Shouldn't this very IDEA be illegal down to to the very core of this nation?

Article 1, section 10, U.S. Constitution:

"No State shall enter into any Treaty, Alliance, or Confederation; grant Letters of Marque and Reprisal; coin Money; emit Bills of Credit; make any Thing but gold and silver Coin a Tender in Payment of Debts; pass any Bill of Attainder, ex post facto Law, or Law impairing the Obligation of Contracts, or grant any Title of Nobility."

Seems to me the Fed is talking specifically about impairing the obligation of a contract. Although the weasel language that no "State" may do it could allow slimy corrupt politicians to argue that the Fed can but the states cannot.

What about all those legitimate buyers who have already lost their homes? Is it fair to bailout some of these, who are in trouble now and not help those who have already lost their "American dream." And just how will this work? Will a lump sum be given to each lender, to use at their discretion, with no strings attached? Or will payments be made for anyone behind, or struggling, for a few months and then what? Does one toss a life saving raft to someone drowning, pull him part way to safety, then take it away?

What makes more sense to me would be to have people apply for funds, according to their needs, with adequate proof and supply, until the crisis is abated. And this would not be just for those on unemployment, for there are many who have no jobs, no unemployment and no other income. Add to this adequate food stamps, to reflect todays inflation. If people then lose their homes, there's no helping them.

Again, if our government doesn't begin to balance it's own books, how can we expect the banks, businesses or households to do the same? And how can the economy make a comeback, unless we can curb our spending? Sure, it takes spending to make an economy but when we're in the red, at the end of each fiscal period....it spells bankruptsy, sooner or later.

Larry,

I could never imagine we would trust these banks to tell the govt the truth and not resist temptation to somehow defraud this system and money. To help people who never could afford these homes is ridiculous.

Larry,

I owe $24,000 on my home, Im hurting and barely making it now. I have paid on my home for 9 yrs and 6 yrs to go. I suppose I could give it away for what I owe , but I like it here. Paying high Insurance and taxes is also killing me. I see no help for me. No one is speaking for us!!

Larry you wouldnt what to give a $24,000 gift would ya??

Bill Mahr is the funniest person on earth!

No the money should come from either the TARP money or the stimulus packagae. and on another note:

The world knows the President had nothing to do with writing the stimulus package. The NY post cartoon has nothing to do with him.

Obama's trying hard to fix what mess should have been dealt with last year. I wish they would prosecute Mazzolo (of Countrywide) and use HIS funds to rectify this mortgage mess. Sad to say, the little guy will not fair very well while the banks will. Has anyone tried to make sense of the CountryWide's homeowner retention program info on their website? Loopholes abound! I feel CountryWide is the root of the loan mess, they started it, made millions and other banks jumped on their bandwagon.
Not all mortgages are for fancy homes with no value . Most are from hard-working folks whose loans reset at up to 17 % interest who weren't told the truth when signing..

absolutely i do but what worries me is its probably too little too late.
"sean in santa rosa"

The Borgen Project has some good info on the cost of addressing global poverty.

$30 billion: Annual shortfall to end world hunger.
$550 billion: U.S. Defense budget

I am not sure because it is vague about Who exactly will be helped! Conventional loans or only Fha and Va loans? Will all loan servicing companies and the actual mortgage invester agree to work with everyone who qualifies? I think if the govt was involved in lowering interest rates to 4 to 4.5 percent w/ no appraisals this would allow many more americans to refinance and lower their payments tremendously!

We have a Negative Amortization Loan on our property. Our interest rate is 7.5% and changing every month. We are current on our mortgage but we are only able to pay the minimum payment and the balance of the payment adds to the Principle Balance every month. We want to refinance but the value of the home has dropped. Our loan-to-value is about 90%. We were told that these loan were considered "Preditory Lending" and that the Lender was going to do something to help us. Since then we have not heard anything from the Lender. Will President Obama's Real Estate stimulas be able to help us refinance?

I'm so angry at all of this. My wife and i work 2 jobs each to pay our bills and have a simple home for our children. Now the government is telling me i was a fool for not living above my means because they'd pick up the tab for it all anyway. I'm angry, Larry. Very angry.

instead of spending more money for bailouts – government regulation of the banks and mortgage companies makes more sense

It is inconsequential whether anyone agrees or disagrees with the homeowner bailout or any other part of the stimulus package. What matters is that we stop trying to overanalyze everything. I learned long ago that if you aren't contributing to the solution, then you are part of the problem. The American media has become the problem!

Partially,
President "Barry" Obama has been emailed and faxed by me for the past 2 years Alternative and DIfferent solutions to our Nation's Financial and Economic Meltdown problems. He is first beginning to see the inter-relationship of each of these problems and how the solutions to them must be integrated to complement each of them.
I will say that President Obama could probably have written Dale Canegie's book "How to win friends and influence people." His elequence as a public speaker and persuasive manner of speech will be his most valuable asset and tool as President.

IF he gives me 15 minutes I can show him how to turn around our entire economy within three to six months.

I sent David Letterman a new top ten about the stimulus program. The first question in the top ten is what should we the taxpayer, distressed homeowner, and American Consumer feel about the new stimulus package passed by Congress and signed by the President.
ANSWER: A financial orgasim!!

MRCANDU10 (Cousin of Mr. Get It Done)

P.S. I called the Secret Service at the White House and commented to them, that in my opinion that the President and the Vice President should never walk into a public crowd together like he did when he signed the stimulus bill. This poses an almost impossible problem for the Secret Service and is totally unnecessary. Vice President Biden should remain as counselor in chief – not as a companion in chief for a walk and greet in a public crowd with the President. He should at least stay and maitain a minimum of 25 feet distance from the President during such a walk and greet.

In the 80s we had to bailout the farmers because it would be ruin if we didn't. Then we bailed out people who chose dangerous savings and loans in which to put their money. NOW we have to help people who lived above their means - regardless of their intentions. I'm tired of always having to fund these "fixes."

I really hope this helps the people! I refinanced 4 years ago for 6% interest it is now at 9.5% int. I have since filed a bankruptcy and had a home re modification to lower my interest down to only 8% for only 1 year now it is back to 9.5% I cant get a refi. because credit score is to low. I am barely making the 800.00 payment and it will go up as the interest rate does. The President should make the mortgage companies go back to when the interest was at the lowest rate( 6% in my case) and fix the rate there to help the people keep there homes. IS THERE ANY HELP OR SUGGESTIONS YOU CAN GIVE ME??

Hi Larry,
I sell bank foreclosures for three banks in Sacramento ,CA. Do you know how many times I go to a house and the seller is living there for free because they stopped making the payments months ago. They have not lost anything because they put little or nothing down. To top it off they have refinanced and pulled out a lot of cash without paying any taxes on this money. Now they want a bailout because they were foreclosed on! To top it off I am instructed to offer these people money to please leave the house without destroying it.
If the public only had the real picture.
Sincerely,
Jan Zebley
Realtor for 20 years

The US government is going bankrupt!

"Bailout and be happy to have a shirt on your back when this is over!"

Northport, NY

When I heard about this, I was so angry. I voted for Obama, what is he thinking?? These people have been living well beyond their means and they knew it. Let them lose their homes and teach them a lesson. Least of all, attach a lein to the home so that when they sell, all profits go back to the goverment. Where is my bailout for being responsible?

TAXPAYER MONEY:

It comes easy and it goes easy (in Washington)

It's just your money – honey...

The White House plan is to make us think there is a plan!

I am,and have been an excellent customer and consumer with Countrywide (Bank of America-TARP fund reciepient), and was denied a time and money consuming refinance of my interest only loan because I am not in or about to be forclosed on, nor is my interest rate due to reset until 2015. My credit score is 815, I have almost 2/3 of my loan request in equity, asked for no cash back and just wanted to change terms to a 30 yr. fixed–to be proactive and not find myself in desperate circumstances.I will retire in 1 year and my portfolio that I planned would support me if I continued to live frugally has declined by 35% and the refinance would have been the only factor I could controll. My loan is not owned or held by Fannie Mae, so I will be inelligible for projected homeowner help. It is FRUSTRATING for the banks who mainly caused the now extremely tight underwriting requirements to be receiving taxpayer funds, yet will deny refinancing to good responsible homeowners who pose virtually no risk to them!!

LATELY, NOTHING SEEMS FAIR TO HOUSEHOLDS THAT LIVE WITHIN THEIR MEANS. DURING THIS ECONOMIC CRISIS WE ARE BAILING OUT WALL STREET, BANKING INSTITUTIONS, AUTOMOBILE INDUSTRIES ETC. THROW IN MORTGAGE FORECLOSURES TOO. ALL I ASK FROM THE THE FEDS IS A LIFETIME SUPPLY OF BABY ASPIRIN SO I CAN POTENTIALLLY WARD OFF THE STROKE I AM ABOUT TO HAVE.

Why should I pay for someone that buys a home and can't pay for it.
And now the renter type people get no breaks and I have to pay taxs to pay for there bad investment. I ithink the Banks need to suck up and eat it and remember they are the ones that ower extended them self

Personally I am of the mindset that you can not spend your way to prosperity. I want to know just how much Pres. Obama is spending on his daily "road shows??" CHA-CHING!!!

EFFECTIVE IMMEDIATELY:

No elected government official should earn more than $65,000 / year by law!

Northport, NY

How will the Homeowner Affordability and Stability Plan help homeowners with VA backed loans?

It's too bad we got sick and have to take medicine. Some medicines have serious side effects, but we must hold our noses and swallow this 'bill'.
Lois

THE AMERICAN DREAM IS – OUR INTEGRITY –
AND THE BELIEFS THAT OTHERS TRUST IN US – IS WHAT IS –
AND HAS ALWAYS BEEN – IMPORTANT

Stoomzee
Northport, NY

Is going to be put in place within two weeks and sounds like a good thing for some in peril of foreclosure.

What I did not hear him address and I am quite dismayed actually. He wants to "preserve" the present prices.

What I would like someone in government admit to is that inflation hit the housing market in a big way and is probably the root cause of the present collapse. What I never understood and everyone seems to be looking the other way, is why a home worth $39,000 when the last Administration took office now costs $120,000.00 or more, and everyone seems fine with it. What's wrong with that picture? Why didn't someone protest that insanity?

This is going to help a segment, nothing it seems for those teetering but not in trouble right now.

We gonna need to start thinking about how to bail out Social Security very soon if we keep spending money like water!

If someone purchased a home in May of 2008 and they are holding their own and working hard and INVESTING in that home as people should do, then what benefit will they see from the Presidents spending and spending and spending??? Anything at all??

I bought a house in Arizona two years ago for 307K, have made all my payments on time, and now the house is worth 180K. I am unable to refinance from a 30 year conventional at 6.75% interest to a going rate of 5.16% because there is no equity in the house. I also understand the refinance may not include pre-payment penalties. For me that is 5% or 12K. I simply cannot afford that amount of disposable cash.

I agree with yone point. There was a huge amount of bad behavior in the market, not by the consumer, but by the lender. Thanks to them, my home is not worth staying in and I should vacate for rent at less than half the cost of my house.

Ron
Mesa, AZ

The root of the problem ar mtges. The moral issue is a dead. This was an argument back a yr ago. It is a cancer. Everyone is going to be effected monetarilly. Specifically those with low mtges or who outright own there homes. They get to enjoy the rebound first.

Thanx

I rent because I couldn't and can't afford to buy a house, why do I have to help others to stay in their homes when I can't own one. I was responsible enough not to get a mortgage I couldn't pay.
If they can't pay they should rent like I do.

I wonder if the people who complain about helping out others in misfortune due to this financial struggle would think the same way if they were in the situation of those who are facing homelessness. It's easy to judge and impose when your own stability is not threatened... for now.

Larry,

For years we have walked the straight line and tried to live within our means............we have no mortgage and own our house outright....it is valued at between 250,000 – 400,000. Why is it fair for those folks who have not tried to live withing their means and find themselves underwater with their loans to have a bailout and worst of all.............we pay for it!!! It is not right.......

What happened to fixing from the bottom up? Divide the money that is supposed to go to the financial institutiions among taxfiling households. Mortgages would be paid along with other debt (banks would have their money). Those that have no need for help will have money to spend in the economy. Seems very simple to me. Why give the money to people who have proven they are not trustworthy.

Mr. Stein asked what is the difference between bailing out home and retirement. If your home loses value than homes around it does as well and so on and so on. Lose you retirement may not have the same ripple effect. That is my take on it.

I will take a back seat to President Obama, and let him drive. He is just as brilliant as Ben Stein, if not more, and may I add he is a politician, Ben Stein is just a wannabe. Republicans are so scared this plan will work, because they know if it does, they will never step foot in the white house again, in the Hip Hop Generation we call them haters. Ben Stein should get back to acting (bueller, bueller).

why the government does not offer 0% very low interest loans to teachers, policemen, firemen, nurses....It will be a good way to reward them and will get the real state booming again

Why are my comments always awaiting moderation? There are no cursewords, my comments are respectful, what does it take??????

Hi Larry:

I am a single homeowner for 37 years. Last year I made a large loan on the home in order to do many repairs, and invest in a company I just started. I also work for the government for 22 years. I had to transfer back to an old job within the government which is $2,500 a month less due to lay-offs in California and now I am paying almost 100% of my current paycheck to the loan. If the interest could be decreased to 3%-4%, I could make the payments easily.

I noticed that China has decreased the interest rate across the board for everyone in china in order to stimulate their economy and appears to be working.

Would it be possible to Federalize all banks asking for hand-outs?

Sir;
i would like to thank the representatives for their attempt to aide in the failing real estate market however I still believe they are focusing on the wrong issue. Why do economists and government officials choose to hold the housing market as the sole source of our economic problem? American's as a whole have held entirely too much credit not including thier home... How can increasing credit solve an insolvent credit crisis?

Respectfully
Mr. Roberts
Southern California

I dont get it. I am not irresponsible or unscrupulous and have made my house payments without fail for the last 12 years. I am laid off
and struggling. Why are they limiting this program to Fannie Mae
and Freddie Mac borrowers? Most of the working class blue collar workers got their mortgages at banks who were not Freddie or Fannie.

why is the mortgage mess portrayed as the devaluation of home values? does the lesser value of your home have anything to do with the ability to pay your mortgage? drive a new car off the lot and you are upside down. does my 401K value being 30% of what it was have anything to do with wether I can pay my mortgage?

I agree fully. This is the time where we as americans need to look toward helping each other. With job loss at its highest more people are turning to crime just to keep their homes. But how does this plan effect the first time home buyer?

All the Bailouts: What about the responsible, who worked hard all their lives, bought what they needed when that was all they could afford, are honest, and now have a little extra. We went without to pay our home off. Why are the irresponsible, governments, companies, crooks and people being rewarded for bad behavior ? Everything should take hard work, and their are needs and WANTS – Why can't people see the difference? People also need to help themselves, be honest and not be rewarded for bad behavior. I dare you to print this one.

How about putting Real estate appraisers on the show. They are the real experts not these sales people you have on TV. Wake-UP and talk to the real experts.

as a canadian wintering in S.C. I hear lots of negatives about the plan, I hear little about solutions. If your not part part of the solution,, get out of the way.

why not giving a green card or something equivalent to foreigners buying a house with at least 50% down. A lot of Europeans would like to buy in the US but they are scared of the visa situation....

I'm watching your show regarding the forclosures, and it makes me sick! I agree with Ben Stein – why should we bail out the ones who lived way beyond their means? I'm all for helping those who have lived within their means, and found themselves without a job, or other unfortunate events in their lives. Our family completely lives within our budget – if anything, a bit below – I've even had the same car for 10 years now, while I've watched several people I know lease a new car every year! It sickens me, and I honestly think we need to let these people sink. Don't help them get afloat, as soon as they're rescued they'll just do it again!

Why not take away the tax write off associated with property taxes for anyone who takes advantage of this 75 billion home foreclosure plan. This would properly discourage use unless absolutely needed and would give a fairness to those who make their payment and work hard.

If a family with the help of their parents is making the house payments each month and homes were going for the price at the time in 2006 and now all homes around them are being in foreclosure, should we be required to continue to make payments at the higher proce when the homes around them are being resold at $100,000 to $150, 000 less? My children were required to provide documents along with me to pre-qualify (Wells Fargo) even bid on a new home and to find out that the company was allowing others to do 80/20 loans or not qualifying propesctive customer. if you play by the rules, you have lost, if not, oh well, walk away and let the banks eat eat as true dedicated people are teaching their children to ride it out and do the right thing, MAKE THE PAYMENT!!!!!

NO! It rewards bad behavior and greed.

I am disgusted with our Nation’s Economic Meltdown. We have members of Congress yelling at Bank Executives for gross misuse of public monies, when the Congress itself created the laws, which encourage them to do just that. Our government is printing money we do not have and giving it to businesses that are proven failures to do it again. This is unconscionable, our children and grandchildren will not be able to salvage this Nation. It is my opinion that not one nickel should be loaned to any business or individual that has proven that they are financially irresponsible.

The people who took loans, they knew they could not afford should reap what they sow. The Financial Institutions who lent these people money, were encouraged to do so by the Federal Government. The politicians have created an aristocracy, which consists of people who work for the government. They have created a system that has nothing to do with Merit, but only to do with who you know and time served. The American Tax Payer can no longer afford to support this government. We cannot afford to pay someone who retires at an age of 43, a pension and medical benefits for the rest of their life. The retirement age is 65 and that is when your pension should begin. There are people on disability that are not disabled, there are people who get more money back on their tax return than they paid in. Just throwing money at this and doing business as usual will only prolong the inevitable.

If we do not correct what got us into this situation we will surely be here again. We should have let every bank fall and let the chips fall where they may. All the government is going to do is continue the madness a little while longer. The money it takes to sustain this government is unbelievable, without changing the way we govern we are doomed.

Eric M. Brittain

yes i agreed with barack obama 75billion plan today

Hi Larry,

I watch your show every night and stay tuned to CNN everyday. I am scared of where this country is heading. We started this crisis with the housing problem and two bailouts later it seems that we have no sure answer that these attempts will stabilize the economy will work. I am a strong believer in earning my money and paying my taxes. Don't you think that it would have been easyer to take these two bailouts and divided by approximately 305 million people in the us. Don't you think this would have solved all of the issues. Banks, Wall Street and home owners.

I think this plan is well thought out and can offer an opportunity to people who, through no fault of their own, lie on the brink of foreclosure or have been prevented from refinancing due to the drop in housing prices. It cuts out speculators who drove up housing prices by taking advantage of irresponsible loan practices. Unfortunately it doesn't help get rid of the onerous "Mark to Market" valuation of real assets, but ya can't have everything. I found the remarks of Ben Stein on this subject about as useful as his past statements on the state of the economy and the biological sciences (think horns on a heifer as a metaphor).

The Most responsible homeowners are getting nothing! What if we're NOT under water (yet) on our mortgage and have been paying all along, and our annual payments are LESS than 31% of our income but because of a decrease in our income AND unemployment, we now are at risk of not being able to meet our mortgage debt? We were self-employed and couldn't get enough business to stay in business. We have one special needs child in an expensive special school for which we receive NO tuition assistance. Our only income is from an IRA, Keogh, and an investment account (all of which have fallen drastically because of the markets tanking). We also have no health insurance because we couldn't afford it. One illness will cause us to lose our home. From the sound of Obama's speech today in Arizona, there is NO HELP for people like us!

I don't believe in the bailout at all, especially for those who knew they should never have bought a home because they couldn't afford it. It's 50/50 as who to blame – the banks & the homeowners.

We are just getting this country more & more into debt. It's a joke. Where does it end?

Yes I do agree. We need to help homeowners to stabilize the economy.

The comment was made about getting a hold of the "right" person at the bank that holds your mortgage...I work for Chase...it is so crazy that they can't get policies in place fast enough...we are not prepared to modify all these customers...people will fall thru the cracks....

Larry
I don't see where in the plan there is any help for the folks that have been making their house payments on time...
Couldn't they just impose lower rates across the board and make things better for EVERYONE instead of just those that got in over their head?

Larry,
I'm tired of hearing that people owe more than their house is worth. Isn't that what happens when people buy at the height of the market? If they could afford it then and didn't lose their job, then they should still be able to afford their home now. I know people that are purposely not paying their mortgage so they too can get this bail out.
Lori
Northridge, CA

I am all for this forclosure bill.But my main worry is ....How fast will it take to put it into affect?
I have a close friend of mine that has been trying so hard to keep her home. She is having a hard time with the foreclosure on her house.
So she can really use some help. How would she go by getting this help?
Anna OIson
Oroville, Ca.

I don't agree. Prices need to fall faster in order to avoid a "zombie" real estate market in which banks refuse to lend. One just needs to look at Japan in the 1990's for an example of what not to do at this time.

if the government can assist the financial institutions, auto manufacturers and other dead wood organizations, why not help the common man – the taxpayer in his time of need.

Yes I glad the 75 billion dollar plan due to foreclouser and other stuff

The U.S. Post Office (third-largest employer in the United States) should consider delivering the mail once a week (Wednesdays), utilizing this massive work force in more creative ways and saving a large percentage of an estimated fuel budget of $3.2 billion.

no I do not get agree at all with this stimulus plan. Capitalism is being further destroyed by this action.

yes I am but is my loan financed by Freddy or Fannie. I think it is wrong that some of us lived above our means. I had this house for 8 yrs and now when I was laid off and had to move to a new city, I could not sell the house as it's value dropped by $300K.

I am renting it and even then I have to put money from my pocket

Larry and panel,

Why do I have to help bail out those fools who borrowed more money than they could afford to buy a house they couldn't afford all the while why i get up go to work and bust my hump every day , make my mortgage payment every month for the past 13 years? Why should the govt. rescue some of them? Banks love it they keep getting money and business, what do I get?

Why is everyone criticizing everything Pres Obama comes up with.

CNN, you are getting very biased, and I don't like it. I won't be watching anymore if you keep this up.

Larry, please stop interrupting your people all the time...let them finish a sentence. Please

I'm curious why we're viewing foreclosures as something so terrible? So what happens if one stops paying on their home and the bank takes it back? You start over again, rent for a while, save your money and eventually buy another house.

