see Michael Corbett on tonight's show! He is hand's down the greatest villain of daytime soap history and I'm very happy to see him successful in his new career!

Betty Schuler   February 18th, 2009 10:18 pm ET

This may not even be on point, but after hours of watching the damage caused by 2 airplane crashes, it is refreshing to have a President deal with the issues that face the average American. CNN, more real life stories on real American problems. My condolences to anyone who loses anyone in any type of accident (airplane, car, train, whatever). At the end of the day, people have to make a living and survive. I have NOT given up on the American Dream for all.

Dodie from Irvine CA   February 18th, 2009 11:20 pm ET

Just have all banks in the USA drop their interest rate to 3%. After all, the federal government is charging all banks 0% interest for lending money. Therefore, all banks will make 3% on their money and everyone gets their mortgage payments decreased.

How simple is that? For those people who purchased irresponsibly, too bad.

For those people who lost their job, the bill can pay their mortgage for a max of one year. That would NOT cost 9 billion dollars

lisa   February 19th, 2009 4:35 pm ET

So now we get rewarded for irresponsible behavior? Why do I have to pay for your house that you never should have bought in the first place? Crazy… America, what is going on? Is this really the direction we want to head?

People need to begin to speak up. The whole stimulus package is just bizare. Our poor children, and their future generations. Look what we are doing to them. We should be ashamed of ourselves.

lisa   February 19th, 2009 4:35 pm ET

So now we get rewarded for irresponsible behavior? Why do I have to pay for your house that you never should have bought in the first place? Crazy… America, what is going on? Is this really the direction we want to head?

People need to begin to speak up. The whole stimulus package is just bizare. Our poor children, and their future generations. Look what we are doing to them. We should be ashamed of ourselves.

Lisa From Rhode Island   February 19th, 2009 7:36 pm ET

I agree with Pres. Obama' s Housing Plan. I only wish that he would

have not given the lenders a choice. He should had made it

MANDATORY for them to help the homeowners.

I just feel that the lenders are overly protected

And please this is nothing personal toward the Pres. I think he is

doing a fantastic job and believe that he wil continue to do so.

Rob Genereux   February 21st, 2009 8:55 am ET

As we all know the the financial crisis is having a negative affect on everyone worldwide. If there is a time for a worldwide fundraiser, the time is now.Set up a "yes we can" fund to help pay for the US housing bailout costs and help with the huge debt. Get the celebs and rock stars out doing benefits. Post the the contibution totals on the all TV stations to show positive numbers (something positve right now would be welcomed). The US is the financial engine of the world. The engine is almost of gas and has to be refuelled, or it is going to be a long walk home for all of us.

Steve K   February 21st, 2009 12:58 pm ET

The Responsible One’s

Thank goodness for the responsible, accountable, hardworking American. If it weren’t for these people the rest of the United States would truly be in a dire predicament. I am one of those “responsible” people and quite frankly, I’m tired of being in that role. I have worked hard all my life, paid my taxes and have always lived within my means.

So how are the responsible in this great country rewarded? We get the patriotic duty of bailing out the rest of the country. Never mind that we didn’t give in to the emotional need for immediate gratification. Never mind that we didn’t take enormous risks involving other people’s money so that we could get huge bonuses. And never mind that we didn’t buy houses obviously out of our affordability range.

Not to fear though. Our elected government officials are looking out for the best interest of the people. That’s exactly why they turned a blind eye when things were clearly out of control on Wall Street. With Wall Street leveraging AAA rated, sub-par investments 30-to-1, it was only a matter of time before things would come reeling back to reality. But as long as Wall Street could make the public believe everything was rosy, the people would keep spending and pump up that precious GDP number. After all, consumer spending makes up about 70% of GDP in this country. Then there’s the mortgage industry. It should have been obvious to anyone with a modicum of common sense that if you loan someone an amount far beyond their ability to repay with no down payment required to boot – they will inevitably default. Yet, there were veritable mortgage loan factories doing this very thing.

To add insult to injury, many on Wall Street banked hefty bonuses for 2008. This, in spite of making billions of dollars in bad investments and costing you and me potentially years of retirement funding. If you’re holding typical mutual funds in your retirement account then chances are pretty darn good you’re a stockholder in many of these nearly insolvent Wall Street firms. Oh, and let’s not forget – we just gave Wall Street another $350,000,000 to spend as they wish.

Yes, being responsible carries a heavy price. I’m proud to be one of the responsible ones, but not happy about the predicament we’re in. After all, I could be living the high life, splurging and having fun knowing all along that when things get tough, the government will be there with its army of responsible ones to bail me out.

To all the responsible ones in this country – please try to keep your job, keep working hard and continue paying your taxes, your government and the rest of the country needs you. Again!

jenny   February 21st, 2009 3:51 pm ET

why should idiots who bought a house they couldn't afford be helped?!!! I have been waiting and saving my money since the housing boom for the prices to go down. With Obama's plan, it is not happening anytime soon. Can anyone see this as an obvious discrimination?!!!! It is a discrinimation against the RESPONSIBLE people! NO BAILOUT!!!!!

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