Hello Larry,

I was laid off in January and want to keep my home.

How do I work with my bank to keep my home? What steps should I follow?

I am up to date on my mortgage, but I am worried about keeping up.

Do your guests have any suggestions on what steps I should take?

Thank you for your help!

Dean

There are MANY responsible people when they borrowed, had the income and money to pay their loans. Now many are either out of work or like me, was reduced to a job that pays $30,000 LESS a year. That is NOT irresponsible!!!

When I did something wrong as a child, my Mother said no, and gave me the appropiate punishment. Common sense tells me that we should apply the same discipline to home buyers and borrowers who should not have borrowed money they couldn't pay back.

yes i agree for Pres. Obamas plan its just as though that he has bailed out thousands of people.His 75 Billion will help some people but not many.MR KING

No. The banks knew what they were doing, as did the people receiving the loans. Why should my tax dollars bail the banks and the people out? I think the people facing foreclosure who knowingly (and trust me, they knowingly accepted loans they knew they could not pay back) took out these loans shoud be forced to sell their homes and buy affordable housing. Yeah, I know, not gonna happen. Still, a better solution than billions of dollars of taxpayer money needs to be devised. I'm just saying . . .

We're saving the country. I won't get a thing. That's OK. I'm safe in my $30,000 house and my 6 figure salary is safe. But other people need help. Help. It's the RIGHT thing to do.

Yes sir I agree with this plan. It beats doing nothing. But the people that over-extended themselves should not be helped out. This is the tough choice; who actually has been paying their morgage and who cannot pay their morgage, because they didn't qualify in the first place. These people are the ones, anlong with the lending institution that approved their loans have to share some of the responsiblity of the economic collapse.

Are there any provisions in this bill to deal with pre payment penalties that many borrowers have? These fees (pre payment penalties) can sometimes make or break a deal.

It would be easier to evaluate if I were watching on a news network that did not caption one of the guests a "best selling offer" and have another guest who talks about foreclosures "spreading like wildflowers". Are there no more literate people left in the media?

No. Your trying to stabalize an already over inflated market. That is
not smart. Let the market fall and those of us who have been
waiting in the wings will start buying.

President Oboma and economist should have taken note from Bill Mair. "Wages have been stagnent for 30 yrs., forcing people to live on credit & home equity". I don't see morgages being the crisis. Keeping up with the cost of affording a home is the crisis. We taxes we can't even afford the up keep of a home. Just a drive thru 20-30 yr old tracks & in the country.

I see you are talking tonight with real estate folks–but not bankers. Certainly real estate folks want anything that will help move houses. But they don't have to take a reduction in revenue to comply with the Presiden'ts plan (they have no skin in the action). The banks do!! Let's talk to bankers and see how they see this plan

Howard

Whether we agree it or not..thats not the question..this is what every responsible government or president will do at the time of crisis..i wish the plan should help millions of people which will pave way for speedy recovery of economy...

we cannot get a loan as we were victims of a scam and yet we are supposed to pay for those who were foolish and some who are were victims.
we can pay and have the down but cannot qualify because of the credit score the banks want.

I think Obama's plan is great. It's not that people were living above their means, it was that the banks were allowed and DID give loans to people who couldn't afford it. I don't know why anyone would be opposed to helping their fellow citizens who cannot afford their loan given to them by the BANKS, which we bailed out. I hope others can see that.

What about the homeowner that continues to pay their mortgage payments every month like clockwork? How do they get helped?

Why doesn't anyone on the panel mention attorney-staffed independent loan modification companies? They do forensic loan document audits to find lender violations of the Truth-in-Lending Act.

Why is falling home values a problem? If you own a home and you are going to keep it, the value of the home is not important. What's important is the monthly payment.

If the home value falls, you may not have 20% equity in the home. Therefore, you can't refinance at a reasonable rate.

The solution to the problem is to allow home owners to refinance at a reasonable rate (e.g. 5.5%). If they can't afford that rate, then bad luck you should not own that home.

This seems so simple, so why is there a problem?

What about all the people who's houses have already forclosed? The talk is about helping people from forclosing but there needs to be help for people who have suffered already from losing their homes.

I don't agree with it. Artificially propping up home prices keeps me from being able to afford a home where I live. Why are we only concerned with what happens to those who have a home? What about us have-nots? Don't we deserve a break? This is just what a lot of us renters have been waiting for. Let it happen!

Hi Larry,

No I do not agree with the President's Bail Out for the forclosures. I would like to be bailed out myself. However, my husband and I have worked all our lives to pay our obligations. We were certainly told by many banks that we could afford amuch larger homes than the ones we have lived in, but we knew that was not realistic.

I think the banks should offer an extension on the forclosures and an affordable interest rate. However, these homeowners should be responsible for their own misfortunes.

Debbie

With this bailout, what is the incentive of people actually paying their homes, to continue to pay them, if the neighbor is getting a bailout?
This bailout will force prices even further down.

I've heard that you can stop a foreclosure in its tracks by simply filing a court request for the original paperwork, since most of them have been lost or destroyed by the original lenders, before the loans were resold. I've heard that can put off a foreclosure for several months. Is that true?

I feel it will help us in our situation. My husband is retired and wer bought a home late in life. Our frist home, we have pertitioned our lender for a lower ourinterest rate at least to 5%, so that we can live out the rest of our lives in this home. I think the president's plan is great. After working 45 years of work with general motors and paying taxes, we should feel safe in our aging years. Oh and by the way, we stay current on our mortgage.

I am unemployed for the 2nd time in 18 months. I need to refinance my home and can make payments but will any lender qualify me?

I do not agree that this plan will help any where near the amount of homeowners that has been be forward. This plan will simply set an artifical bottom that will eventually be penetrated to get to the real market values. It time unfortunately to let failure take it's course. Only the very special people who have demonstrated the ability and willingness to make all payments, followed all documented agreements with their lender, and have not been given a fair shake by that lender should qualify. This to me might be about 1/2 million households and not nine million.

The only people who don't agree with this stimulus are people who are not affected by this economy. I'm a 43 yr old hard working man who is paying his mortgage on time. I have good credit but could not refinance because banks were not lending money. I spoke with my mortgage company today and they prequalified me for a refinance and will reduce my payment by $300.00 per month. Thats the impact of the stimulus.

Larry, I never write in to the show even though I watch every night, but Barbara's statement about the whole crisis would not have happened if housing prices didn't come down. Isn't that like saying that the collapse of Enron would not have happened it the stock continued to trade at artificially high prices? That is very misleading. She is suggesting that as long as we don't notice all of the bad behavior occurring, then housing prices would have stayed inflated and we wouldn't have a problem. It's like saying as long as everyone pretended there was gold out west the gold rush would have continued. I truly believe that Barbara's statement was irresponsible.
Patricia

Can someone who isn't being foreclosed on lower their own payments for being a "good citizen" who will be pitching in to support this package?

No way! Real Estate is an investment, and sometimes you loose money on an investment. This is going way too far.

I lost some money on a stock I bought last year...can the government cut me a check to make up for the difference between what I paid and what it is worth?

I had to refinance from a subprime loan last year and it cost 18,000 dollars american home mortage would not negotiate the early penalty fee. I would love to get that back, but took it on the chin for signing up with a bad loan.. The government is not the answer.

There was not any emphasis on Principal reduction. This is very important for homes 'under water'. Will principal reduction be done?

I disagree with the plan. The plan doesn't help anyone but the banks. Homes are investments just like any other investment. I had to cash out my 401K to be able to make my mortgage payments. Where's my relief? If we are going to bail anyone out, we should bail everyone. Let's all benefit from the relief effort just like how we all suffer from the mess.

it's time big banks and corporations become small again and care about the people they serve.

An absolute waste of money and I'm a democrat. This proposal does not address either the excess housing already for sale and will have no meaningful impact on future excesses of housing for sale. As long as housing supply far outweighs demand prices will continue to decline. At best this is a bandaid on a major wound.

It is disgusting that these people have been picked like a cherry tree to have their homes rescued.............Who cares about the older American and their retirement funds? T. Decker

Larry,
Let's be for real... Do we as a country want to get out of this mess?
If we do, Bail every one out and let's get a fresh start and the economy will recover. The folks who were living beyond their means didn't get there by themselves, someone gave them the loan!!!!!!!!!!
Joe

What is wrong with falling home prices? Nobody seems to concerned about my 401 k and I paid 8.75 for my home and never missed a payment.

not particularly. why don't they directly bail out the american home owners rather than the banks?

Absolutely not. There is a food chain in every process and I've been telling my kids to wait to make their home purchase because prices were too high and a drop was enivietable. Well what i didn't tell them was that their tax dollar would be used to save the folks who didn't have the good sence to wait. I look very stupid when my kids ask me what happen Dad?

Larry,

I had heard that the plan included lowering the mortgages that were under water (not court ordered bankruptcy adjustment) so that monthly payments would be lower as long as the owners would pay all or some portion of this reduction when economy improves and the home owner still owns the house. Is this still true?

What some viewers cease to understand is the consequences of inaction during this crisis. A failure to act would ensure further economic decline and an increase in unemployment so those that may have got their house within their means will be forced into foreclosure as well. Stabilization is needed, and needed fast.

Upon death the bailed out homes should be turned back to the US Gov to recoup the taxpayers money. The kids shouldn't be responsible for our selfishness. Use your heads, there are answers.

I completely dis-agree. Why do I have to bail out citizens who chose to not be responsible and over-extended the type of home they clearly knew they could not afford!! On top of it, I will be taxed at a higher tax rate under Obama because I have worked hard to advance my career to only pay the advancement back to the federal government for these types of programs.

I'm sorry but I think we should divert the billions we are spending in Irak, and use it to help our ailing economy!

This plan doesn't go far enough.
The problem with my mortgage is that my house is worth less than my mortgage.
If I was reading correctly, this plan offers to let people refinance at up to 105% LTV, but I don't see that helping a lot of people.

The government should just let people refinance at what the home is worth. This would allow people to fix the loan, lower the payment and free up some spending cash. This will also give the economy a boost in the future when home prices start to rebound.

Hello Larry

People in politics that oppose the money released for mortgage crisis, must be asked one simple question. WHY DOES EVERYONE PAY TAXES? Their hard earned money? This is only to help the nation when there is a crisis of this magnitude, not to spend that on war
& kill people in other countries. So Mr.Obama is helping the nation. What part of this cant the republicans & other people who oppose this understand?

I do agree with the President's foreclosure plan. I am not in danger of losing my home, however, something has to be done and be done immediately. If we can bail out banks, and auto companies, it is surely time ordinary people are helped. And the incentive to the banks is something that could make it work.

Lloyd M Abrahams CPA

China has decreased all interest rates for everyone! I bet this will stimulate their economic conditions

Ben Stein is right, let the prices fall and the demand will increase. The market will take back what it needs no matter what floor you try to put under it. Future generations will be paying for the people who made bad choices out of greed, Pure and simplle.

President Obama said today. if you bought a house above your means to pay for it. you won't get the help.....

The money on the sidelines is waiting for the waves of foreclosures to stop before so the prices can stabilize and a rally can happen. Obama's plan seems to do little more than delay a very large wave of foreclosures for 5 years. Doesn't it seem logical that a five year delay in the foreclosures means a five year delay in a healthy housing market recovery?

President Obama's new plan to save homeowners "who play by the rules" leads me to believe that if I quit paying my monthly mortgage on time, I can qualify for a lower interest rate and possible reduction in principal.

Better yet, after the bank writes down my loan, I can then make lower monthly payments and walk away with $1,000 a year for up to five years. Sounds like too good a deal to be true!

I am outraged about all of this. Who is going to bail out our children and grandchildren who are going to inherit this astronomical debt? I am angry because banks are getting bailed out and then they are raising my credit card interest rate.

I hope this new program has a process or procedure to assist homeowners with finding out who actually holds the mortgage note to their home. Many homeowners are having problems finding out who owns their mortgage note.

I think everyone has forgotten the fact that most of these people with fear of losing their homes also have lost their jobs...and with so many people out of work...this plan will not work for many...

i am 53 dissabled i built my home it was paid for took out a loan to pay off bills i had all my money in a reit fund in march they called said they were no longer going to pay divadinds i have used all my savings to save my home are they going to help me

I totally agree with Pres. Obama's non-forclosure plan instead. The banks should be grateful to get partial payback rather than nothing at all. The banks dont want peoples houses, thats not their business

Someone please do the math 75B/9M = roughly 8333. Who does that help when homeowners are under water well beyond 8333.

What am I missing here?

I am a renter. I did not buy house because I did not have enough to put 20% down.

Now, I have to pay mortgage for those who bought home with 0% down and bail them out.

I am outraged.

Let prices go dowm and have market correct it rather than bailout.

Hi Larry:

Yes, I definitely support the housing plan. As I ride through the community and see all the foreclosures and talk to individuals that are on the brink of losing their homes, this is support for troubled families.

Everyone caught in this debacle are not living above their means. Their means have been lowered to the loss of jobs or having to take a job that pays less after losing their initial job that covered their expenses. Has anyone checked out how many people will be terminated at the City of Phoenix and more to come from the State and County, or the many businesses that are no longer in existence. Arizona n particular is heading towards a major disaster and any support that this State and others in the same situation can receive, is welcomed.

I am bit taken aback with all the bitterness of the American public. No sensitive whatsoever. Oh, that's right until it happens to you, who cares? It is my prayer that this effort serves as a catalyst for positive change or improvement for homeowners.

Larry,

You have 3 real estate investors as guest in your show. Of course they are going to tell you that this bailout is good.
I don't remember any of 3 guests complaining about high home prices during the real estate bubble.

So they say that this plan is good for everybody. Do they forget that there are renters out there? Responsible people who didn't buy because prices were too high. Those people are waiting for prices to come down to be able to afford a house and Obama's plan is to keep home prices artificially high so renters will never be able to buy.

I live in Orange County, CA and prices are down 30% since 2006 but they are still 200% higher than they were back in 2000. Until prices come down to reality, people won't be able to buy homes.

Americans wanted to live above there means, Lenders had greed in there eyes. We helped out the lenders. Why not help out the people the lenders preyed upon.

This is crazy! The rich made a lot of money and now the middle class will bail them out while providing welfare in the form of debt foregivenes to the irresponsible. this is not not America!

The late Dr. Adrian Rogers said it well: "You cannot legislate the poor into freedom by legislating the wealthy out of freedom. What one person receives without working for, another person must work for without receiving. The government cannot give to anybody anything that the government does not first take from somebody else. When half of the people get the idea that they do not have to work because the other half is going to take care of them, and when the other half gets the idea that it does no good to work because somebody else is going to get what they work for, that my dear friend, is about the end of any nation. You cannot multiply wealth by dividing it."

People need to start suffering the consequences of their choices as opposed to being taken care of by those who live more conservatively.

Sir,

Plan is very good. however I got a question.
How will government reprice mortgages which are worth of 5 times actual value. will this encourage the downward spiral of falling home prices? will lenders negotiate with borrowers at all in this case? how will plan deal with these cases.

Sree
Frisco/Texas

No, I work two jobs and live within my means. Now I have to pay taxes for bailouts. Is that an American dream ? Bailout, bailout, bailout.

Yes, I understand your frustrations from those of us who are paying our mortgages on time and as agreed upon. We might feel "slighted" by the bail out of all those facing foreclosure. But as a realtor, I will tell you that we all will benefit in helping to slow the number of foreclosures because this will ultimately increase our own property values. As stated, a little buffer can do a lot of good at this stage.

Amanda

You know the only thing I have to say about this is HJR -192

FAIR for ALL homewoners...a 3% 30 year fixed US Gov't guaranteed loan...REFI THE ENTIRE MORTGAGE MARKET
Use June 2007 values (pre-bubble and June 2007 FICO scores) FAIR FOR ALL!
EVERYONE WINS...NO ONE IS UNFAIRLY TREATED

Why give the money to the ones who have money? Give it to the ones at the bottom and let them send it to the top. They only buy things that they don't need. Who knows if they'll even give it out when necessary. It will be gone by then.

How is the bank losing money by doing a loan modification? Isn't the real problem the fact that home prices have fallen so much that a huge number of people are underwater? How does the Obama plan address this situation?

I have been unemployed since August, have two kids in college, am divorced and have a FICO score at 735. My bank has been mulling over giving me a lower rate since November and I cannot get an answer.
I have not missed a payment and I still wait.
I hope this plans really helps those of us almost delinquent.

President Obama i have lost my job . I have alwyas made my payments. Never lived above my means. No job=no refinance.

Please lower my rate. reduce my cash flow before i go through all my savings and get into future foreclosure situation.

help me nip it in the bud...

thanks

No it will not work>

In the "Wealth of Nations" Adam Smith made the point that market order is more beneficial than that created by politicians, who are themselves creatures of their own passions and whims.

Smith saw the role of government as one of national defense; protecting individual rights; protecting commercial interests in relation to foreign entities; and essential public works such as roads, bri

This money will be absorbed by those who have the ability to acess it, many with greed or other such motivation.

The home pricing encountered a period of feeding frenzy, resulting in the spiraling of prices to levels that had absolutely no relativity to value.

There is a search for direction but the giving of our tax dollars is not the answer.

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.

I HAVE BEEN SERVED WITH COURT PAPERS REGARDING FORECLOSURE BUT I AM CURRENT ON MY LOAN AS PER MY LOAN MODIFICATION BUT MY INTEREST RATE WAS JUST FROZEN FOR 5 YEARS. I HAVE A 1ST AND 2ND AND TWO DIFFERENT SERVICING COMPANIES BUT THE MAIN LENDER FOR BOTH IS WELLS FARGO IS THIS LEGAL>

Larry, how can a stimulous package to reduce mortgage interest help me a person who has never missed a payment but has been unemployed 2 times in the last 18months. I need to know if I can even take advantage of Obamas new plan since I doubt I can qualify without employment. I am not alone

Will the government bail out the oil companies if their fortunes turn the other way? Have you checked the price of crude oil lately?

I am a realtor in California. Clients of mine received a modification from Indy Bank. It gave them a 3% interest rate fixed for 5 years, then 4% and so on. It allows them to stay in the house until home values go up. It costs the taxpayer nothing!!! If they stay 30 years, the last payment is a balloon payment. They will easily be able to sell their home in a couple of years and get out without anyone footing the bill.

Banks could extend loans out to 40 or 50 years. They could leave the interest rates low instead of gouging people with these high adjustable rates. Leave them at 5% and half of the foreclosures would go away.

The government does not need to do anything but require banks to modify.

Did you know the stimulus package originally had a provision that allowed people to deduct the interest on car loans and Harry Reid replaced that with a high speed rail between L.A. and Las Vegas?

I'm a mortgage broker who can't refinance a solid borrower into a money saving mortgage but can't due to rediculous underwriting restrictions, meanwhile someone who lived outside their means are going to get bailed out. Why don't the responsible deserve some help too??

I have always lived within my means. I have been laid off 4 times in the last 7 years. I am laid off now. I never missed a mortgage payment. I have no credit card debt. I don't buy things I don't need. I don't take vacations. I have managed to scrimp and save and live off of my savings. I am not collecting unemployment insurance. I am 55 years old and I am well aware that in addition to all of the other problems in our economy, people my age are discriminated against in employment. Things are grim. But, all around me it seems the reckless and careless and irresponsible are getting handouts. The handouts should go to the careful and responsible among us as a thank you gift for paying our bils and our taxes on time as required.

If I were given a rebate/refund, I would put it back into the bank as a mortgage payment or to the grocery store to buy food. It would stimulate the economy.

No, I don't agree with bailout.

The banks should have never been bailed out in the first place. As parents, we teach our children that they must be responsible for our actions. Why should we bail out banks and companies that made poor decisions and got themselves in this mess. There are plenty of other responsible companies ready to take their place. I for one will not deal with a company or bank that took bail out money.

Of course I agree strongly. This action came in little late. The house market needed this first.

This is one of the first problem that ruined our economy! From all of this mortgages that were not documented at all.

I hope this plan will save 10 million homes under foreclosures.

You know what, I have not been behind on my mortgage and I don't live above my means but that does not mean I will sit by and watch others be put out on the street. Everyone make mistakes. We have spent millions of tax payers money for years on the iraq war and not one republican questions that. I would rather help someone keep their home than fund a war we should never have been in in the first place.

FOR helping out homeowners who, through no fault of their own, are victims of bank greed.

Getting out of this mess will take some doing, not obstructionism. Time to act, not just say NO.

I totally agree with what the presidents Plan to Help homeowners in danger of foreclosure. How about the victims of foreclosures when the Bush adminstrations failed to act. How about Us. credit has been ruined, our American dreams shattered, No one is even talking about us, how about helping US clean up our credit..

I totally disagree. We work, paid off our house and saved our money. We make just over the amount to qualify for the stimulas checks but yet our taxes keep going up. I am tired of the government making excuses for those who show no responsibility.

I am angry....maybe I should run up debt and wait for someone to bail me out. Maybe not...and at least I can sleep at night!

People you must take some responsibility for your actions......and if you can't figure out that the digital switch was to happen (but wait they moved that out because people didn't take responsibility) then maybe you shouldn't own a TV either!

Absolutely,
I’m a Republican and have been sorely disappointed with my fellow Republican’s who have failed to act. This “Crisis” may not have been avoidable but it took President Obama and his “Out-of-the-Box Thinking” to raise a solution. It is a very good start.
Wayne, Tampa, Florida

No I don't agree with the bail out. The problem is NOT that house values have come DOWN. It's that the values had become so ridiculously inflated – so much so that my wife and I have not been able to afford a house in the DC area on my military pay. We resisted the temptation to buy a house beyond our means and this bill will continue to fix the prices of homes so high that I fear responsible citizens like us will never be able to get into a home of our own.

I agree with plan. Its a joke that there is so much noise about rewarding irresponsible home owners while there was no peep when we rewarded Wall Street with $700B for creating the mess!

I am so sick and tired of paying for others to live above their means. My husband and I both work full time. We pay our bills and no one helps us do this in any way. We manage to put back money each month for our future. The way we do this is we live within our means. If we can not afford it we either save for whatever it is we want to buy or we just decide it is not something we have to have after all. Wise up people.

I have a question for the group how does the write-down powers granted to the bankruptcy judges given by President today work. Can the judges simply write-down the principal for a person who bought more home than he/she could afford?

I've heard a lot this evening about people playing by the rules and therefore meriting mortgage assistance. I played by the rules for 30 years and paid off my mortgage. I was self employed. I have no 401K and the equity in my home was something I counted on to be able to support my retirement. I have watched the value of my property decrease from $700K in 2006 to $500K presently. No one is stepping forward to bail me out and in fact very little of this economic discussion ever addressed those of us who REALLY played by the rules adn paid off our note. I am not interested in my tax dollars being used for ANY form of mortgage assistance – period.

So let me get this right. I am bailing myself out but just funneling it through the government. Let’s cut out the middle man, lower my taxes and I'll bail myself out. We already gave the banks incentives with the tarp/bailout. NO MORE. MAKE THE BLEEDING STOP.

Yes I agree.

This is the program that John McCain wanted in the stimulus act and that's why he didn't vote for it....

The President makes it a second act and all the GOP is poo pooing it?

Are you kidding me?

The GOP has no clue on how to help the American people.

I am outraged by this new plan. My wife and I are struggling on the verge of bankruptcy and not because we live in fancy house or are facing foreclosure. We had numerous medical emergencies and deaths over the past two years. We have struggled to keep our home payments up to date so our children have as normal life as possible. This plan will end up helping people who lived beyond their means. What about my family who has lived within their means but do to tragedies is struggling?

It is totally wrong to bail out banks, mortgage companies, people who borrowed beyond their means. What about the people who are near retirement and really need the money, who will take care of them. These people are losing their money because of other people's greed.

Larry
I support the President's Foreclosure Plan. So many are quick to judge that it's just deadbeats who need a hand up not a hand out. Come on America, we are in deep trouble and families are hurting badly. Have some compassion and understanding. Your property value goes down as the foreclosure rate goes up.

Remember: when jobs are lost, the children suffer the most. During these tough times, the crime rate also grows. Don't you see the domino effect? When our great country suffers, every American is adversely impacted.

Have a heart!!

Are you kidding.???!!!!!.I have worked hard to secure my home and NOW I have to bail out those who haved lived above their means and the banks, automakers, etc. etc. I voted for Obama, but am sorry.

I am considered a middle class person, I do not want to bail anyone out when I can barely pay MY bills.

worked at the same job for 5 years could not get a loan for a home because I was paying for my kids. now I have to pay for someone who could not pay for a home to begin with. I have rented for my whole life, can the president get a loan for the people who have paid for the family and could use a hand not a hand out.

When the gorvernment gets involved, things go south. This government will get larger and more ineffecient. I wish Obama the best, but the answer is not to help people that continue to make poor decisions. Let's spend the money on educating everyday folks on what they are getting into when taking on a loan.

Hi Larry,

The Octo-mom's property is actually under a living trust, therefore the property is payed off. It's in her mother's name.

Hope you catch this before you tell the world they are 10 months in the red.

Mike

Have the bailed out homes also have an option of taking in orphans...

Have the bailed out homes have the option of taking in homeless...

Don't feel sorry for someone who took a chance on a rate.

I think we should all get 3% home loans from the government,and forget about the banks !!!!!!!

I am so tired of hearing about the people that were tricked into a mortage. What ever happened to good old common sense, if it sounds too go to be true , it is. You don't have to be a genius to know you can't afford a $200000.00 on minimum wage. I don't care what anyone tells you. People believed what they were told because they wanted to believe it. Now Obama tells me it is my job to bail them out. WHY??!!

I agree with Ben Stein. When are people going to realize home prices HAVE to fall by another 20 percent AT LEAST in most areas to fall back in line with REAL WAGES. Real wages have declined for decades while home prices have skyrocketed. It's a hard truth but we Americans have to learn it.

I agree with the plan. Until the housing problem is dealt with the economy will not turn around. This will do more good than the stimulus package.

Good evening! I happen to agree with the President. If you have contacted your mortgage company and they can assist you, if you have tried to get a loan modification and have been denied and if your payments are current then I think you should be able to have an option. If the loan is going to continue to rise due to an adjustable rate and your debt to income ratio doesn't match, then there should be some assistance somewhere. I appauld the president for trying to assist people in this grave situation.

i believe that things will change,but we must give it a chance to work, if people start pulling their money from the banks then i believe we as a nation could be in charge. let;s punish the banks, go to credit unions.

I SAY YES INDEED.PRESIDENT OBAMA IS CONFRONTING THIS WHOLE ECONOMIC CRISIS WITH REASON WHICH IS A 180 DEGREES TURN FROM THE YOU KNOW WHO FROM THAT PREVIOUS ADMINISTRATION.

15 trillion US economy is BIG > think big picture, if is receeds by 5% that is $750 billion if we want stability uncle sam has to spend FAST and then when things go well they can TAX and recoup > Confidence and Stability are key > Japan national debt it 3 times their GDP, ours is 65% of GDP > SPEND OBAMA SPEND ! he will help people !

Hi Larry,

I am upset with the federal mortgage buyout. My wife and I live in the silicon valley. We both work and earn close to $200K per year. With this income, we still cannot afford a house in the bay are as the houses run from $800K-$1MM and this means we would need around $150K-$200K for the 20% down payment.

We thought with this mortgage crisis houses in the bay area might come within our price range, however now with talks of placing an artificalprice floor this will prevent us from affording a house and yet we still get stuck with the bill.

Warm Regards,
~Eric

Larry,

The presidents plan is a great start to get the real estate market moving again. We are currently facing foreclosure on our 5 homes. We would like to keep at least one home if possible. I hope we can qualify for the new program!

Kevin

We saved for three years back in the 1980's to have a 20% down payment on our modest first home. Now certain first time home buyers are being offered an $8,000 tax credit. People who knowingly overextended themselves are now being bailed out with our tax money. Where is our break?

I agree with helping out people that fell into the traps of these greedy banks that were handing out overpriced home loans like candy. But my question is..what about the responsible individuals that have made mortgage payments ontime and have excellant credit but their mortgage balance is twice the price of what the house is worth? Is Obama planning on bailing them out as well?

I believe and have trust that this plan will work.
From what has been relayed to the public it is efficient
and will get us where we need to be. It will help, in time,
all of the people, families of America who are suffering
from all of this foreclosure. Our President is very well
educated and I believe that us as americans should
supprt him.

Absolutely I agree with the president. The banking system throught the deregulation laws passed in 1999 screwed us all. Credit default
swaps (legalized gambling).. Mortgage companies qualifying people who shouldn't have been qualified but hey everybody made money. The builders, mortgage companies and real estate throught their lobbying efforts. Nationalize the banks and regulate!

I think it is appalling that the president has spent this amount of money in this bailout. People should have lived within their means. Who is monitoring this money ? The same people who let AIG buy a state of the art airplane after they were bailed out. Shame on America! I hope someone is minding the store.

If the USA is going to bail out those thar lived beyond there means, then the USA[US] should have a lein on there property in the amount that their mortgage is reduced. then when the owners sell, all leins will be paid off first, if there is not enough cash to pay off the lein, it follows the property to the new owners. This becomes a loan ,NOT A GIFT.
Dave

NO ... Just as all the other bailout plans will not work; the forclosures are only going to get worse. The Banks spend millions of dollars sending these flyers out saying REFINANCE for 4.38% no cost; They have removed origination fees, and have now initiated DISCOUNT fees which have taken your closing costs from 5% to 8 to 10% -–

If the banks get government bailout money for each home they hold that is in forclosure. Then what will keep the banks from going after everyone they could legally forclose on?

Thanks,
Jay Fikes
Huntsville, AL

Yes. Even though I am not facing foreclosure currently, I have compassion for those who are sufferring. Atleast he is trying something. I have trust in the new President and his administration.

Larry,

Get real. In the early 90's the bottom fell out of the SoCal real estate market. My home's value plumetted from $120K to below $35K where I sold it before taking more of a loss. I ended up writing a check for $80K to the bank to walk away with my conscience in tact. Now my wife and I are living well within our means and have Absolutely no desire to subsidize folks with no sense of personal responsibility.

Steve in Upstate NY

Does anyone know who will be next on the unemployment line? It could be you! At least the banks will be able to work with homeowners so they will not be homeless. All the empty homes will effect your neighborhood from crime to home valves. Good for Obama.

Mr. King,

I've lived within my means. I planned for being unemployed. I did without many things...but I've enjoyed life too. Now I am being penalized for doing these things. Do the bailout. But these people should carry a higher tax rate than the rest of us the rest of their life. Equity gains? The government get a share. Their mistakes should not be mine.

I'm a bankruptcy attorney and federal bankruptcy trustee. It's common to hear stories of large companies filing bankruptcy. I'd like to see the panel discuss the fact that bankruptcy may be a viable option for those individuals in financial distress. If the bankruptcy judges are given the ability to adjust mortgages, this will be a huge step towards solving the foreclosure problem.

What is not being mentioned is that 90% of the real estate loans are sold on the secondary market/private investor. They no longer have any control over these loans. I was a Sr Real Estate Underwriter for both residendial and commercial and making a loan was a great deal more restrictive then in the past few years and there were far fewer foreclosures.

I'm a real estate broker in Florida, I agree with the president's plan, but the lenders gave money to buyers who under other market conditions could not get a loan. These loans should be re negociated down to the current value, and the banks should eat the difference, they made plenty of money on the front end of the loan to start. Do not use the bailout to help banks who made these loans...

Anwer to Joes question. At the present time there are homeowners that are keeping their homes for up to a year without paying their mortgage, to foreclosure you need a copy of the original note.
This is happenig in FLorida by the thousands

My husband has been on disability and I am currently recooperating from breast cancer surgery. We are paying our mortgage and our bills.
Why do we have to suffer the loss of value to our home, because other have been negligent? I don't think this home foreclosure plan will help homeowners, certainly not my husband and myself.
Elizabeth and Jose Diaz
Hialeah, FL

I could not disagree more and feel that those who created the mess are perpetuating a false claim that this is critical. Ben Stein was right, let the market drive prices where they should and then buyers will enter. And, this bail out favors those section of the country where huge profits were made by buying and flipping houses. What about markets like Rochester and Buffalo and other rust belt towns where home prices just stayed fairly stable. We haven't seen the huge declines as a result yet we are asked to ante up for the very bad behavior largely concentrated in CA, AZ, and FL.

You ask 3 people who MAEK THEIR LIVING how thry feel aboput the bailout? What do you think they are going to say? OF CORSE THEY AER FOR IT. We the people are NOT. Let 'em SINK

Do you think it is unfair for first time home buyers who purchased homes in 2008 and received the $7500 tax credit and must pay it back, but those buying in 2009 are receiving $8000 in a tax credit and do not have to pay it back?

I find it very unfair. I purchased a home in October 2008 when housing was just as bad as it is now and why should I have to pay it back when someone who bought a home in January 2009 does not?

Stop it, stop it, stop it. Let those of us who have struggled and saved wisely to buy a home do so. Help us. $8,000 tax break for new home buyers you have got to be kidding.

When asked what a homeowner should do if facing foreclosure, not one of your experts mentioned a "short sale". If a homeowner can prove real hardship and receives an offer equal to 90% of the CURRENT appraised value, the bank almost always accepts it rather than incurring the
$30-45k cost associated with foreclosing on a home. i am in South Florida and my wife is a real estate attorney doing nothing BUT short sales. it is a way for the homeowner and bank to shore up their losses, it stops foreclosures and it stabilizes prices in a neighborhood. maybe one of your "experts" should be my wife.

No one in my family purchased a house that did not have the financial means to support that home. Everyone worked and saved for that down payment. Now we are forced to have to bail out these people who lived beyond their means and knew upfront that they didn't have the money to support a home. It was keeping up with their friends and the Jones. I say, let them sink!!! Why do we always have to rescue people for their bad decisions. No one every rescues me when I make a bad decision nor would I expect anyone to bail me out!!! This bill sucks for the honest bill payment person.

We get the govenment we vote for. Same for us in Canada. You thought he was your saviour, now your are complaining...please people make up your minds. Live with it, not that you've had a whole lot of help from the media. Nothing but a steady stream of bad news across your ticker. Part of this is your fault CNN. Put something psotive up once in a while.

I lived within my means and saw my dream of owning a home passed me by when irresponsible buyers were fighting over homes, pushing prices out of my reach. Now that prices are coming down, Obama wants me to help those irresponsible buyers to keep prices up above my affordability level. It's just not fair. I supported Obama and still do, but I am angry, very angry.

Obama has already lost my support in less than a months time. I have been siting on the sidelines waiting for my chance to buy and here we go again. Government intervention leads to nothing but trouble down the line.

What about renters? Renters account for over 50% of the people? So were suppose to clean up after the excesses of this BS?

And its a bailout if there ever was one.

Yes, I agree with the President's proposed action but I don't want to
see the perpetrators of this fiasco ignored. In particular, I would
like to see more said about the Bush political appointee to head FEMA who, I understand, had zero experience in the field. As a "political
appointee", it would appear he was charged with creating more
loyalty to the Republican Party through home ownership for minorities
rather than exercising fiscal responsibility.

Can you present an example of someone who bought a home, say in California at prevailing prices under prevailing mortgage terms. What is the value today. What would this new program do to principal and interest and payment? What would be the fee to the bank?
How many such transactions actually fit into $75 billion?

Since ALL THINGS ARE POSSIBLE....if the bailouts in all the different areas don't work...Is it possible for the US to go bankrupt and how would that play out for us? Also, C.S. Lewis defined evil as knowing the difference between good and bad and still doing bad...can't we call these greedy bankers and politicians what they really are... EVIL!!!!

Yes! Completely agree with this plan. Though we might think that it might help some, in reality, it will help every one. If there are less foreclosures, it will stabilize the home prices.

I absolutely DON'T agree. Everything I buy is on sale so that I can try to get ahead and now my tax money is going to someone who wasn't responisible enough to pay attention to what they can afford???? I liked Obama but I'm really having a change of heart very quickly. If this continues the dems will all be thrown out come 2010.

why doesnt the gov ernment just give every american who makes less than 100,00 a year a 500,000 bailout and that would deffinately
put money back into the economy and it wouldnt cost as much as what they are spending.

Let the bottom drop out now so we can begin to heal. Who will police the bailout plan? Crooked people don't change!

Are there any stipulations regarding the mortgage bailout?
Do the recipients have to give up their $100+/mo cable tv and get the box for an antenna?
Do they have to quit their country club?
Do they have to take their children out of private school?
Do they have to sell their cars and buy a used "beater" to get rid of their monthly car payment?
Do they have to do anything to assume some responsibility for their situation?

I love Jeff Lewis!!

I own a home in CA and invested my 401K into my home to the tune of 200K and my interrest only loan is coming due next year. i make decent money and have 780 A Paper credit, but may loose my home to foreclosure because my equity is too low, and they wont recast of refi my home.
I also have a rental property that is in the same scenario. i may loose both, and my entire retirment.
I chose property as my retirement investment, and i will loose everything. i am Republican, and may turn to Democrat because of this decision if it helps. i may become a huge fan of Obama.

My thought my husband and I have been trying to work with our lender for over a year , we are current and in the highest unemployment rate in florida . my husband has been working away from us for over 2 years so we could be stay current.
Our daughter has autism and it is hard to be apart, I also work as a nurse. Maybe finally our lenders will consider refinance or loan modification. they are not fannie mae or freddie mac.

Thats my question we cant even get a person to speak to us at Saxon Mortgage service used to be morgan chase.

I truly would like to be family again.

myself and wife work hard to invest in the american system,we work hard and put all of our money into the real estate market,and we are mad with those greedy lenders who were lending out money also mad with the govt for not regulating the system,so we have to lose all of our hard working money. i agreed with obama to make those banks rewrite back all of those loans. i will never invest in this system no more not even stocks,nor anything. i lost all with a stinking greedy system

When will the government be stepping in to subsidize my rent?

Califonria is looking at laying off THOUSANDS of employees. All these people will end up losing their homes. Now is that irresponsible? I don't think so. The only reason I have not been laid off is because I have over 22 years working for the government.

I'm for helping some homeowners. However, if you took a variable rate to buy a house you couldn't afford or wanted to set on it a while and sell if for profit at the lower rate then you should lose and lose big. I lost my home when I lost my job and had to relocate from Michigan to Massachusetts. This was at the beginning of this decline in home values which hit Michigan first. I had a house I could afford but lost my income in a wasteland of a state with no employment prospects even back in 2005. Who's helping me with my losses? What, because I couldn't stay in the home being a deadbeat tenant waiting for the courts to kick me out I don't deserve anything? I didn't even get the measley $10.00 a week tax cut because I'm single. What happended to the $3500.00 for single people making less than $150K and $7000.00 for married people making less than 300K? Just another politician making worthless campaign promises to working people. Unless you're a deadbeat who bought too much home and are working the courts or don't work I guess you get nothing.

I have a nonprofit agency that – for free – helps homeowners negotiate with lenders to stay in their homes. The fact is that the majority of people who call us have not been irresponsible, they have been impacted by the economy. There IS help for homeowners. They don't just have to call their lender and hope for the best. We advocate on their behalf and are all across the country

I saw a clip today where I was suppose to feel sorry for someone who took out an interest only loan who is now crying that they need help in keeping their home...give me a break. If you can't afford a loan with principal in it, you should have never been approved.

We will in the end pay for greed – greed of the home owner and greed of the bank.

I also agree with the second Shawn. My husband and I have excellent credit – because we have worked hard to keep it that way. We saw the credit crisis coming months ago and paid off our credit cards.

How is it acceptable that responsible people are basically "punished" for being responsible? Where is our REWARD for doing the right thing and living within our means?

We have owned a number of homes in our marriage and have always paid on time. Even though the lenders said we could borrow so much more than we did, we always knew what we could afford.

I am angry!

I do not agree. Over the past few years, My wife and I shopped for homes, and I could not understand how people I knew bought $300,000+ homes, when they made less money then me and I did the math over and over. I didn't buy a home and I'm not worried about loosing a home, but I don't think the country should be bailing these people out. when you buy a home you need to expect prices to crash, or rates to go up if you have an ajustable mortgage. A lot of these people where careless just as the banks were careless to lend them the money... No Doc loans ect ect...

my husband and i are hard working middle class americans with 3 children in college. We own our home, pay our bills and invested our money in mutual funds to pay for our children's college educations. We did all the right things. Now, because of the greed and egos of corporate America and people who chose to live above their means, we have lost so much of the money in our children's mutual funds. What was once enough to fund each for 4 years is now short for each of them. So, we are so sick of hearing about bailouts for banks, automakers and homeowners that borrowed and bought over and above what they should have. My husband and i or my kids will now have to go into debt to fund the remaining college years. WHO BAILS US OUT!!!!

So because my wife and I are responsible and knew our financial limits and what we could and could not afford, no matter how much we wanted a certain house, we have to pay for the ignorance of the majority. And who looks out for us? All of those who made the decision to get into a mortgage above their means now are being represented by certain members of the legal system and having their boo hoo tales told by 60 minutes and only want to lay blame on the mortgage companies. I agree that the mortgage companies should take 50% of the blame, but when are we going to start holding consumers responsible for their own ignorant decisions.

No I don't think the gov't (Big Daddy) should use borrowed money to bail out those who couldn't afford their homes in the first place -AND -give the banks who got use in this mess MORE money.
The banks have been given lots of money and are holding on to it to help recoup losses and not tp lend it to those who want mortgages that can afford them.
What about all of the retiress whose IRA/401 Ks have been decimated due to Wall Street's greeed?

the package does not address the issue...it would be more cost effective to the economy for the govt to revamp fannie..give it the credit and help with the securitization ..even guarantee the loans if necessary..with no jumbo loans, no limited doc loans for the self employed who have good credit and almost no rational loans for second home buyers... we have removed so many good borrowers....limited the size of the market place and therefore cannot really help restore the market....create new loans that require agreement to a uniform foreclosure process.....ours is 150 yrs old and unique to each jurisdiction....the new system should be staffed by professionals....and should be capable of intiiallizing intervention by either borrower or lender....also it would be sense=sible to create a market place for defaulting loans and not force the lenders to try to take control of the property

Why should banks be incentivised for this when in forclosure, the bank ends up holding the house and loosing money anywhy.

Additionally, these most likely are the same bankers who are at least partially culpable in causing the problem to begin with.

The banks should be forced to restructure mortgages.

I do agree with the President's plan although it has been my experience the Banks and lenders will hold on to the money and use it for their purposes as long as they can. I in fact called my lender just yesterday as my wife and I are perilously close to going into foreclosure and we were told a flat no! They will not lower our payments. This is the same company we had to tell to change the occupations they had given us to get the loan. They made my wife a Doctor and me a of all things TV Producer.

P.S. You would need to call the person the loan was sold to and good luck getting thru to them.

They borrowed the money. They owe the money. They should pay the money or get out. What happened to integrity in this country? I paid my mortgage in Texas for 10 years on a house that was worth less than I paid and that was worth less than the mortgage for 5 of those years. Why are we rewarding bad decisions? If these were teenagers, they'd be in detention.

Kevin you took a risk buying those houses, like a stock with a lot to gain... Now you will lose a lot. That is the game you played and you knew. Don't play dumb.

As a twenty six year veteran in Mortgage Banking I want to see a portion of the bail out money to be used to go after the culprits – broker/lenders who put so many people in negative amortization loans. I have one elderly lady, 76 years old, who's income was inflated on the application to qualify. She lives on $2000.00/month and the application reads $4975.00 per month. This is a crime. She will lose her home when the loan adjusts. The FBI in San Jose Ca. is currently overwhelmed and under staffed. Use some of the money to expand their ability!

I live in Janesville Wi., G.M closed their plant and we we here in janesville had no idea that it was happening. So I'm glad that President Obama is trying to help us from losing our house. But I believe its not going to matter. G,M was the main employer.

banks that gave the loans to the people they should not have, should be forced ,or mandated by the goverment to renegotiate the loans and take the hit- or be investigated and fined for the fraud they comitted at the expense of the uneducated customers. No money then needs to come from the taxpayers.

We saved enough money for a down payment, we bought a house about 75% of what we can afford, we have automatic payments going to the bank, and we don’t get anything for being responsible citizens? We live in a country were not paying your taxes get you promoted to Secretary and not paying the house get you a government handout, wow!!! Great example for our kids!!

Yes. I agree with the plan. This problem has to be addressed and ultimately all people benefit when the housing crisis stabilizes and contributes to improvements in the economy. Some people say they don't want to bailout others who have been irresponsible, but it as the President has said -if your neighbors house is on fire because they were careless smoking, you still help put it out not just for them, but for protection of your own home and neighborhood. People are often too selfish , lack a community mindset and spirit of helping others. That is what the President is trying to foster as well.

Someone needs to tell that guest there is no such word as "incentivize." It took me forever to figure out what he was saying.

Please give some examples of how the program works using hypothetical people, hypothetical mortgage amounts and what the solution would be. Thank you.

I agree with your prior writer I played by the rules now my great great grandchildren have to pay for someone else being irresponsible
I played by the ruls my wife and I worked 2 & 3 jobs to pay off our mortages. butI know america needs homeownrs but Id rather teach them how to fish not give the lobster dinners
Michael

This is all bunk! These people in foreclosure have noe recourse. There simply is not enough money to undo what has led so many people into this devastation. If this happens for these credit problems, how can we not help everyone who lost jobs, homes, insurance, etc. because of the lending failures? It is a can of worms!

Larry – I hear a lot of people complaining about others being allowed "off the economic hook". Why can't we all realize that not only is the world economy so inter-connected and that boils all the way down to small town America. As such, we have to collectively stop looking back and sideways at what we have / have not and what others have. Instead, we Americans ALL need to be working towards finding solutions to move out of this mess. In effect, it's called the economic multiplier ripple and we all are impacted by foreclosures, increases and decreases in sales / prices. I am tired of hearing constant wrangling by so called experts and political parties. President Obama has hatched a plan and even before the plan is rolled out we can't wait to rip it apart. How nice it would be if we ALL made the effort to try and find solutions instead of constantly tearing apart potential remedies. We have to stop looking back, the $$ are gone. Let's try and move forward

No I think this plan is idiotic , those of us that lived within our means now have to subsidize those who did not!! Punishing the people who are responsible and rewarding those who are not. We have bankruptcy and foreclosure , this is what they are for to clean up messes like this!!
Obama will be a one term president!!

Our mortgage company has refused to help us or hear our cries and we've been with them for ten years. Our income was cut in half when my job forced me to take a reduction in pay and went part time. My husbands credit is poor and all bills are behind. the mortgage will be three months behind soon. American General is owned by AIG how can we get help? We manage to pay a thousand dollars every month but can not catch up.

Where were the 'watchdogs' in the federal government when this mess began?

What am I missing? You have to spend $75 Billion dollars to bail out 9 Million homeowners? Why not give the 9 million homeowners 1 million dollar each and save money? What were the costs of their homes that they need $75 Billion dollars?

I disagree with most people when they say that the problem is with greed etc and unethical lending or speculators. The speculations were not based on whether there be an ever increasing values of homes but the continuing ability of the homeowners to make good on their pormise and continue to make payments as required by their mortgage contracts. American people are not unscrupulous. They just did not have the wherewithal to make payments. Why? Because they lost their jobs. Why? Because the jobs were shifted to China, India, Brazil and Mexico. Every U.S. President who supported NAFTA, CAFTA, and WTO including Bill Clinton is to be blamed. This is not about regulation or lack thereof. This is about people not having the jobs. I say give people their jobs back – not billions and you'll see that American people will hod up their end of bargain. They will make payments. Of course, when they don't pay, the houses go nto foreclosures, market values of neighborhoods come down and banks fail and bailouts take place and then finally we have wrong medicine – 75 billion. If Obama gives jobs back we'll pay our taxes and mortgage.

I'm tired of hearing about the "irresponsibility" of the vulnerable who were lied to by establishments who appealed to the dreams of those who thought they might never own a home.

It's the abuser who understands that the vulnerable are those who are easiest to control or to take advantage of.

The lenders and government knew this and yet they are being chided more so as heroes, or not as responsible, as those who bought into their hopes and dreams and we've bailed them out.

And the vulnerable, as with the abuser, in America, is left holding the bag and the bulk of the consequences.

I'm tired of the abuses of the system of the vulnerable, getting away with their profits, walking away and feeling pious about it, much as an entitled Narcissitic Personality Disorder.

K

I agreed with the foreclosure plan because the economic is base in the differents aspect for repair a bad economic you have to fixed different decision for put in track and the house aspect is the base the bank support loans if the value continue going down is imposible to establish the loan market ,The president take decision for the country economic no for one person ,becouses if the president take decision in that way at the end the all country going down .when you do it macro economic you can no fixed using micro is a big mistake.

I am a foreclosure counselor with a non-profit HUD aproved agency in Mass. and I have been praying for something that will force Banks and in particular the servicing companies to work with us to negotiate resonable solutions for people at risk or default or facing foreclosure, this new deal needs to mandate the lenders and servicing companies to make reasonable agreements and part of my job is to be sure the borrowers can support the loans going forward.

no one ever comments on the people who have already lost homes credit worthiness ,by the time you are 2 to3 months behind your credit is already damaged to the point of bankruptcy, which causes another kind of problem not being able to purchase again for 2 to3 years will we get leiency or a bailout to purchase again before that time frame will bankruptcy be addressed,it all seems so unfair how many people have had to endure the heartache of bankruptcy and where is our help

I, along with 3400 of my co-workers, will be out of a job in less than one week because no one would "bail out" the hospitals that employ us.

It makes me so angry to see those that live above their means getting any kind of assistance.

I just want to know who is going to determine who is "irresponsible" and "unscrupulous."

Joyce

Yes, I agree. This plan will probably stop the downward spiral of housing prices. Nobody's home is safe in this economic environment. Everyone is just one serious illness or job loss away from foreclosure.

I disagree with with President Obama's Stimulas package helping main Street America. It should be called the Foreclosure Crisis Bailout helping those who have no right owning a home in which they can't afford. I'm sorry, but I have no sympathy for these homeowners or the mortgage companies that approved these loans. It all comes down to common sense......

The bailout is part of the cure. Another issue is the Servicers inability to work with clients. Folks that are 90 days delinquent must send in 100% of the payment to become current or the Servicer won't accept any money. There is no working with clients. There are programs offered by reputable non-profit organizations (i.e. RainyDay Foundation) that offer job loss insurance which covers up to 6 months PITI up to $2,500. Most Servicers will not accept mortgages with this enhancement because they don't know how to change. Big Servicers (Wells, Chase, Citi, CW, etc) must change with the times vs. taking Gov't handouts. Times have changed and so to is the need for Big Banks to step up.

It is not the responsibility of well run banks that made good loans to people who can't manage their finances. Banks are in the business to lose money. They are not Quasi-governmental agencies. If anyone needs to refinance the mortgage it should be Freddie Mac or Fannie Mae.

Cary Vorris

Obama's bail-out for mortgages... I think the great desire for the American Dream that has now turned into the American Nightmare.

Peter
Vancouver BC Canada

I have been a homeowner since 1977. In 2006 I lost my job and with it the salary that paid my mortgage and expenses. Unfortunately I was unable to replace my income at a level that allowed me to maintain my home. I tried for 2 years to sell my home, and have not been able to do that without losing the investment that I had in my home. I have used all my savings and reserves- I really have nothing left but a home that is underwater. Am I a bad person?
I continue to (by the skin of my teeth meet expenses) I feel very fortunate to have a job- I guess I am one of the lucky ones.

So under President Obama's proposal, if you may your loan payments on time after restructuring your loan, you are rewarded with a thousand bucks a year...for up to five years?

Seems the reward will be to remain in your home and have a lower payment with a lower rate.

Just another example of a gross government giveway. I pay my mortgage payment on time but I don't have my hand out looking for a $1,000 a year for making timely payments.

When did Obama pick up Bush's fear line?! I will be a fool if I am not in the next housing bubble.

No I do not think it will help. I just feel that the banks will give themselves bigger bonuses, and the people will still lose their homes. Just stop the banks from foreclosing on anymore homes. Accept what the people can afford.

In principle, I agree with the plan. However, this only indirectly help the guy who is playing by the rule and is not 'below the water' (by preventing more foreclosures). There should have been more done for these people in the form of raising the incentive amount for the first time buyers. What this would accomplish is to turn the market into less of a buyers market, there by increasing home values.

I wish that we should be trying anything to get this country back on the track of being the greatest country in the world. The more this subject is hashed in the media the worse it becomes. I grew up in the depression, everyone stuck together and helped each other out. Why can not this be the case in these times. Sure people have been living beyond their means, but they had a lot of help from TV advertising to get the best credit cards , the luxuries that they stated we were missing. So we must all pay the price and get on with a solution fo the whole mess

why is the banks geting bailout and the american people not ? the banks was not responsible and we are trying to make the americans how simply try to own a home bad guy shame on wall street and our goverment.

Why not use the bailout money to reward people who ARE paying their mortgages but are stuck with a higher interest rates, say 6.5%, and let us get a 2.5% rate instead, without having to pay all the refinancing fees. Then, instead of having a $1400.00 per month mortgage, have a $600.00 mortgage. Doing so would ensure that most of us would use that extra $800 per month in our pockets to pay down our credit card debt, further helping the banks and the economy, or perhaps buying new furniture, autos, or saving more money.

Think about it please!

Bob and Janet, Denver, CO

As a single parent for over 15 years I have worked extremely hard to raise my son and put him through 4 years of college, with absolutely no assistance from the government. He never qualified for a student loan because of my modest $60 k per year. According to President Obama "middle income" is upwards of $200 k. These are the people Obama wants to help with their mortgages. The only debt I have is my home – no credit card debt, no car note. If I want to refinance my home, what incentive does the bank have to give me a lower interest rate when they're getting a higher one now?

Not right to bail out morons who live beyond their means while those of us who have lived modestly are seeing our IRAs and 401(k)s going up in smoke. If evolution worked this way we would be evolving from people to apes; it's selection in the wrong way!

What happened to idea of the government/taxpayer participating in the appreciation your home when you sell it if you received government assistance with restructuring your loan? The individual gets to stay in their home and the rest of those who did not over mortgage ourselves and paid many thousands over the years to refinance our loans down do not feel like total dupes. If you reward only bad behavior, soon all you will have is bad behavior. Just throw us a bone requiring at least some repercussion so it does not look like a total give away.

When housing prices do turn around you will have all of these assisted individuals getting windfall profits leaving those who practiced good finance looking like fools again.

The problem is "values have gone down" Hah!? What about the crooks? The crooks that created the loans that the other crooks could take advantage of so the homebuilder crooks could build more homes than we ever needed that the crooks could ill afford. Throw the crooks in jail. Then we can sort the rest of this mess out.

Larry, I don't understand much about all this bail out that President Obama is trying to hand out to the people but I am worried about one thing. Will only our American Citizens get this money or will he be OKing it to illegal immigrants too? They don't deserve it nor should they be entitled to it at all. I believe they are adding to our problems of the economy today and I think only American citizens should get this help.

We are in this mess because of the Need for Greed!! I believe we need to be objective and use intellegencia and resources to understand and solve the problem.
A lender will NOT survive without the borrower and vice versa. We need to bring these two groups to do business again with the aid of the US govt.

Saleem.

I am in a adjustable rate. I am scared to death. My rate is scheduled to go up in june. I pay my morgage and I am glad that President Oboma made this happen. the only question i have is the way it sounded I wasn't going to be able to refianancem because of my situation. Is there going to be restrictions,

I think the best thing the President can do is to eliminate the tax that the seller is required to pay on the amount of mortgage waived by lenders in a short sale.
IRS imposes tax on the waived amount. The seller has to pay tax on the short as it is reported as income. So, it is a triple whamy – the seller has lost the home, lost all the principal inested in the home and on top of this is required to pay tax on the mortgage amount waived.

So, Mr. President please eliminate this wrongful tax.

Isn't this what got us here in the first place? It just looks like they are going to do the same thing by making loans available to those who cannot afford it.

Fannie Mae and Freddie Mac, one of the main culprits of the collapse, are going to profit from this!

I am looking to buy a house. Let them go under. Fake bottoms never hold.

This feels no different to me then us going to war in Iraq. We were "bailing out" the Iraqi people who were under the "horrible" control of Saddam Hussein. Then we "bailed out" the banking industry; next we "bailed out" the auto industry; now we are "bailing out" the homeowners who moved into homes that were beyond their means. It seems like we are trying to rescue too many situations with "federal"solutions that will NOT have the desired long term positive outcomes at the State, local, and individual level. This is out of control.

Donna M

So if you or your husband suddenly looses your job... and unable to find one immediately... what would you do with your home loan?

Sell your Home???

Larry,

It's a very sad day in our country. Obama is trying to do his best but why it has taken this country so long to relalize and act on these financial problems. When we watched many of our friends buying million dollars home, we wondered how could the people with lower income than mine afford these homes? It was abvious to us 3 years ago that afordability question will come up soon and we will be going through this disaster. Why our govt and banks were sleepng at the wheel? Why people were so irresponsible and greedy? We have ruined the American dream for my kids who will be looking for their first job after graduation next year. We should have Taliban style accountability Jirga to punish these culprits.

I feel sad and mad for our country. God bless America.

Larry,
I am an entrepreneur – self made very comfortable individual.
The way that I got here is not buy inheriting a silver spoon in my mouth nor a government gift of any kind. I came from a poor rural background and scratched my way to where I am today. Step by step, hour by hour. It was not a miracle – just long hours and hard work.
Plus, I have always been frugal in my living standards – saving along the way. Our family believes in taking care of our own. And I have had the opportunity to reach out and help others along the way not by throwing them a fish but teaching them how to fish and be frugal.
What happened to living within your means or below. This bailout is an award for bad behaviour. There is no redeeming value in it.
Shame on our government officials who we elect to be stewards of our goverment.
Emily Coleman

Dear Larry,
I recently saw an ad a couple months ago in USA Today by a gentleman who suggested the idea that the government institute a mandate that banks convert all mortgage lending rates to 1% immediately. If the current lending rate the government offers to banks to borrow money is at 0% what is wrong with this idea? It seems to be a much better and cheaper way for this bailout to assist the home mortgage crisis and put real money into people's pockets by lowering their monthly payment.

Sincerely,
Brad Allshouse
Dallas, TX

Helping with foreclosures is a great thing. The problem for people like myself is credit ratings. My credit score has dropped like a stone. In June of last year it was 750 and now with struggling to make payments on time it has dropped to 560. My credit card companies have dropped my credits limit so now my available credit is low which lowers your credit rating. Payments have been late which also lower credit rating. It takes nothing to drop a credit rating and is impossible to increase a credit rating. Last year I would have qualified for the low interest rates now I don't qualify for the interest and my bank can't loan me money because of my credit score. Shouldn't we get credit scores straightened out first.

I am angry too! My husband and I raised our sons in an 896 sq ft home so that we could save for their college educations which I am proud to say they now have. Along the way I would like to have lived in a new, large house but we chose to stay out of debt and pay all our bills. Now I almost wish we would have gotten all the things we wanted including a new home. People got homes that KNEW they couldn't afford! How unfair! And because of their financial situations their children will not have to worry about paying for college – because we'll probably be paying for that too!!!!

I think the great desire for the American Dream that has now turned into the American Nightmare.

Peter
Vancouver BC Canada

NO>NO because they are not touching the root of the housing problem which is the mega over pricing of the homes that are being built by contractors and sold by realitors. if it was any other product the gov. would have a cap on the buyers cost. this is critical and the gov. is doing nothing but promoting it in this money give away.

Is incentivize a word? My spell-check is underlining the word in red.

I support the plan. People don't understand that the President had to do something. People can be so shelfish. This plan will help many people to help stabilize the economy. If someone is against this they are either shelfish or just don't really understand what has happened over the past 8 years in the previous adminstration getting us into this mess.

How many generations of Americans is it going to take to try and pay back this ever mounting debt this country is incuring? This is already beyond ridiculous.... this generation of Americans is pathetic! 40 years ago people would have been protesting on the streets in the millions what is going on these days! This country has already gone beyond the breaking point with debt! The country is going to be bankrupt and the dollar will be worth less then the paper it is printed on! There is no way out of this either considering America doesn't make anything anymore, thank Walmart and everyone you know who drives imports for that.

I don't understand if the prime rate today is ZERO percent, why there are people in the United States with mortgage rates at ten percent and above?
Why not cap the mortgage rates at 5%? The mortgage companies will still make 5%. Then there would be NO bailout necessary!
The culprit here still appears to me to be the lending institutions!

Jeff is right no one takes responsibility any longer.

Thanks for being a stand up guy Jeff!

I love my neighbors who are having difficulty making payments and hope the best for them; however, they purchased a home they could not afford with lots of upgrades. I purchased a much smaller house with few upgrades because I knew I couldn't afford the home they purchased. Now, I'll be paying more for my house which is smaller with less upgrades because I make my payments. I love my neighbors but do not think it is fair for me to pay. The banks need to take the losses just like they sucked up the gains- end of story!

So, for peoplelike me (who had been responsible with my finance–only purchase a house that I can afford), we are being punished and have to help bail out those who were irresponsible. What is Obama going to do for the fiscally responsible people.

I am so tired of people blaming the victims. Like myself, I hired a broker to do a job, and instead he was deceitful, and mislead me. Now he moved to another counrty after scamming many others. As far as the banks go it was all about greed just like during the Great Depression, so this is not the first time banks have done this to homeowners.

I agree, but will it help people who are layed off, I pay on time but I just was layed off no fault of my own. I plan on paying on time and keeping my home but would be nice to have a lower payment till I find a new job.

I don't agree!

There is no way possible that you can use debt to solve a problem. The real issue is that people have bought rediculously expensive homes with interest only loans not thinking about the fact that the interest only part requirement is only 5 or 10 years. Now we are at least 5 years into those loans and these people are having to make real payments and they can't afford them. If you look back before the "recession"began forclosures were already occurring. The irrational and irresponsible decision making of consumers in this situation have created this mess. Obama says that his plan will not help the "unscrupulous or irresponsible", if this is the case they should be looking at those that don't have the subprime loans.

It is time that individuals take responsibility for our own actions. The politicians are using this "crisis" as an opportunity to create more governement agencies and departments.

I don't know why we can't trust our free market system to correct itself as it has for over 200 years now. If we artificially prop this situation up with debt we will have a real mess on our hands for decades to come.

home values must be true and fair and not through appraisals performed by appraisers controlled by the lenders or others invested in an overinflated property value without these changes in the way business was done..nothing good will come from new refinancing programs....

While I dont mind offering a goverment sponsored refi to those "underwater"...I do mind the government asking me to subsidise irresponsible borrowers.
If the government is goverment is giving away homes>>>where"s mine?
I would be willing to buy an investment home,( and pay my mortgage!!),if the goverment offered an incentive. How about offering an incentive to someone who has good credit and pays their bills!!!
Freddy from NJ

I don't think a refinancing should be an option as it will not solve an issue of "over" borrowing beyond peoples needs in a long term. I'm feeling treated unfairly, almost discriminated against, for my fiscally responsible behavior. Where is my reward?

My taxes are continuously being used to feed the blooming socialism....

Thanks.

I am in Fl and have owned a mtge co for the last 10 years and I want all your listeners to know what your guests are saying is absolutely true! We have customers who try to contact the banks who have to "volunteer" to participate in the "help" program and most dont want to participate or tell borrowers they have to be behind in order to get help!!! I feel like nothng specific is being done and the gov't is throwing money out there again! Tell me how I am going to be able to help!!

My husband and I have been saving for 4 years for a downpayment for our first house. Now, with this program, prices are going to be artificially inflated and not only we will not be able to afford a home, we will be paying to help those irresponsible people who purchased something they couldn't afford. By the way, my retirement fund and stock accounts are down 50%. Ms. Spier alluded to the bailout of Bear Stearns, etc. as her reasoning for helping "main street". These actions have not in any way made the value of my portfolios increase.

My wife and I need to understand what the criteria will be for receiving help from this plan. If we have been playing by the rules , doing without to pay our house payment, not going out and buying new vehicles…will we be eligible for the lower interest rate or will we be turned away because we are not in foreclosure.

I think President Obama did the best thing so far to improve the financial collapse that GWB and his republican idiots created over the past eight years. For all you people that cry about a bail out for the people that over extended themselves..........mmmm.. the airlines, GM, Chrysler, the banks, Donald trump should I continue. The housing market is what needs to be restored like yesterday. Get it through your think dumb head...

I am not an economist by profession, but it is evident to me thqat we are headed for very serious trouble in our city and state services. I pay over $6,000 in taxes on my $500,000 condo in West Hollywood, CA. If the banks are now owning so many properties here are the banks paying the taxes...and with devaluations, shouldn't all of us pay less real estate taxes...which will result in thousands of layoffs in the service sectors of our government agencies?

Larry,

Why not let the foreclosures happen and property prices fall. Then put the funding, incentives and programs in place for people to buy homes. That way values settle where they should and programs ensure that inventory gets moving instead of artificially propping values up.

Bryan Welsh, CT

We purchased our house at the height of the "frenzy" four years ago. We paid way too much money for a house we didn't even like. Now due to the economy and a massive layoff, my husband lost his job over nine months ago and the bank won't deal with us because we aren't late and have continued to make our payments and we can't refinance because we don't have any income. We have given up all of our savings and more, it is not fair to say that everyone in this situation is at fault! I resent that opinion!

I don't see how the banks/lenders can afford this. Won't that just put the banks in further crisis? People who are completely against this just aren't able to see that many people got into this nightmare with no fault of their own – it's just the hard times of loosing jobs, the housing bubble bust, and the many other things that put our country into the finicial crisis.

I am against this bailout. How will the vast majority of responsible homeowners get any benefit from this? We bought a house we can afford and our tax dollars will not benefit our mortagage but that of others that bought more than they could afford. I would like to know the percentage of homeowners in trouble on their mortgage that are unemployed. My guess is under 15% due to national unemployment being under 10%. So most people are in trouble probably due to buying too much home for their income. Sorry but these folks need to learn the true American Dream of living on what you make and saving some extra for slow times like we are in now. Not buy what you want and wait for the gov to rescue you!

What is a better plan that can get something going now???fortunately it sounds as if Marie has been able to save all the situations, ie: the farmers, etc. evidently she has money.
Shawn has two jobs, some people don't have any. Something had to be done, right or wrong it is better to start somewhere.

Carol

This seems like it should be easier then what is made of it.

For those who have had their interest rates raised to the point they can not afford them, offer low interest rates -say %4.5. Apply that even for those who are "underwater"

For those that used their homes as a piggy bank for new cars and vacations, and can not afford their homes even at %4.5 we should do nothing.

We cant save everyone (and shouldnt). For those "underwater" , those people have 2 options. Keep paying in hopes that the home will appreciate over time or face foreclosure. The banks that made the loan should have to endure the loss.

Whatever we do, we should not ask to have the principal on the loan reduced. You should not mess with mother nature or the nature of the capitalist society.
I hate hearing how this is going to help those of us that pay our mortgages as much as I hate hearing the former President stating we needed illegal immigrants "because Americans dont want to do the job.'

What have we become? Why are we trying to save everyone?

The whole blame falls on the government for forcing banks to lend money to people who did not qualify for the loans.

Does the bailout help renters who are about to be evicted for lack of paying rent for the past 10 months? My husband and I are waiting until spring to evict two renters who cannot pay their rent. We just cannot bring ourselves to put someone out in the cold.

I will tell you how disappointing this situation is. We started a business 6 years ago – a profitable business. Started from nothing and grew it into a specialty pharmaceutial business. We were so careful with our personal finances – living within our means and financing the business from within. We offer 100% health care and retirement benefits for our employees and here it is almost 7 years later and we run the risk of losing it all due the the stupidity of the average homeowner. Credit markets that we depend on are closing quickly. When is the American Government responsible for maintaing the common sense of the American Public – isn't personal resonsibility one of the foundations of our society? This is insanity.

How does the mortgage insurance guarantee play out on people who are not current in their mortgage payments or on their way to forclosure?

I believe this plan might help, but new firm policies need to be in place.
California real estate needs to a big revision, it costs so much for nothing and that's why the whole economy is in a mess.

The same home in another state costs a fraction of the cost of that California property, if no regulations come in place with real estate pricing in CA, we shall see the same thing happening down the road in the future.

why did it take 10 pens to sign the bill?

I do agree with the President's plan. The bottom line is that if we do not assist those losing their homes, in the end we will all lose in the value of our homes.

As a Realtor specializing in bank-owned homes in Michigan, too often have I seen entire neighborhoods abandoned because of oversupply of foreclosures in one particular neighborhood, therefore practically "enslaving" those who could afford their homes in a neighborhood of blight.

We are in this thing together, whether we like it or not!!!

Listen up everyone! This is NOT a stimulus. I don't agree with it at any rate, I've paid MY bills. I don't want to pay anyone else's.

Housing is the cause of this mess! Maybe we can get every congressman who will take their $4,000 pay raise this year to give it up and help struggling homeowners!

It is still a sad day that Americans and people in general have not figured out the key to life. We are all connected and only as strong as our weakest link. People still do not realize that they have been helped either by opportunities from their parents or friends. What person is succeeding without the help of someone? it is amazing that as humans grow older they start to think that they know something when in reality they have become cold hearted. They still do not understand the world or life because of the walls that confine their minds and hearts. One persons circumstances or good fortune is simply that, good fortune. Their are many people working hard and not succeeding just as their are many not working hard and succeeding. How can a human presume to know what is best for the rest of us life is about people not your possessions.

Larry,
Doing something is better than doing nothing. Do we just sit here and let the economy choke to death or do we stimulate the economy? Give me a break!

I have tried to make a deal with banks. I have told them I don't want anything for free as I took this risk myself, but, they won't even do anything that makes sense, like let me have 24 months to pay half and put half on the back end. I have never been late and don't want anything from them except some time to get thru these times. I would be happy to provide some examples of how insane it is for the banks not to help out without giving properties back to them.
Kevin ODonnell

Federal reserve lend money at 0 to 0.25% to big banks now why mortgage rate is at 5 to 6%? Take lenders out of the scene and let people interact with banks directly for their mortgage adjustments.

I support the plan. Larry King is just only about controversy and headlines. People need help that a fact.

I don't understand why our country as a whole must pay for the greed of the lenders who enabled the Buyers to purchasedbeyond their means. A correction in the market is a natural course of events in order to move forward and create a potential for future growth.

Larry, all these bailouts have targeted people who made poor decisions. Stimulated the responsible and frugal! I have money and a 755 credit score. I am waiting to be stimulated.

I like President Obama and I think his $75B plan will help. However, I would prefer the government, instead, just start hiring people to build infrastructure (or even start a govenment owned bank, solar panel production company, or other businesses). Employed people most likely will not be having their homes foreclosed.

The Obama plan probably will involve 18 layers of administrative cost and will not result in much of any useful tangible end product.

I so disagree with these people that don't think the people that have lost their houses should get help. I work in a bank and have watched countless number of people loose their homes due to unemployment. My family runs a small buisness and up until the fuel prices went sky high we kept 5 failies with full time work and jobs now we look to possibley lose our selves in this economic melt down. What about the people that didn't live above their means and may lose their homes?

We absolutely, emphatically agree with the second Shawn. We are two teachers who live in a modest cape cod and have raised four children through grad school. We kept it simple. Why should we pay for everyone else who live in McMansions and eat out every week? They knew they couldn't afford it! They signed on anyway.......

Would you be kind enough to tell me what the word the gentleman kept using – sounding like – incinavate?!? He used it over and over again and I still cannot find an explanation!

Thanks,
Sandra

I totally agree with this bailout. After the bailout of big corporate industries, the middle class needs a bailout as well. Anyone who doesn't believe those who work hard and give 110% deserve this help are hypocrits.

two questions for the guests:

1) why can't we isolate the bad loans/short sales/foreclosures from the rest of the real estate inventory so as not to falsely lower the equity of the homes of people who are paying their loans.

example: I am in a house that I paid $750K for and the same model down the street is being sold by the bank for $440K. I am trying to refinance to lower my rate and am able at this time to pay my mortgage but I am forced to face the fact that I am in competition with bad real estate that is bringing my equity down! I can barely appraise at 80/20 because of this!

2nd question: Why didn't the previous administration see the trends in real estate to see that this was going to happen? I blame all the representatives of government that were ASLEEP AT THE WHEEL!

Lastly, instead of bailing out GM and Chrysler, we should immediately help the homeowners/taxpayers of the US FIRST because if we can't afford a house we certainly can't afford to buy a car!

Thank you!

Our new country motto is:
Failure will be rewarded. What is the incentive now to change if we know we will be rewarded for our failures?

I think we should be working on creating a balance between supply and demand . President Obama is addressing the supply side by preventing more housing stock coming into the market. This is only a part of the problem. I think we need to create a demand by allowing new buyers into the market. The way we do this is to get Fannie Mae and Freddie Mac to reduce to qualifications to buyers.

Once we are in balance, then we can control the market again.

This will also stabilize the values.

i don't understand why the people that got us in this mess banks,.wallstreet, government are now in charge of getting us out of this. and another thing after 9-11 it was terrorist experts now it's economic experts where were they before the fact

The bankers are responsible because if you have 100% financing. There is no incentive to pay. We need to go back to when you had to put 20% down and save to get a home. Its not brain surgery.

THE ONLY WAY THAT I WILL AGREE WITH THIS PLAN IS IF LANDLORDS WHO ARE IN FORECLOSURE AND STICK THEIR TENANTS ARE PUNISHED. THIS HAPPENED TO US AND WE ARE TRYING TO FIGHT THE WAY LANDLORDS DO BUSINESS. WE HAVE CONTACTED STATE REPS AND HAVE GOTTEN PEOPLE TO SIGN PETITIONS. OUR LANDLORD OF FIVE YEARS WENT INTO FORECLOSURE AND WE OFFERED TO BUY THE HOUSE AND SHE REFUSED. SHE EVICTED US AND NOW SHE IS IN FORECLOSURE AGAIN ON ALL THREE PROPERTIES. PEOPLE LIKE HER SHOULD NOT BENEFIT FROM ANY BAIL OUT. SHE SHOULD BE SCOLDED FOR HER IRRESPONSIBILITIES . WE LIVE IN WILLOWICK OHIO AND WE ARE TRYING TO GET A PLAN THAT PROTECTS TENANTS. GOD HELP US

We really should consider real estate raffles to help homeowners in trouble.

House raffles provide a win solution for everyone involved.

I can not believe we are not even considering this as a solution. It would really work if done at a large scale.

I did the right thing a year ago. I didn't take all the money that was offered to me when I purchased my first home. Now I am bailing out the same guy (ie: mortgage company) that I pay my money to each month. Take my bailout money and apply it to my mortgage. I could use those fund to buy things to stimulate the economy. Now more of my tax dollars will bailout those that did the wrong thing. I am willing to help but I need help too. My IRA is half what it was. I need to replenish my nest egg because it went toward my home down payment. I hope I won't lose my job or home. But I don't know. I need to know that if something happens to me, I will/can get help too. I need money to put away in case I need to save myself because I don't think I can be guaranteed that I can get help if I need it in the next few years.

my question is why can the goverment not give stimulus money to people who made bad decions and lived above their means when the goverment has lived above their means and is in trillions of debt

let the prices fall and the demand will increase. The market will take back what it needs no matter what floor you try to put under it. Future generations will be paying for the people who made bad choices out of greed, Pure and simplle

I don't know one person who has faith in what the government is doing, or who agrees with the bail-out. How can it be that so many U.S. citizens are opposed to what is going on – yet we seem to have no say in it! No one has asked us. And none of us voted for this. If we knew this was the plan, we certainly wouldn't have voted for Obama!

I agree with the Home Foreclosure Plan because, one way or the other, the government is going to end up helping people who lose their homes. It can either be via this plan or via the traditional methods where people apply for housing help. Those, especially Republicans, who are not in agreement with President Obama are simply selfish and don't want to see their money used to help other people. But what would they do if they were the ones in the position of millions of Americans who are on the verge of living in their cars- if they can afford to keep them? Homelessness is never a good thing whether you look at it from an aesthetic or humanitarian point of view. Maybe it would help those who are uneasy to think about the way the plan will inadvertently benefit themselves. eg. rising home values, improved neighbourhoods, crime rates, not rising, etc.

I agree the presidents plan is a good step, but he needs to take bold regulatory action. It doesn't make any difference who is at fault anymore or how we got here. We are here and we need to take action! The foreclosure crisis is a national disgrace! Lender's may say they want to help, but actions speak louder than words – they don't! Regulation is the only way they will cooperate. Stabilize the housing markets and the broader economy will follow!

I am so tired of being the MIDDLE MAN (WOMAN) and supporting everyone else's bad over spending habits. It is the same thing when it came to sending our kids to college. We and they had to pay with loans that will take them 20 years to pay off because they were the children of two married honest employed parents while those children of singles had their way paid all the way. I HAVE HAD IT!

Why not offer a very low interest rate to those of us who have been paying our mortgages on time for years so that we are able to re-fiance and we will spend the extra on the things that we now deserve after working all of these years!!! That would get the economy moving.

At 71 years old I lost half my income recently by losing a client how will the stimulus or this housing bill help us? we have a high interest on a second mtge with Citi plus huge credit card bills, we need help as all we have now is social security as income. Is there help for us? we need our foundation repaired as well.

I know something has to be done. But for those of us who have played it right - I'm 49 and have lived debt free since I was 23, pay all my bills on time, paid off a mortgage on a home that was well within my means . . . and some would say, well you are lucky. No - for twenty years I passed up buying things I wanted but couldn't afford, didn't go on the fancy vacations my friends took, am on only the 3rd car I've ever owned (this one is a youngster at 10 years old) . . . my reward, I get to also foot the bill for everyone else's excess. When doed doing the right thing get rewarded?

Please define "unscrupulous and irresponsible" and who makes the decision on the definition. I am a mortgage specialist and for the last 2 years it has been nearly impossible to book a loan and hence my income has fallen 66% causing me myself to fall into foreclosure. I was making well over 100k a year. My debt to income was fine with a full documentation loan. But what is one to do when they were making 15,000 a month and now can't find a job to pay them 3,000 a month. Please tell me which one is it "unscrupulous or irresponsible. I think it is a little too late and the fact remains that there have been a large amount of individuals who have already been displaced from their homes. Secondly, was Washington blind? Didn't they realize that this was going to happen when all the mortgage companies were going belly up and or closing their doors. IndyMac, Ameriquest, Homecomings, etc\. etc. Some of these companies closed their doors nearly three years ago. I can go on and on so I'll just cut it short.

a start.

larry,
Barbara is absolutely right.I am a victim of this crisis with 2 local banks here in Charlotte NC. I have had 853 credit score and with perfect payments on 2 notes with 2 different banks but because of them i am in serious trouble with the credit bureau and with my existing credit cards. i can be reached at 704-554-1642 if you would like to halp me or to hear my true story.
thanks,
ashok

Your tax money killed thousands of Iraqis. Do you take ownership of those dollars spent the same way you do toward the spending of tax dollars towards helping Americans who are on the brink.

They have a plan to help people , but what about the Veterans ? Interest rates are higer for the Veterans than others . Why can't they give the Veterans a break ? The Veterans have done more for the United States than anyone else . But they are always having to fight our government for their benefits .

THe feds should give everyone the option to join a plan in which your mortgage payment is cut in half if you live in the home. You would pay a 3 percent interest rate payments beginning 5 yrs from now. ie each month you pay half mortgage feds pay the other half, this is like a student loan in that it must be repaid, not dischageable in bankruptcy.. This gives everyone imediate spendable income, much more than $13 a payday!!!

What about those of us who chose not to buy a house? There was not enough money in the economy to sustain those prices when the market was peaking. It angers me that this plan rewards failure as did the bank bailout plan, which is even more maddening. People got caught up in the buying frenzy. If a person borrows more than he or she can afford to pay back, then you lose the house. Tough luck. Let the foreclosures play themselves out, then folks like me will be able to buy a house at a reasonable and affordable price.
Whether we like it or not, part of this stimulus package is a bailout. There is a risk involved whenever one purchases real estate. Caveat emptor. As a high school economics teacher, I understand this plan violates most economic rules. Oh, yeah, I feel real sorry for the guest who made money by flipping houses. Is he going to give any money back?

I disagree, When I purchased my house the lender approved me for a lot more money than I could afford based off my credit score and payment history. My own common sense told me to be conservative and not to over extended myself in fear of something bad happening.

What about the INVESTMENT property owners that have exiting loans; pay their bills on time; we are now renting to those multi-family combos needing a place to live after they have lost their homes.

Fannie & Freddie now say that I cannot refinance into a lower interest rates because I have more than 4 MORTGAGES.

What options are out their for people that have invested their money in real estate.

I'm a single mother working 2 jobs and I make nearly $104,000 a year. I'm pay about 20% tax brackets and I'm not a home owner.
Do you think it's fair that this plan will help the home owners on foreclosure to pay off their mortgages with my taxes, in which I'm not a home owner myself ?

Jeff Lewis – not all of us bought a car, took a vacation or used home equity loans. Some of us have paid our bills and stayed within our means.

Please add my voice to those who are profoundly angry over all these bailouts. I watched for years as people around us bought huge houses I questioned whether they could afford (now I know they couldn't) but were also spending on luxury items. I wondered what I was doing wrong - why I couldn't afford those things. Well, now it turns out to be a good thing that I saved my money for retirement and a rainy day - it sure comes in handy for paying my taxes. You bet I'm angry.

And by the way, your guest Jeff is WRONG WRONG WRONG about us all taking equity loans to buy cars and take vacations. NO, Jeff, WE ARE NOT ALL GUILTY

Who will the stimulus plan help? Doesn't it only help the Mae's and Mac's and not other lenders?

We Americans have bailed each other out since the beginings of this y oung country. I am just disappointed that the banks are not mandated to help borrowers....especially the ones who need it. It's unamerican,

Kevin 5 homes in foreclosure?

hI,
I was laid off from my job in December 2008, until then we was on time with our mortgage payments, but now we a little behind, so, we does that put us in this game plan, lost my job because of the down turn in the economy, cant pay my mortgage on $497 per fortnight, helpppppppppppppppppp

GREAT SHOW

Keith &jan

Jeff makes a lot of sense, maybe Obama should have asked him for advice.

President Obama and economist should have taken note from Bill Mair. "Wages have been stagnent for 30 yrs., forcing people to live on credit & home equity". I don't see morgages being the crisis. Keeping up with the cost of affording a home is the crisis. With school & county taxes we can't even afford the up keep of a home. Just a drive thru 20-30 yr old tracks & in the country.

what about landlords who is subsiding their rent to help other people find a home to live in,also pay local property taxes so that local govt can make improvement to these neighbourhoods,my god landlords should be rewarded for those effort.

Larry – hi, not true what 2 of your guests just said - I have not been late on my payments and Wells Fargo took my calls to refinance and today I finally sent the closing papers off to them. It took since Dec 5th of calling almost daily to follow-through on the loan, but it finally is happening. I think they (and all the banks) are just completely overwhelmed and are running around terribly disorganized in trying to deal with the demand that is out there. And, I don't think their top people have any idea because they aren't in the trenches. Several times I had to have my home phone in one ear with one department and my cell in the other ear with another department, just to get them to speak to each other. Incredible. linda

Almost everyones home price lost value, there are at least 80 % of the people that have mortgages that are worth more than the home value some even $200,000 so what do we do for all these home not to be return to the bank ? Number 1 problem these people will get their credit ruined and these people will not spend any money for the economy to roll, from credit cards, that is 1 of the problems. What I think is a good idea to keep these home owners in their homes is to lower their mortgage for at least 4 or 5 years or until these home prices get back at least the same as the mortgage, these payments are mostly interest so the bank wins either way, so the banks can lower their payments for at what the rent will cost for the same home, this way the government can also pay a portion of these loans if they want to help. Otherwise many people will give these homes back to the bank and what will they do sell them for $200,000 less than they are worth. Please comment, thanks.

I wonder :
1. how many people even listened to the president's speech? It was well thought out and would answer many people's questions(including your panelist Barbara)
2,. Anger is stirred up by the conservative media who also did not listen (nor do they ever) to the president's speech.
3. the country is in a CRISIS. Mr. Obama inherited this mess. The "do nothing" approach was tried until Jan. 20. Give the man a break and stop badmouthing everything and begin to see that progress is being made.

I am 51 and single, have lived in my home for 12 year, and invested in many improvements over the years, and am not "under water" with my mortgage. I recently became unemployed and am facing the possibility of not being able to meet my mortgage payment for the 1st time ever due to unemployment. I know I am not alone in this scenario, but I cannot see how lowering the debt to income ratio helps those of us who through not fault of our own became unemployed by lay-offs helps us. Please explain.

I am a 40 yr old attorney and have dedicated my professional career to public service as a prosecutor and reservist in the armed forces of the United States. I work long hours and weeks between both jobs – have zero debt and own my apartment in one of the largest cities in the United States. I purchased my 550 sq ft apartment ten years ago based on my salary at the time despite my broker telling me I could afford more and to adjust my deductions. I refinanced my apt approximately 5 yrs ago and switched from a 30 yr to 15 yr mortgage – I pay the same monthly amount and felt it was the responsible thing to do. The past year I have seen my other investments cut in half and am thoroughly disgusted by the thought that I will have to fund others who in my opinion were irresponsible and living above their means. I dislike the fact our legislators tell us to go along with it because if we don't it will only get worse for the responsbile indiviudals in this county. Very frustrating.

i'm glad obama is trying to do something but to me the only fix to all this is to stop with income tax...property tax...gift tax...inheritance tax...and all teh other bogus taxes...no wonder we dont have any money to spend the government keeps taking it from us...to me its stealing

NEED A JOB?

Work for the US government:

Become a bail out broker!

BAILOUT BROKERS AND ADJUSTERS NEEDED –

NO EXPERIENCE NEEDED!

This is in response to Ben Stein's (and many conservatives) view of this homeowner bailout: Helping these homeowners and stabilizing the housing market eventually pays dividends for eveyone. These foreclosures are like little bombs that take down not just the value of homes (most Americans greatest asset) but also takes with it the larger economy–as is currently evident. Please get Republicans (and Ben Stein) on the program: stabilizing housing is good for the economy. Playing the wait and let "the market corrrect the problem" idealogy of the right, not good for the economy. If that's what they truly believe, then they should have stopped all of of these industries from being rescued–don't just bring this mantra when homowners are being helped.

I own a mortgage company in Green Bay, WI. and I deal with mortgages on a daily basis. First of all, the bail-out package is for people with mortgages that they're behind on and facing foreclosure. One of the problems with the plan is the debt to income ratios. (gross money earned divided into all bills payable on a monthly basis) How the plan works is the debt to income ratio cannot exceed 35%. I don't know of anyone that has a debt to income ratio that low, that can't make their bills. The people that need the help are the one's that have a debt to income ratio over 60%. These are the people in trouble.

The banks will negotiate with the one's that can't make the payments, give them a lower rate and who ends up paying for it?? The people that make there bills! The banks need to make money. So if they're giving lower rates to the people in trouble, the people that are working 2 jobs to keep afloat will have higher rates. The rates should be well below 4% and we're not seeing it because of all the losses. BAD IDEA! Let the foreclosures happen so the market can get back on track! This plan will prolong the crash of the housing industry for many years!

Finally somebody talks about personal responsibility. Amen. This country has a personal responsibility crisis, not an economic crisis. Nobody forced anybody to sign the dotted line and nobody was complaining when the prices of houses were going up. If people would just stand up, take responsibility for their actions and stop expecting the government to bail them out, the problem will correct itself.

I am a homeowner who has been making my payments on time.
Recently i have taken a drastic pay cut so it has been very difficult but i still manage to make my payments on time. It seems a bit unfair that the people who are making payments on time do not get a tax advantage.
Also if this plan passes don't you think people will purposely stop making payments on their homes so they can get this aid.
It just doesn't seem fair:(

Thanks

These experts tonite are a little off the mark....in December I called Countrywide about a huge increase in my monthly payment...$750.00 more...I had one of the horrible ARM things. I was referred to a lady in the Texas office that modified my loan in about 10 days after receiving my 2007 tax retuen...dropping my int rate to3.00 YES you read it right 3.00% and extended my years about 5. My payment dropped $700.00 per month and I am thrilled, and depending on prevailing int rates previously that amount could be much more than just $700.00. They always returned my calls, they always answer the phone, and I think they have done very well by me...I did not reccomend them before but now it is a great relationship

WHY DONT BAIL OUT THE CREDIT CARD PAYMENTS,I NO LONGER CAN PAY EVEN THE MINIMUMS ARE WE NEXT

Blame the teachers for not teaching finance in public schools.

Yes and no. There are people who were hoodwinked into risky mortgages, led to believe they could afford a house that they in reality could not. Not a single person has mentioned realtors who show people houses they really can't afford. And homeowners have responsiblility, too. Many had eyes bigger than their wallets. Spending 30 percent of one's income on a home is only okay if you don't mind being house poor and not having a life besides your mortgage and utilities. We've owned 5 homes in 30 years and never spent more than 15 to 20 percent of our income on a mortgage. The homes were all nice homes and we could go out to dinner now and then, see a play once or twice a year, and never run up credit card debt.

I'm 38, drive a 4 yr old car I just purchased 6 months ago after my 10 yr old car died so that I could stay in my house I purchased 4 years ago and still put money away for retirement, don't use credit cards. After reading Obama's new plan. His plan doesn't do anything for people that actually took responsibility, lived good, didn't over spend.

How about blank of student loans & see if that helps, there are several people I know in my age range that would not be worried about their home as much if there U.S. Department of Education loan was erased.

Since the banks are in need of employees, to handle the high number of foreclosures, the banks should hire unemployed real estate agents to help renegotiate the terms on bad mortgages. It will create more jobs and help struggling home owners, killing two birds with one stone.

BLAME REALTORS....APPRAISORS It is a sin as to how high homes prices were allowed to go so fast. That should have been controlled.
WE REIGNITE THE REAL ESTATE MARKET BY LOWERING THE PRICES ESPECIALLY IN CALIFORNIA. Ben Stein had it right you ARE NOT BAILING OUT RETIREMENTS SO WHY SHOULD WE BAIL OUT THE HOUSEING MARKET.

HOUSE FLIPPING WAS A REAL SIN ALSO GREED GREED GREED.

I LOVE the plan as long as it helps me.

Larry
I don’t see where in the plan there is any help for the folks that have been making their house payments on time…
Couldn’t they just impose lower rates across the board and make things better for EVERYONE instead of just those that got in over their head?
Chris in Seattle, WA.

Who is to blame? Developers, realtors, bank loan officers, politicians, speculators, and public education for not turning out more savvy home buyers.

I rented, the prices were way out of line with incomes. I did the math.

My child never had the chance to live in her own home. I have to pay the gvt every year, I get no refunds..... I have no tax breaks since I dont own a home.

I am furious, let the prices fall so that all of us renters in our 40's can buy a stinking home!!!

I would like to know who would qualify for this? I recently was behind on my mortage but I am current today. I had to declaire bankruptcy 2 years ago and my home owners went up from $ 1500.00 a year to $ 4500.00 a year. My taxes also have gone up on my house but the value is down. Please give me an in sight

It took ten pens so that the 10 "important" knuckle heads that signed it could take the credit and get one! And now there is an idiot on saying "everyone was creedy". I WASN'T greedy, HE was greedy!! Speak for yourself!!!

Gary and Amanda!

I understand the only people that qualify are the ones who did not buy interest only loans with no means to purchase a million dollar home. I understand this bail-out is for responsible people who would have been able tp make the payments except for one now lost their job and can not find another one or in some way, have their income cut in half

I don't even own a home because the economy was so bad that I didn't want to take a chance of being taken for a ride. I work and go to graduate school. When will all this end? Everybody is getting bailed out. What about the people that have not been involved in this at all but have lost half of their 403b? Are they going to give me a bail out for that? I'm so mad about the whole thing this is crazy. At some point we have to say enough is enough!

What about homeowner associations affected by foreclosures (10% of our 304 complex)? Bank owned properties are deliqent in monthly fees due to the hoa. We continue to be agressive in our efforts to record liens against them, but until a unit sells we are not seeing any homeowner fees from bank-owned units? Our association has filed four foreclosures against banks. It appears that banks operate under different standards.

Our operating budget cut back $110,000 last year in spending and have little rookm to cut back without decreasing service and property value.

How do I apply to get a bailout for those of us who live within our means and pay our hoa fees?

Any advice?

Larry and not facing a foreclosure but I would like to know if this housing stimulus plan help available for people with second homes mortgages and investment properties? I have adjustable interest rates that due to change nest year?.

Thanks for your reply,
Rannis

How are people going to be approved for "refinance" to a decent APR when their credit score is destroyed? My wife and I are strecthing to make our bills and we can't refinance to a lower rate from our ARM APR. We have looked into a "Loan Mod" but that only saves us .5 for 2 years. We don't have a good enough score to shop for a different mortgage. Our credit was detroyed from some slow payments over 3 years ago and we can't seem to get ahead. How is this plan suppose to help the other millions of Americas like us with this "fantasy land" credit rating system?

Larry, Please bring Jeff back for a longer segment!

I am totally opposed to the Presidents plan. People are upside down in their homes because they bought property at inflated prices- with borrowed money. In Southern California many home prices have doubled and more since 2000. Why should my tax dollars go towards bailing out people who bought more home than the could afford? Real Estate was like Bernie Madoff's Ponzi scheme in Southern California. People made a pile of money on their old house, rolled it over into McMansions, again and again. The last people in are the ones who are now stuck with a home worth so little. My stocks aren't worth what they used to be either- is the President going to make these 'whole' for me as well?

Jeff: "Everyone has done that"
Are you kidding???

I support my President but I am concern that we are rewarding irresponsiblity. Times have been tough for all of us. Certainly, we have more debt that I like but we had to survive. When we purchased our home, most of our neighbors over bought. Everyone wants to blame the lenders but where were the responsible buyers. Our home has depreciated by 10 of thousands, we lost all of our equity, and we owe more than the house is worth. We have been responsible borrowers and paid our mortgage, taxes, and insurance. Why doesn't the bill address us? How will we recup from the lenders 50 thousand in lost value? Houses continue to be sold by the lenders for half of their original value. Tax rolls reflect the value at the sale, schools and governments can not function with the lost revenue..so we are now anticipating higher taxes...no raises...and our biggest investment is a rock around our necks.

The truth is we are all to blame for our economic crisis. Each one of us has made some kind of poor financial decision at some point in our lives. I'm a Democart in that I believe we are all in this mess together. I'm a Republican in that I believe we need to take more personal responsibility for our choices. I'm a realist when I say that no system will work to preserve us unless the people within the "system" operate with integrity and honor. Lastly, to all of you who feel ripped off because you may have to pay for someone else's choices, imagine how I feel every time I pay my property taxes to send your children to school?

Only one thing will persuade lenders to voluntarily modify loans with any viable terms and that is fear of bankruptcy judges cramming down mortgage loans for petitioners. Bankruptcy reform is the answer to loan modification but it takes Congressional action. Millions of homes will be lost in the meantime, driving values deeper underwater, waiting for Congress to act. Bankruptcy reform would be the least costly remedy as the Court already monitors payments. Let the greedy lenders who made their fortune slicing and dicing loans take some of the hit.
Stein is dead wrong. The bottom of the housing market is an artificial low caused by liquidated REO sales dumped on the market in competition with normal sales to reduce their inventory.

Everyone refers to the the foreclosure issue as..."Stopping these banks from Foreclosing on these peoples homes"
These were not these peoples homes. 100% financing...they did not save for "their"home, like our parents did.
It is not their home. It was harder to buy a car than a home during those years.
The RE Guru's on the air...of course they want homes to stabilize they have a vested interest.
If homes were to go up 200,000 per year, the home owners would not share their equity with me!
If you want he real estate market to stablize...you must let nature run its course.
Most people will not qualify at the lower payments anyway. And why would they want to continue to pay at any interest rate, if they are paying on 200k when their home is with 100k?

Banks lend based on loan to value ( amongst other things ) So how do the banks establish value in a market where foreclosures are rampant?

I recently lost my home because I lost my job and could not get a job for 7 months. I now find out that I have to pay tax on the amount the bank "forgave" along with the withdrawl penalty because I had to tap into my 401k to keep a roof over my head. Are the people that are renegotiating thier loans to the present value going to pay tax on the difference when the value goes up and they sell it? They will certainly have considerably more equity than if they road out the market unti it stabilizes and begins to grow again.

RE:

Your Home Foreclosure bailout:

You have a home and food on the table for the next 3 years and 10 months paid by taxpayers. (and no worries)

You want the majority of taxpayers (barely surviving, and paying their mortgage and bills) to subsidize the unresponsible home owners?

Why do I need to suffer even more?

WE are the couple in OK Ben Stein talked about. We both have taught school for 30 yrs. OK is 48th on the payscale for teachers in the nation, but guess what? We paid off our home after 26 years. What are we going to get for being responsible?

Larry,

I have read through many of your blogs and wonder why the gentleman reporting the blogs indicated that most are angry and don't agree with the real estate plan. I saw that many of them are in agreement with this proposal, the same as I do.

I agree with the foreclosure bill 100%. Fortunately, not every homeowner has lost their home. However, far too many individuals have. When neighborhoods are faced with numerous foreclosed homes The entire community is affected. Property values for homes decrease, businesses suffer, and ultimately jobs are lost. Therefore, everyone is affected when homes go into foreclosure. Individuals who are not in favor of this bill need to re-evaluate the situation we are all in.

This plan will not work because of two factors, first we need to nationalize the banks or we will be throwing money down a black hole. The primary reason is that a personal residence in not an investment and never was but all Larry has on is real estate experts that don't even understand basic economics. IE wages have been flat for twenty years yet housing prices continued to inflate.

Yes I believe it is the right thing to do for the common good of all. I believe it is a balance plan with all the differant programs and differant ideas to solve this economic crisis. This aid is not a bailout is more a loan restructure . Everyone who played by the rules and no fault of their own should be assisted in this manner. In the end this problem affects everyone if it is not well managed. This may not be the perfect answer for this point in time but it is a better one than any one else in leadership roles have come up with for this time.

Will the fixed rate for 30 year mortgage really be 4 percent?

we hope the obama stimulis and foreclosure plan will help us here
in las vegas.

Yes, I support the foreclosure plan. I think this is a way to have all involved take some responsbility for this crisis. For those who say this is a bail out of the homeowner, I say they're putting all the blame on the homeowner. If the banks are getting help, the auto industry is getting help, wall street got help... Come on, it's time the homeowner got help!!!

Good job Mr. President

President Obama is being sincere in his desire to help the American people. But we have a fox in the hen house of government! We have a Bernie Made-off, so to speak, who is operating every day in our government! Bernie Madoff is to the people he fleeced, as Bernancke and Paulson are to the American people representing the current Federal Reserve! The Federal Reserve is NOT our government! It is comprised of privately hidden bankers who profit from a fractionalized banking system that is the cause of our screwed up economy! Nobody mentions this! Again! Nobody will report our Bernie Madoff or Federal Reserve System! It has bilked the American public out of trillions, and because of most people's ignorance on this subject, nobody is looking toward the real culprit! Fractionalized banking! The Federal Reserve makes trillions on the backs of the American people under the disguise of helping them! Our government feeds this fox in the hen house and joins the media in pointing the finger in 100 different directions! There is no confusion if
you speak the truth! We are Americans who have been fleeced! We are now known as American Taxpayers, so we can support the elite who continue to "Make-off" (like Bernie) with our precious lives, liberty and pursuit of happiness.

Jeff Lewis says 'we all did it' ;'we all were a little greedy'. WRONG.
Not everyone acted irresponsibly. What about us exempting responsible folks who didn't live high on the hog like Lewis from paying for this mess?

I failed to mention in my previous comment that this plan does not force the industry to do anything just like previous "plans" it need to make them participate.

The few home loans I have seen were approved for an amount of money that the receiver would not be able to pay back the lender with the salary, income and savings that they had. It would be impossible, their salary would never increase to the amount needed to pay for the loan.

Why would loans that could not be paid back, be lent in the first place , it seems that the lenders have responsibilty.

i'm glad obama is trying to do something but to me i think the solution is to stop with income tax...property tax...inheritance tax...gift tax and so on...how can we have money to spend if the government keeps taking it and spending it foolishly?

Ask Jeff if the fact that he is on television glorifying real estate speculation doesn't by nature make him a huge contributor to others trying to do the same thing. No he is not responsible, everyone makes there own decision. But people like him helped to foster that culture of speculation.

In places like Phoenix, prices rose upwards of 150% from 2004-2007, thereby making home prices unsustainable for people to buy in accordance with past income/home price ratios. This plan will help to form a false bottom and is not the answer. The real answer would be to actually speed foreclosures through the system and contact all borrowers with a Pick-A-Pay mortgage due to reset in the next 5 years and find out if the homeowner can afford the true payment...if not, make them leave.

STOOMZEE

I WORK FOR THE GOVERNMENT AND MANY CO-WORKERS HAVE JUST LOST THEIR JOB!!! GET A GRIP

The foreclosure plan will be impossible to control and administer. An across the board subsidy to all homeowners both current and deliquent would have been a simpler strategy implement. If after the subsidy a home owner can't afford there home then so be it. I suspect a lot of those people who receive assistance will end up in foreclosure anyway and this program is simply delaying the inevitable.

I'm curious what Obama's plan is for someone like me: have carefully and responsibly managed my spending, income, and debt throughout the years so that I have excellent credit. I purchased a home well within my means, with 50% down-payment in cash. I have plenty of savings to make house payments for years should I ever lose my job. It's not that I make a ton of money, I have just chosen to live in a way that is sensible with respect to my income level..... What is my reward for being responsible and judicious with my spending? I get to pay higher taxes and bail-out the greedy?

Yes, I agree with Pres. Obama's efforts on the home foreclosure plan. Bottom line for the folks who are whining about how they've "played by the rules" and "done everything right and asking, “where’s MY compensation for doing the ‘right’ things (i.e. lack of financial excess), here are two thoughts: (A) where did you get the idea that you’d get paid or compensated for doing the right thing; what about doing the ‘right’ and responsible thing being its own reward? and (B) you are supremely arrogant (not to mention ignorant) if you think that doing the ‘right things’ keeps anyone safe from such an economic sunami. Fall on your knees now and give thanks that circumstances have not devastated your planning and preparation. Doing ‘right’ didn’t spare Job from suffering nor has it spared a lot of us in this economic downturn. You’d do well to remember that “there but for the grace of God go I.” Going forward, those individuals who don’t contribute constructive ideas WILL be contributing to a deepening problem. So, get over your self-righteous self.

I am sick and tired of hearing the blame for the housing crisis being put on people living beyond their means. That's much too simple an excuse! Most of us in Rochester NY are losing our homes due to job losses at companies such as Eastman Kodak. Without jobs we can't pay mortgages, and the fault for job losses goes back to the government for allowing over a decade of outsourcing our manufacturing base to countries such as Chlna, Mexico and India.

Mr.King, i am a widow of a disabled veteran.my husband pass away nov.of 2007.i am left with only my widows pension and my disability from ss.i am on a fix income and can't afford to pay my house payment.i was advised to send a hardship letter to countrywide and i did all that since my husband's passing. but countrywide has not respond any of my letter.all i ask of them is to lower my payment.do you think that the president would help me.i don't want to lose my home.my only son is in the army who served in bosnia,iraq and afghanistan cannot help me because he has his own family to take care of.i hope you pass this on to the president ,i know that he cares about the family of a veteran.thank you so very much.

The White House (NEW DEAL/PLAN)

TRY GIVING YOURSELF AWAY by David Dunn

Read the book

Last guest said "borrow from house eqity and use it for vacation - everybody does it" Well WE DIDN'T DO IT!. Put yourself in debt for a vacation! how irresponsible.

Im still not sure what is going on. A few years ago when co-workers and friends bought houses well above their means for low interest they were bragging. I stayed within my means and bought a small single family home. Now most of them are in way over their head, cannot make their house payment, and are going to get bailed out. Yet I live within my means make my payments, and I have to pay the price. My question is: In 4 or 5 years when these people that got bailed out selll their homes and have have huge equity do they get to keep it? I feel at least 50% of their equity should go back to the government to help pay the deficit.....Mike

I am so tired of hearing about helping people who are being foreclosed on. First, here in the Saint Louis area, many of the subprime foreclosures consist of people who are not making enough money to afford their monthly home payments. If the Obama plan says that there is to be a debt to salary ratio, won't the majority of these people be forclosed on anyway? Afterall, if they would have stayed within their means then many of these foreclosures would not be an issue. I blame the people who bought these homes and the banks, together. When will people decided to have a plan before falling down the waterfall? Duh!

P.S. I sure hope there is a committee to oversee Freddie Mac and Fanny Mae.

I am responsible but how can this help me?

Yes, but more needs to be done for homeowners and everyday investors. Why are people complaining about the Foreclosure plan when it is the ONLY PLAN / BAILOUT that directly helps the everyday American? We took the peoples money to rescue greedy and unwise multi-million dollar executives and billion dollar comapanies, so why complain about helpling everyday people who even if they were trying to take advantage of making quick money by flipping a house, at best would have made a few thousand dollars? I would be greatly disappointed if we help CEOs and large companies, but fringe upon helping our neighbors even if they had the wrong intentions by trying to flip a house. Finally we must realize that to truly sitmulate the economy we must help everyday investors who tried to use the Real Estate market to persue the American dream of being an entrepreneur. They make up a significant part of the real estate market, has always been and will always be. It is not just everday homeowners, we must help everday investors. We all made poor decisions from this bubble and we all learned. Look at the banks, it is a reason why they took the first 500 billion and pocketed it. They learned from making risky loans; who can blame them you would not make the same mistake again either. Thus, it is evident that you must help the people. The answer is not in the banks. Help the people at any cost for they have learned as well and will not make the same mistakes.

The bailout should have never even occured. In a free market system you are rewarded financially for good business decisions and fail for poor business decisions. The Fannie Mae's, Freddie Mac's, and A.I.G.'s of the country should have been allowed to fail. We would be through most of this mess already. My wife & I live on a modest five figure income. All we have is a mortgage. No car payments, no credit card debt, etc. My wife drives a 13 year old car with 130k miles on it. We've lived within our means yet are being forced to finance the fat cats of the world who lived beyond their means. I'm livid and disappointed in my government. If It were possible, I would quit paying taxes that reward the greedy of the financial sector and invest my income myself.

I am a banker in Phoenix Az., for 28 yrs. The falling property values are not the problem, the problem is why the house values went up. 3 to 4 years ago our market had an 'unrealistic' property value increase of 40% in 1 yr. The following yr. was 18%. Would this many people be moving to Phoenix to warrant such a house shortage? Why would values need to go up this much? Maintain a realistic 6 to 8% increase a year(past history trends) and we would have been fine.

the president's plan may not be the silver bullet that will reverse the course of this widespread mortgage crisis but it crystallizes an outstanding effort from his part to stop the hemorrhage! the problem is not President's good will, the problem is the bank resistance and the negative media campaign put forth by those who want him to fail that will ultimately decide the overall impact of each one of his plans to solve this financial crisis...

Obama had no choice. this is america
you do not want people living on the street
greed was the problem and the people who created this situation
are not suffering. go after those people and help those suffering.
if they are left where they are it will repeat.
have we forgotten enron was that any different

Canada is also going thru the same financial crisis, why are their banks considered safe and why do we not hear about foreclosures?

what does jeff or any of the guests think for those who invested as Jeff to try to make money but are now stuck with 2 or 3 mortgages that are upside down. what is the thing to do forclosure the properties

I have a mortgage thru Countrywide. I am in an adjustable rate. We have been paying our mortgage and was invited by Countrywide to apply for a modification because of the type of loan we have.

We sent in the paper work. We were told we make too much money and do not qualify. They also have been cashing our checks and are reporting us 150 days late and $14,000 behind in mortgage. They say the money is being set aside until the modification is approved. They are adding the payments we made to the modification and reamortizing the loan. Now my credit is ruined.

How can they get away with this?????

We have lived in a small rural city in Arizona for over 40 years and have owned a home this long. In this period there have been several impacts on the community that affected the value of our home. For instance, when Interstate HIghway bypassed Holbrook, Arizona the value of property, homes, businessesketc. dropped rapidly. The city sold properties at a very low cost to encourage industry, economic growth, people who had already invested in businesses were affected by the low appraisals that the City property was used for comparisons.

Where does a bale out end, anyone with a home has purchased an investment that can increase or decrease based on the values affected by a lot of different econoomic impacts. When the governments says we will bale you out , then we all need to be made this offer every time we lost equity in our homes? I don't think there is enough money in the world to make this type of guarantee. We understand risk if we have been responsible. Everyone is auto matically responsible when they sign the mortgage.

Thank you, Velma Perkins

As a Realtor, 2 out of my last 3 listing appointments this month have been homeowners who are upside down due to refinancing recently, cashing out, spendingthe money and now are looking for help from the bank or government. I most likely will be short selling these homes if they get denied.

How will this 'bailout' help the new homebuyers with 5 – 10% down payment and a very stable income. I hope President Obama will reward them for trying to clean up the 'toxic' assets t keep the economy growing. Very low interest rates will be a great start.

Also, some 'HONEST' home owners sold homes at HUGE LOSSES in 2008 but are ready to buy homes to stabilize the home market. Will the plan support their efforts.

Lets Play fair.. YES WE CAN!

Thanks

/TJ

When I was looking to buy a house, even though we have a six figure income, we weighed our our options, did the research and educated ourselves. We decided to put it off for a while. I am very dissappointed to hear that if you are an educated consumer you still have to pay for those ignorant shoppers who knew what they were getting into, and still did it.Im stuck without house and these peanut brains....get bailed out. Your kidding me. this is what America has come to...

President Obama should have called for a 6 month moratorium on all foreclosures to work out a better plan the numbers do not work out this will help maybe 750,000 americans not milions

What about middle-income Americans who won't benefit from either 1)the stimulus package because we are either self-employed or still employed or 2) the homeowners package because we are not "underwater" and are current, although struggling, on our mortgages?. We are tax-payers too and should be allowed to benefit from the trillions of dollars recently being spent through TARP and these two programs.

What about sending this group of Americans a bar-coded coupon to be used towards a buy-down of their mortgage principal when we re-finance. This would be much better than sending those same dollars to the banks who will just hoard it. Also, should the government not federalize interest rates to, say, a statutory four (4%) and allow all Americans to re-finance?. The lower principal will lead to lower mortgage payments and will help stimulate the economy because people will have more in their pockets to spend.

I do agree with the President's $75 billion bailout for homeowners. I believe that it is better than not doing nothing at all. People sit around and talk about what they think should be done and nobody is doing nothing about it but talking. If all of these people are as smart as they think they are, then why didn't they run for president of the United States. Anything is worth trying at this point and time and I believe it will work with safeguards put in place over the bankers who are lending the funds. Let the man do his thing.

Bernie
Kansas City, Missouri

Hi Larry,
I absolutely agree with the President's plan. With regard to the other bloggers, that don't agree, shame on them. First, the person that didn't think it was ok, because her and her husband are working 3 jobs, well lucky for them. My husband just returned to work after being unemployed for 9 months, he is now earning about 40% less income, and he has to live away from home Monday through Friday. Yes, I was fortunate to get a part time job, after trying for at least 8 months. Not to mention through this whole process, we depleted our entire savings and retirement money in an effort to keep all our bills current and keep a child in college. No we were not living beyond our means, we just never expected my husband to be laid off for 9 months. When you return to work earning 40% less than before, you welcome such a plan from the President with open arms. The other person that commented on having to take care of the people like they had to do in the 70's, etc., no we didn't expect the government to take care of us, but unfortunately our situation along with many many others were beyond our control. All I can say is "Thank God," our President listened to the people.

Barb from NJ

I can afford my home and I was part of the subprime mortgage with and interest only loan that esclated from $821/mo to $1171/mo. I became disabled and waited on disability for 7 months. I have been in touch with my mortgage holder on a daily basis. Finally when I becam deliquent enough, they offere a forbearance that I had to pay $3500 for, and monthly pmts of 1141mo. and this is all in hopes that they modify, andthis is until they get o my file to modify. Well I made the pam. of 3500 and the next day I was served foreclouser papers, and I was told that there was nothing like that in the works at all. I feel blind sided. I am a single mom and have got towhere I am all on my own, and I can affor my house payment I just need help with what I am behind on. I can' refinance because while waiting for disability I couldn'tpay my mortgage so my credit is very bad at the moment. Bewfore all this happened I had a credit score of 684 not to bad od a score. So what can and will Obama do for those on disability to keep them in there homes? Now a days rentals are doing credit checks and with the bad marks from the missed payments don't even allow me to move into an apt. Please help us stay in our home.

Michelle! That is exactly what I am waiting for. After all... the interest to banks from the federal government is 0% so why not the banks make 3 or 4% on each mortgage instead of making 5% or more

Repubicans and Dems dont know what average person go threw on a daily basis their salarys dont put them in tuch with reality. I feel there is no one who represents the average person. the only people that dems and repubicans represents are big corprate america. lets bail out the fat cats first.
I hope dems and republicans read this

It is way past time to stop with the bail-out party. The only people on earth right now that are not exercising fiscal responsibility is the United States Federal Government. It is like a drunken spend party up on Capital Hill and they are using a charge card that our children's children's children will not be able to overcome. I am tired of hearing what the "American People" want from politicians that have no idea what we want. I want my government to let stupidity and misfortune play out like it was designed to do in our capitalist society. I want my government to start balancing their budget like I have to do and to create a plan that shows how they are going to become debt-free in the process. No one was complaining when everyone in the housing industry, including the speculators, were sucking up the profits in an over valued market. No one was whining when unqualified people were getting loans that were beyond their means to pay off.

Ok so if our gov. can see the need to nationalize health care then why can't they kill off all the real estate vultures too. These people are the blood suckers that helped drive up prices. I'm not hearing any of them tell about how the housing has been over inflated beyond what they could ever be worth.

This industry has not morals , Death to all realtors!!!

This is funny beyond beleif. Don't learn your history and this is what you get. You bought him, now support him. But to answer your question I must ask one (how do you spend yourself rich)???? Ask your President.

Why won't banks or savings and loans make loans on property that are part of irrevocable trusts even when the person asking for the loan has enough money in savings to cover the loan, perfect credit and the property has huge equity?

do you think the obama stimulis and foreclosure plan will help us here in las vegas?

while mortgage insurance will not help homeoewners, where is the money going and how come it did not effect the problem the banks are in?

Hi Michael, Do you miss being on 'The Young and The Restless?' Nice work getting into a new line of acting work!

The jobs we have sent overseas need to be brought back home. The people losing their homes need income to get them out of the hole they are in. Jobs would help "stimulate" the U.S. economy.

I have been in the military for 23 years and when young sailors make big purchases they cannot afford Uncle Sam makes them pay. I am talking about young sailors. 17-25. years old. It is called being accountable. They pay of thier debt and change thier standard of living. Like moving back on the ship...
All the home owners who lived the life style of the rich and famous all the sudden now have a reality check. They need to change their standard of living. Instead of living in a house that was worth 500,000 they need to live in one that is worth 50,000. I do not see alot of former home owners in homeless shelters. Infact I have not seen one yet...
Trust me I was once one of those sailors. In fact all sailors are forced to pay thier debt. Accountablity is painful..

Everybody that is complaining needs to zip their lips. For the last eight years the republicans did nothing while this economy slid into the abyss. This President has a plan and for better or worse we pay into the government through taxes. This has been so, from the begining of this countries history. We pay taxes to the government so it can function as it is doing now. It's not his fault the we had an idiot for eight years. He is doing more then GB ever did or dared to do. If he fails, then it is on him, if he does not, Republicans get ready to change parties.

I do not agree with the bailout/stimulus...whatever you call it. You've got people living above their means – just like the government. That's how we got in this mess. Banks making loans to people who werent even legal residents ; people who couldnt prove their income, etc. How stupid! Oh, and how is $8 a paycheck suppose to help anybody?

Why did the democrats chop out the $15,000 tax credit to everyone? Basically if you bought a small home and were responsible we are not going to help you. But Mr. irresponsible gets to keep his McMansion and his two HUMMERS. They should have given the $15,000 to responsible homeowners not just first time buyers.

I do not agree with it. In fact, I am sickened to my stomach over it. It is an insulting slap in the face to people who force themselves to go without and stick to a budget they can manage, to watch careless others who threw caution to the wind and knowingly, and deliberately mortgaged themselves to the hilt just to impress their family and friends. AT THE VERY LEAST, anyone being rescued by this, through no one else's fault but their own should have their credit reports severely damaged and red-flagged for the maximum statute of limitations. Stop throwing money at problems you can't figure out how to remedy. This "fix" is revolting.

What about people who are renting because they knew they couldn't afford to buy a home, and now are losing their jobs and can no longer afford their rent? Is it any better for them to lose the place they call home than for someone to lose the home they can no longer afford to pay the mortgage on?

Don't understand why people who live within their means having to "pay" for the foreclosure plan. Can someone explain why I should pay for reducing someone's income to payment ratio when they overbought to begin with. Can understand if someone recently lost their job – is that a requirement?

is the homeowner responsible? overextending themselves, giving false income figures to banks...?

we have heard from everyone but the banks. what to they say?

Lewis is right on. Banks won't lend to qualified buyers with credit scores in the high 700's, secure/long term employment and money in the bank! They look for a reason to deny credit.

All politicians and financial people should be required to watch “House of Cards” that explains exactly how the world and we got to this point in our economy. The thieves of Wall Street and mortgage companies are to blame and are getting off Scott free.

I totally disagree with the housing bailout. For those who have been responsible, who shopped the market, educated themselves on the various aspects of home ownership, we are being punished. I am not a home owner not because of credit or money or stable job but because the homes were over prices, old, too large, too modern the list goes on. The deals being offered were too good to be true and anything too good is no good. I am still waiting for home prices to stabalize in North Jersey where prices for average homes are still upper $300's – $400 or more. I don't agree with helping getting rich quick schemes while working people like most Americans are punished. President Obama, Congress, Senate, what are you really thinking about. Compensate for once those who have done the right thing.

There is no simple answer to who is responsible. At this time we are in are in uncharted territory. I agree with Obama's plan for the middle class
unfortunate facing the possibility of losing their homes. Let's get results
even if the government has to take over the financial phase of restructuring for a short period of time.

Appraisals no matter where you live are coming 50% less than what it appraised for 6 mths – 1 year ago; Makes it impossible to refinance;

THOUGHT; Allow to refinance to those willing to pay - REQUIRE NO APPRAISAL – NO COST TO TAXPAYERS..

I believe that would work better than the BAILOUT

My then 13 year old daughter and I moved out of our family home almost 5 years ago. I had and still have a very good job, but as a result of being the sole support of a family of 5 for 25 years, I had no savings for a down payment and have been renting ever since. I was smart enough to know that I couldn't afford the houses that were for sale, nor could I afford the mortgages that were being offered (I knew the rates were too good to be true). I played by the rules and made sure my bills were always paid on time. I wondered how people could afford the beautiful houses they lived in and the cars they drove. I was certain they were living well beyond their means. Well, now the taxpayers, including me, are bailing out these same people. And because I rent, I have no deductions come income tax time, so now, after paying taxes all year (including an extra $20 every month) I still owe over $500. I guess I should have found the home of my dreams and went in debt way over my head. The government would bail me out. But I guess my late father's idea of being financially responsible is much too ingrained in me!

Jeff Lewis may have had all the money in the world to flip houses, however, he instilled ideas to those in the public without money with his t.v. show. Take some responsibility Jeff. You showed America that is was an okay thing to be greedy.

The lady guest on Larry's show was just suggesting that folks with the money should run out and snap up these foreclosures (for a song) and implying what a great deal they were. That's really irresponsible advice. Buying foreclosures is really risky. Not only could you be buying a home with significant damage from angry former owners but you can also get stuck with a whole bunch of hidden charges, fees, surprises, multiple liens, title problems, tax issues and more. Playing the foreclosure game is only for experienced investors! You can lose your shirt thinking you're getting a great deal.

where I live parents are out of jobs..they are calling their children in college to return home go to work & help the family out..the young people are balking giving their parents a hard time "we do not want to return home we want out degree ,etc",,,well they will need to because no one will pay their tuition..young pwople want what they want right away..my take is if they work for a few yrs & help the parents out they will mature & appreciate more things when they return to school....this is a crisis..we need to help in every way we can & sacrifice...thanks, Larry...

My wife and I have owned our home for 18 years and we have paid our $2000 mortgage every month. We have had to refinance 3 years ago to make much needed repairs.

Now both my wife and I have been laid off. Besides the mortgage we are paying an additional $1000. In this situationhow can I pay my expenses?
I am looking to get a temporary break on our mortgage. This is not handout; not a bailout. I think it is people like me that Obama is talking about..

Jake/Princeton NJ

I really don't think it will help what needs to be done is putting a banking system together that is like Canadas where there are guidelines in place and the national bank has control over the banks and mortgage specialists

I agree that the real estate market should be allowed to drop and level out naturally. We have a modest two-income budget, live in a modest home, drive older cars, and make only high-ticket purchases that are necessary, not luxury, all to be able to provide our children a high-quality private education. We have chosen to make these sacrifices. This is the state of affairs in our household – times are tough, but we are not asking for a bailout. Why should those who made choices they could not afford be given the benefit of a bailout?
Why should we as a nation spend money we don't have to bailout ithose who made irresponsible choices. We have become so irresponsible as a nation!

Not entirely. Banks make TOO much $ from "fees" and
their credit cards so they don't HAVE to loan anymore.
If loans and savings were ALL they could do (no more
investments and credit cards), they would loan again
- as it was about 35 yrs. ago. Pres. Obama needs to
REGULATE the banks anew.

As a lawyer practicing real estate law, I often wondered how the borrower would be able to afford the mortgage payments. It has been common for a borrower to simultaneouly close on a first mortgage followed immediately by a HELOC (home equity line of credit). The combined balances exceeded the value of the home at the time of closing. The slightest disruption in income would mean disaster for the borrower. Both the bank and the borrower understood the risks. To now rescue both parties at taxpayer expense is an insult to those Americans who have acted in a financially responsible manner. Had we known that the government would rescue us from our financially irresponsible actions, we all would have borrowed beyond our means. What is the President offering responsible Americans? It appears to be higher taxes and insurmountable debt for our children and grandchildren.

I voted for Obama but I do not agree with this plan. People should buy homes that they can afford. A part of the affordability equation includes planning for contingencies. This means that "yes" you need to factor in the possibility of losing your job and part of your income and still making the paymentson anything you buy. To me this is called being responsible. People have to learn to make purchasing decisions based on BOTH best case AND worst case scenarios.

Larry,

Every since I can remember people I have looked up to have told me to go to college and be somebody and you will make good money. I like a fool did that mostly on federal financial aid in the forms of loans of 40000 dollars. I finally graduated and founda job taking home 19000 dollars a year after taxes and healthcare insurance. How can a person spur the economy when only 5 dollars is left after rent, utilities, and gas for transportation? I am literally one disaster from being wiped out!

If Americans are asked to conserve, then what is the White House's answer for all the $ it cost for the president to fly to CO for the latest "bail-out"?

–And, THIS ONE who says you have to be a rocket scientist-at least I know a home is NOT an investment! It is about time people realized, owning a home is a DEBT!!!

I don't see anything wrong with requiring 20% down payment. That's what the requirement was when I bought a home.

Larry
Bottom line, the GREED of the banks are to blame, they could have just kept recieving their mortgage payments on the teaser rates and continued to make money and kept millions in their homes and avoided the real estate crash .... instead they got GREEDY and insisted to raise the rates (need to make more $$$$ haven't made enough billions yet) knowing millions would no longer be able to make their payments .... and as a result so many have had to walk away from their homes .... thus now (no not even teaser rates) no payments are coming in and furthermore they have collapsed the housing market and devalued their investments ........ and now ..... their getting a bailout by the taxpayer .......... WOW ............... only in America ..... by a born American now living in Canada

In order to make this bail out fair to the American people those who get help should have to pay that money back in raised income taxes!!
(According to Obama he is going to create 3 Miljon new jobs, so those who do not have one today should soon be back in that market)

Raised income taxes is something Americans do not like, but would be fair to those who have lived within their means!!!

I live in MO and have worked with Realtors for years. Getting a home loan in MO is not difficult. People are qualifying with 5% down even now. I think banks don't want to accept the risk in the areas like Phoenix, CA and FL. where they think there is still more depreciation coming. They are actually trying to keep people from ending up side down going out of the gate. Do you really blame them. Are the appraisors really sure how to appraise a property in those areas right now.

I dont see it being to little 2 late=he is moving very fast overall and the past administration left such a crisis he can only do things in rations. Banks are very greedy and he also said that people whom get help will raise the property value of the ones who are fortinate enough to be able to pay on time!

Why should we prop up these mortgages when the prices of the homes they are based on is totally unrealistic. For example, a house that cost $400,000 in 2006 is probably worth $250,000 today. Who is going to eat the $150,000 difference–the American taxpayer? The whole idea of home price support is untenable.

Ron Levine
Philadelphia

“Do You Agree with the President’s $75 Billion Home Foreclosure Plan?”

No I don't. No one helped us out when we had to give up our home in Houston82 during the oil crunch. We came back & own a house now.

Thanks

I was a loan officer at a mid size bank in Ohio for many years. I took the application, reviewed credit and income, did underwriting and also granted approvals, throughout my banking career. All of our variable rate mortgages were properly underwriten and disclosed clearly at closing. The homeowner had to qualify for the highest possible mortgage payment based on the rate margin and caps and that payment also included monthly RE tax and insurance. That payment was approved based on their current debt/income ratio...36% Maximum, which included the new payment plus any other payments they currently owed. I think many of these homeowners with variable rate mortgages, knew how high their payment may go to, but they ignored it and went out and bought new cars, ran up credit card debt and maxed out the equity in their homes with a line of credit and then when their mortage payment increased...due to the rate or even just higher taxes or insurance...they cried that they couldn't afford it! They should have always budgeted their monthly payments based on what that highest possible mortgage payment could go to. It was disclosed at closing and they had to sign that document. So, no, I don't think all delinquent variable rate mortgage holders should be able to have a "do-over" just because they did not manage their finances responsibly.

Housing Plan

What about the people like your panel who had many successful years in the mortgage or real estate industry who due to declining values and strict underwriting guidline are now in foreclosure, because they cant earna aliving..............

It all started with NAFTA Out sourced JOBS Reep what you sow

A lot of those people need the help because of the state of our economy. If they hadn't lost their jobs, maybe they could still make their mortgage payments. This gives them an opportunity to try to renegotiate the terms of their mortgage loans in an attempt to help them keep their homes. They still have to be able to pay under the new terms. In other cases, bankers, mortgage companies, etc. purposely lured people into loans they knew they could never afford. Those predatory lenders didn't follow the rules and should be prosecuted.

I would like to know how many tax dollars have now been spent on the case against Ms. Anthony ?

The people who are focussing the problem on home values are those that make money out of homes (e.g. real estate agents and investors). The real problem is the monthly payment. Please keep to the issue.

There's a informmercial on tv recently that is called "John Becks "free and clear" real estate systems," John Beck teaches people how to buy homes that have been (tax) foreclosed on for pennies on the dollar. Basically homes are bought for the amount of delinquent taxes owed on the home. John Beck offers list's of homes in your area that will be available for the amount of back taxes owed. How does this work? Do local tax foreclosures have priorty over bank foreclosures? The informmercial showed several beautiful homes that could be purchased free and clear for $500.00 or less. Some were higher. If this is true, why doesn't the federal government buy up these homes for people caught up in this mess? Wouldn't this be a great way to end foreclosures by banks? Tax forclosures beat bank foreclosures to the punch! It has been said that banks have sold real estate loans from bank to bank and back to back, to the point paperwork was lost in the shuffle as the paperwork wouldn't catch up with the sale of the loan. Each time the real estate loan was sold to another bank, the bank made a profit. Personally, I think we-the-people should take care of our own foreclosures, not the bank as they have already made too much money off a foreclosed home. Although I'm not interested in properties for myself, I would love to see you interview people that are educated on this subject. You're my favorite talk-show host Larry! The best of the best! Thanx!

why not offer a government program that offers discounted interest rates to anyone with a mortgage now. For example, a 4.5 % rate would save my wife and I approx. $200 month...for as long as we have our mortgage maybe 28 years.

I am a homeowner and pay my mortgage on time. It amazes how people can't see the picture. We are in this crisis first and foremost because of the housing crisis. Our home value has declined dramatically due to foreclosures around us, thus affecting the whole economy. If this foreclosure spiral is not stopped, it will affect us and it has already. What happends to our friend next door affects us. This plan is intelligently conceived and will help.

Why do people think they are intitled to a "DREAM HOME" with every they have always wanted in a home. In a real grown up world we dont' get every thing we want. The prices too dammm high, purposely overly priced by realators and speculators. Homes are over priced and the price needs to come down so let the market correct itself. THATS LIFE.

The "Mark to Market" laws directly contradict the purpose of home loans (i.e.-A bank that makes a 30 year loan should not have to meet requirements of a gyrating market when they have no right to collect the loan provided payments are current). Eliminating banks requirements to satisfy "Mark to Market" regulations would immediately enhance the balance sheet of these banks in a more realistic manner. Home loans are not liquid assets intended to be traded like stocks. There were some similar results in the early 1990's as a result of "Mark to Market" regulations and it appears nothing was learned from the result.

How can banks make any new loans, knowing that if the market continues to collapse such loans could put there institution into perilous financial circumstances, regardless of the guarantees of the borrower and its ability to repay the loan. If the real estate market declines further the bank could be wiped out before the borrower ever has a chance to repay the loan in full.

The increase in bank balance sheets through the elimination of "Mark to Market" regulations would also enable banks to have work more flexibility with borrowers, which in turn would keep at least some percentage of homes from flooding the market.

A further example is how "Mark to Market" regulations would impact new developments, which would create jobs and be good for those markets that are not overbuilt. Raw land essentially becomes valueless in a collapsing economy without available debt. Nevertheless, "Mark to Market" requires that the bank decrease the value of the land on its books, even though the loan was never intended to be repaid prior to completion of the development. Therefore, what bank would possibly loan to a new development in this market.

it local goverment! they jack up values for more local taxes i built my home for 35,000 and it was jack up to 70,000 tax value we need to slice local gov taxes...

Why am I paying for my neighbors Vacation and cruise to Hawaii and Monte Carlo, their multiple trips to Vegas and the exotic chandelier and other high priced furniture in their home?

Here is the story of a friend who bought a New home in Tracy, CA in 2004.

The cost of the home at that time was 350K. I paid 20% down. My neighbors also bought the same model at the same time with a 3% down payment.

They refinanced with a 3/1 Arm cash out in 2005 for 500K because the value of the home had gone up. I did not do any such thing and just continued to pay my mortgage. They quickly spent the money on buying the exotic chandelier and other high priced furniture in their home and went on a Vacation to Hawaii and then on a Cruise to Monte Carlo. In between they had time to party out in glitzy Vegas.

In 2008 their first re-set took their payment way above what they could afford and they fell behind on their payments. The current value of the home is back to what it was valued in 2004 – 350K.

Now, per some of the advocates of foreclosure prevention, a principal write down (from 500K to 350K) is going to be handed out to my neighbor by the government using my tax dollars, so that he can continue to pay the same monthly payment as me after having run through 150K of Tax payer money! Thus forcing me to pay for my neighbor's luxuries?

Both of us have teenaged kids. I did not indulge in any of the splurges that my neighbor indulged in. I saved money equal to 8 months of living expenses just in case I lost my job and put away some more in a CD so that it could help pay for my kids college tuition fees!

no job (no money)...no workout plan for you. This is the package to save your home.
Mary in NC

I am a real estate broker in Washington State. I believe the stimulus is only a part of the solution. If the average American taxpayer knew how the banks actually treated homeowners in trouble and wasted tens of thousands of dollars in terrible disissions and actions, they would never of agreed to give them a bailout.

One of the major reasons that we can not help sellers get their homes sold when they are upside down in them is the banks are not very helpful. They don't return calls, etc. Many real estate agents will not work with properties that are in forclosure or pre-forclosure status because of this. Obviously this causes homes to sell slower and for far less money. Many of the bank policies are causing homes to be forclosed on instead of being sold in the short sale process. The short sale process according to Fannie Mae saves banks an average of 40K per home over the forclosure process.

Here is one of the many problems that the government could make a regulation change that would not cost the taxpayers any money but would probably save hundreds of millions of dollars and also protect and bailout thousands of homeowners. In Washington state a bank can not seek a deficientcy judment after forclosure. However, when sellers require a promise from the bank that they will not seek a deficientcy judgement after a short sale the banks refuse.

Many homeowners would rather get forclosed on than risk a deficiantcy judgement of 25k 50k or more.

Sorry this is so long. I just thought you might want to hear from a person that fights this problem every day. I am currently working on 3 pre-forclosures right now and had one deal die a couple of weeks ago because of this very problem.

Help us President Obama.

Larry

Joan fron Canada:

We need to federalize all banks that have their hand out. I have noticed that china has one federal bank. The government either increases or decreases the interest rate. Other private banks have a choice to either follow or not. Citi Bank in China has decreased their interest rate to 4%. They need to do that here too.

Larry,
I am a Real Estate Broker in Colorado and Nevada. I repersent Wells Fargo and Chase and others. I sell about 5 to 7 hundred houses a year. only about 10% don't diserve it. it is not the banks fault people get a divorce or homeowners get on drugs. I have seen it all. most of the people that we foreclose on are just stupid and try to blame it on the banks... nobody put a gun to anybodys head to refinance and take money out of there house.

Larry this plan is a good start. I'm a real estate broker in mass . This may put a floor on prices and reduce inventory.

Dear Larry,

I do not agree with the government bail-out of irresponsible homeowners. It penalizes the majority of responsible Americans. I am sorry I voted for President Obama.

It seems to me we are still talking about homes as investments. This is what caused the problem to begin with. Homes are for living and should not be viewed as an investment. We need to let home prices stabilize without government intervention. It took years to escalate and will take years to stabilize. Let the free market work.

The way out of this crisis is let responsible people refi at a cheaper rate w/o an appraisal. It cost nothing. Banks could charge all the regular applicable fees and make a mint. Homeowners pocket extra money to spend in this struggling economy and finally some people that were not irresponsible get rewarded. The gov. doesn't even have to spend Billions.

The banks are unwilling to refinance some mortgages because the banks don't hold the mortgage to the property. Remember the loans were repackaged and resold over and over again. So now its a mess even trying to find out who really owns a particular property.

Pre-judging, excuse me, what else do you do with hard physical evidence, just explain it away for the sake of a fair trial.

Dear Larry:

The person or persons responsible for the current mess primarily are Alan Greenspan and the Board of Governors of the Federal Reserve. They are the ones who artificially depressed interest rates during the Bush Administration by dumping large amounts of Fed funny money into the credit markets, creating the housing bubble. The banks took that money and pyramided it into an inflationary wave, which regulators and the federal government allowed to infect the housing market, and now that the banks are in trouble, they have to disassemble the pyramids by converting their "high powered" money back into "low powered" money (cash on hand). You do that not by lending deposits but by keeping them in the vault (what they are doing with the TARP funds). What that does overall is collapse the money supply, causing many houses to be worth less than their purchase price and depressing cash flows for everyone else. Contracts written in the old, higher money relation now cannot be discharged, and to protect diminishing cash flow, firms like GM and Chrysler have to cut costs which means lay off workers. As prices become more depressed, the whole thing just cycles down until stability can be restored to the banks. That's why they call it a "depression."

I STRONGLY disagree with Ben Stein that Retirement Accounts/401(K)s are as much a staple as owning a home. I am 49 years old and have been employed full-time since the age of 17 in the lucrative field of law and have NEVER been offered any type of retirement by ANY of my employers as they were always only interested in their own financial success and never wanted to share it with the "lowly" employee. 8 years ago, I bought a home (within my income level) putting $30,000.00 down, which I received from any an annuity in a divorce, and today, due to decreasing home values, have lost that money plus at least an additional $20-30,000.00. As a single working mother, I did whatever it took to make sure I could make my mortgage payments without sacrificing being their for my children as a mother and decided 3 years ago to give up my 30-year "fixed" mortgage to get into an affordable payment through a low-interest mortgage with the intent of refinancing when my son was in high school. I started to go into negative amortization about 1 year ago and was lucky enough to qualified for a modification of my mortgage which locked me in at a rate (for only 5 years), but my payments were interest-only. Now, since the cost of living has increased dramatically, my debt-to-income ratio is upside down and I don't know how much longer I can continue to pay my mortgage without something else suffering or whether I would ever even qualify for a refinance.

I do not agree with the President's plan. It relies on the banks to renegotiate these bad loans. Aren't they the ones who wrote the bad loans in the first place? I say let the bankruptcy judges handle it.

People, please remember, it was the big investment companies that created this whole mess. Not you're neighbor who was scammed by a greedy mortgage broker who was only looking for a commission. I hear people saying that there are people who were irresponsible for taking these loans. I disagree, it was the banks who were irresponsible for writing them. If someone lied about their income, it should have been caught by the bank. If you don't understand what a mortgage backed security is, don't worry, most investment people aren't exactly sure either. But, it's what created this whole mess. And if you are responsible in making your payments, then good for you. But we shouldn't make someone suffer even more because they were taken advantage of by greedy investment firms.

I am a Real Estate agent in Indiana. I have seen the downturn and the effect on my business. It would be great business for me if the lenders would loosen up the lending restictions, but I don't see that as a positive thing. Loose lending got us into this mess in the first place. My parents had to put 20% down when they purchased thier home, I would think that 5% down and a credit score over 600 is not too unreasonable. No reason to loosen up lending and get in this mess all over again. This will be a 3 – 7 year recovery, but I don't see that as a negative thing. A small boost to the buyer with the tax credit will help, but no need to take extreme measures. Let the real estate market recover on it's own so that in the end its a true strong market, and not a fabricated one.

Always work hard and pay your bills on time. Who knew that my parents and my husbands parents were so stupid. Guess you can't trust anyone. Freezing in Wisconsin.

I have two invesments homes in Florida and the value has dropped below the current balance. I want to refinance but banks keep telling me that I can't unless I pay the diffrence to match the 80% requirement to apply for a loan. with the Obama plan, will I be able to refinance without paying additional money?
Marco

Who's this Jeff Lewis dude ?
What a goof , Larry must have owed him a favor to have him on the air, this guy added nothing to the show.
Little knowledge, big ego............

Let me make a correction, if you can't receive any assistance f rom your current mortgage company then you should be able to receive assistance from the President. I truly believe that if you are currennt and need assistance because your home doesn't appraise at what you purchansed it at, then you should be able to receive some type of assistance. May God Bless President Obama! He is trying to assist us when no one else will.

Larry: It is better then giving away all of the money to the ruthless and greedy banks and their CEO's who have been stealing our money for so many years. Ride on OB. At least you have the guts to help Americans in real need.

Larry,

Great show!

Just came back home to Michigan today from Tucson, looking for a home for my Daughter. I am not buying the rhetoric that the banks are dealing to off load foreclosures. We made an offer, yet the bank came back with a number that was in the same range as identical homes that were not in foreclosure. And, they stated that they were not willing to bargain.

Help me understand this behavior.

Thanks
Mark

Larry:
Here's why the Mortgage Bailout is not only misguided, it is unethical and amounts to nothing more than stealing from honest taxpayers.
In the first scenario, my wife and I saved for 5 years to purchase a $300,000 home for our family. We risked 20% down, or $60,000 (hard-earned and saved) to acquire the home. In the second scenario, our neighbor also saved $50,000, but read "Nothing Down" and watched "Flip That House" instead of going to work, bought an insured Certificate of Deposit with his $50,000, then "bought "a $300,000 house next door to us with $0 down. Fast-forward ahead three years. Now, both homes have depreciated and are worth only $350,000. In our case, we still have $10,000 "equity" in our home but $(-50,000) in our pocket. Remember, those were REAL DOLLARS we put down. Meanwhile, my poor neighbor is now "under water" so he gets a refinancing to a lower rate than me (paid for by honest Americans) and now owes only $250,000 on his $300,000 home. MOST importantly, the bum STILL HAS the $50,000 in CASH that he didn't put down in the first place!
WTF Larry - may God help us all....

I live in WILMINGTON OHIO, we have lost Dhl, 8,000 jobs plus. I go to the auction for foreclosed homes at the court house.

Every month the banks are buying back there homes sometimes for more then owed on it.

How are you going to get a deal ?

Larry,
I would love to see folks get a 5 year access to their 401K and other retirement accounts without penalties or taxes to refinance or buy
a house, in five years when things get normal they would have to put it back.

I understand that the stimulus bill contains an $8,000 tax credit for first time home buyers. As of what date does this go into effect?

I disagree with the plan, particularly as it is not coupled with solutions that will cause banks to start lending again. The following is just one example.

The “Mark to Market” laws directly contradict the purpose of home loans (i.e.-A bank that makes a 30 year loan should not have to meet requirements of a gyrating market when they have no right to collect the loan provided payments are current). Eliminating banks requirements to satisfy “Mark to Market” regulations would immediately enhance the balance sheet of these banks in a more realistic manner. Home loans are not liquid assets intended to be traded like stocks. There were some similar results in the early 1990’s as a result of “Mark to Market” regulations and it appears nothing was learned from the result.

How can banks make any new loans, knowing that if the market continues to collapse such loans could put there institution into perilous financial circumstances, regardless of the guarantees of the borrower and its ability to repay the loan. If the real estate market declines further the bank could be wiped out before the borrower ever has a chance to repay the loan in full.

The increase in bank balance sheets through the elimination of “Mark to Market” regulations would also enable banks to have work more flexibility with borrowers, which in turn would keep at least some percentage of homes from flooding the market.

A further example is how “Mark to Market” regulations would impact new developments, which would create jobs and be good for those markets that are not overbuilt. Raw land essentially becomes valueless in a collapsing economy without available debt. Nevertheless, “Mark to Market” requires that the bank decrease the value of the land on its books, even though the loan was never intended to be repaid prior to completion of the development. Therefore, what bank would possibly loan to a new development in this market.

I am one of those who purchased a home some years ago that I could afford and have now paid off. I often wondered how so many people could afford to buy homes in the $300,000 plus range when their income in many cases was considerably lower than mine. There are places in this country that I would love to live but cannot because they have allowed the average price for a home grow well beyond my ability to purchase one. So I have lived the last 22 years in a place I can afford and did not purchase my first home until I was in my 50's and knew I could handle the expense. Before that, we lived in rentals. Now I begin to see how it is that all these people have been living in $300,000 to million dollar plus homes, brand new luxury cars in their driveways, and a nice boat besides. And you want me to keep them from suffering the consequences of their poor choices? When can I expect a bill in the mail for my share and how much will it be? Money available for first time home buyers but if I decide I can afford to build a better house in my senior years and thereby help the economy, there are no breaks for me.

I realize that there are many people who through no fault of their own and due to an economy that no one predicted now find themselves out of work and unable to hold on to their homes. If these people made good choices at the time they were made, then I am all for helping them out. I have seen many of the hard luck stories in the news and cannot begrudge these people some help. Make the banks lower their interest rates. Do not allow them to start raising their rates on credit cards simply to make up for what they did selling these low rate credit cards and what they are now losing. I used to receive credit card offers in the mail daily; often three or four offers and never from a bank I have heard of or done business with. They were almost all from out of state banks. They would insert their little checks for 5 or 10 dollars in their offer and put the tiniest print on the check advising you that if you cash the check, you have just agreed to some program you would never have use for. I would immediately tear up these offers, shred them, and wonder how many trees would have been saved if they would stop wasting the paper it takes to print and mail these offers.

I am not happy to have to go into debt over something I personally had nothing to do with but on the other hand, I understand that the entire nation is effected by the troubles of so many and if we don't do something, the troubles will eventually find their way to my door. I know that the Stimulus Bill has many faults but I can see no other way for President Obama to try and deal with this problem. He has my support and my prayers for success.

Why don't the banks put the borrowers interest rate back to the first interest rate that the borrower could afford and just extend the payment over a longer time?

Dearest Larry:

I lived in New Orleans for 18 yrs. We purchased our hm. 5 yrs. ago. Never late making mortgage payments till Katrina hit in 2005. Wells Fargo was our mortgagee at that time. Like so many other people in our area, we got screwed in false promises from W. F. with the moreatoreum and the methods of payment options we had, but never got accepted for. After almost a year of going back and forth in phone conversations, never with the same person, at W. F. , the outcome of all the confusion and mislead, we got a foreclosure letter.
We then refinanced with AHSI. Our % rate went from 5.2 to 8.9. With AHSI, we have never missed a payment nor ever late for the past 2 years. We're now trying to refinance but until we get approved don't know how much more we can make our high payments. We are now struggling with our business and this economy. We don't want to ruin our credit score. Is there anything or anyone to help us or preventing us from sinking into the sea of foreclosure?
I hope I made myself clear. Hopeful, Faye

Larry,
I see MANY are getting the blame for this economic crisis. Why is it that I do NOT see the oil company's getting any blame for this crisis. When the price of gasoline is doubled and people in their homes are trying to not only pay for their mortgage AND high gas prices for their vehicle to get to work, then SOMETHING has got to give. They probably were okay paying for their mortgage BEFORE the gasoline started rising but after months and months of this extra EXPENSE (gasoline) along with rising utility bills and maxing out their credit cards because they had no choice to pay their bills, who wouldn't go bankrupt and finally lose their home ?? The high price of gasoline which started several years ago has created a domino effect to this economy. So ONE of the blame for all this -is the OIL companies and the investors investing and speculating in HIGH oil prices.

Complaining and hypothesizing will not change the corporate risk management structure. Neither will hauling executives in front of Congress. We need to start criminal investigations and get some trickle-down jail time going starting at the top with corporate executives as well as those in the Executive Branch–past and present. Will the banks start lending out money if failing to do so constituted taxpayer fraud and resulted in jail time? Let's try some dis-incentives. Just don't put the bail window next to the discount window, please. People might confuse bailout with bail, and the former should not feed the latter.

NO, i don't agree with this plan. my husband & I have worked to buy our home. Sure we could have bought a more expensive fancy home. But we didn't want to live beyond our means so we went with medium priced home which we could afford. Why should we bail out those who made bad choices. When is all this going to stop. I am sick of all this.

It is not clear that the ”right” people will be saved and protected.
I came in this country ten years ago with enough money to buy used car and a master’s degree from my country. Now I own a house and work in a respectful chemical company.
I got mine education for free.
I have an idea.
Give money to pay off student loans.
1. The banks will get their money back for lending;
2. You will add new consumers for the economy. To buy a house or a car;
3. You will create strategic incentive for young Americans to get an education.

Thanks.

I partly agree with the President's plan. However, I do not agree with bailing out homeowners who either purchased homes they couldn't afford, bought into balloon mortgages (completely idiotic) and/or buyers who bought homes with the intention of flipping them. Why are we always bailing out the rich and undeserving when hard working honest folks like myself obtained legitimate mortgages based solely on our income and credit score and never qualified for 0 down loans that others seem to get without question or documentation? Let's be honest here. Let's stop screwing the middle and working class.

My husband and I are first time home buyers looking for a good deal on a home in Florida. We found our dream home in the exact neighborhood we were hoping to get into. The house was a foreclosure owned by Fannie Mae. We were so excited that it was in our price range and we didn't want to lose it so we made a full price offer. A few weeks later we heard that we did not get the house. Amazed at the result I called Fannie Mae and they told me that they abolutely will not sell a house they own to a first time homebuyer who is getting FHA financing! This was just appalling to me that they can discriminate against the type of financing a person gets. This is the type of thing that is keeping people who are able to buy a foreclosure from doing so.

i think the president's plan is pretty ambitious but i think concurrently there should be a compromise from the banks to put back the foreclosed homes back in the market at a discount price and allow those with a reasonable fico score to seize the opportunity. this would entail some short term loss of capital but this would have a rapid reinvigorating effect on the market. buyers would jump onto bargains, compensates for new foreclosures to a certain degree, and home prices would go back up before you know it....

While I understand Americans who are angry regarding the President's stimulus housing strategy because they purchased their homes when the prices were low and now find themselves in safe positions, I do not appreciate their arrogant attitudes that gives the fall impression that they had anything magical to do with their safe status. Know that you are more lucky or blessed than smart. Once you accept this fact you are more apt to see the big picture and to understand the plight of others. This is not the time to gloat over your good fortune but the time to look at your neighbors (the entire country) and accept the fact that the world is bigger than "your four and no more". If a large percentage of Americans are not well we are all sick-get it??

PROPOSED SOLUTION.
Why not restructure all loans and in doing so, steal from inflation? We expect inflation to run at 2 to 3% per year, and that is a lot over 30 years.
EXAMPLE: Take a 30 year mortgage which costs $2000 per month and does not include property taxes. Has anybody considered an across the board rescaling of the payments such as this:
year 1 – reduce to $1200
year 30 increase to $2800 plus interest
year 2 – pay $1300
year 29 – increase to $2700
etc. and meet in the middle at year 15.

The financial engineering types will then be re-employed as the equations defining derivatives and mortgage-backed securities are restructured accordingly, so employment will benefit.

Banks will get their money in many cases.

And at year 15, a $200,000 house incresaing at 3% per year thanks to inflation will have gone to:

s = p * ( 1 + i ) ^ n ; approximately

s = 200000 * ( 1 + 0.04 ) ^ 15 = $360,000

and voila – house not underwater and can be sold.

And similarly for other mortgage types 7×1 5×1 etc.

Restructure all and steal from inflation.

Thank You,
Douglas A. Paratore

Dear Larry,
I am watching your show live and I am agree with Ms. Barbara's comments banks are not serious to take care home owners who are paying their mortgage payments punctual and loyal with banks in this tough economy.
I hope Obama's plan will help us to modify their loans as per the economy downturn.
Thank you,
Ilyas Quraishi

A subject that has not been covered is the increase in the interest rates by the credit card companies. Chase, Capital One, etc. I had a chase card for 16 years, never late, had high balances always paid off, never missed a payment and in most cases paid much more than the minimum payment.
My credit limit was reduced in 1/2, but my interest rate was more than doubled. The only way I could stop the automatic increase of the interest rate was to opt out and cancel my card.
Plus they send you the information with your billing as an enclosure that you have to read diligently, most of the stuffed items you normally just throw out. If you do not respond within a short period of time, the interest rate is automatically increased.
How many people know this! I have spoken to many people who have had the same thing happen. I could see the reason behind it if you have late fees, etc., but for no reason should not be allowed. I was at 7.42 APR and the rate was increased to 15.99%.
This farce needs to get out to the consumer. I had not see any info on it until fortunately I read the "stuffings".

Hi Larry, Everybody seems to have forgotten the people who have already lost their homes in 2008. What about them? Some are pretty destitute.

My son worked for the countrys largest home supply store for many years, he drove their large delivery trucks to construction sites. He and his wife wanted to buy a home and a mortgage sales person or broker (whatever they call themselves) told them that they qualified to get a mortgage and could buy a house. They went for it and bought a house in NH to raise their children in. On the way to the closing the mortgage person contacted them on their cell phone in the car that the interest rate they were quoted was not available to them because their credit was not good enough, basically because he drove a truck over the road, however they could still get the mortgage and close on the house if they agreed to a variable interest rate mortgage. He shouldn't worry about it thought because they could reapply for a fixed rate in a few months and they were sure they would be approved. So my son and his wife did it (without asking anyone for advise). They went to the closing and signed the papers. Their $1200 payment soon balooned to $1700 and when their $600 dollar per month tax bill was added to it, it was too much. They fell behind in their payments and then they couldn't get a nwe mortgage of any type. Needless to say after fighting this battle for two years they lost their house and are now living in a four room apartment. Their house was auctioned off and now they're worried about owing the IRS for the amount of the house that was written off by the bank, several thousand dollars. What about these people, is the government going to help them somehow? We helped the bankers that caused the problems, are we going to help the victims?

has anyone heard from citibank/bank of america?

Should we not be rewarding people who have been making the right choices, people who have lived within their means and people who do not need a bail out ? When will we start rewarding good behaviour ?

Ok Larry, to the guest who responded to the laid off worker asking about if she could qualify for the mortgage stimulus, and said, "ther are no free lunches here, anyone participating must be able to repay their loan". Should have said there are no free lunches here FOR THE taxes payer, were only going to give free hand outs to the greedy banks who refused to work with insanely high interest rates to begin with, as Barbara said, the banks want to go away form the table with all of the cash that they can. EVEN if that means the entire country ends up in a vitous cycle of foreclosure leading to job loss, leading to more foreclosures. Its a terrible case of GREED

Please, no reduction of the principle. That would be so unfair it is essentially theft from taxpayers by the people being bailed out.

When is the state of California going to do something to protect the children of Nadya Suleman. She's purposely brought these children in the world with no health care, no sustainable income, and now we find out her home is in foreclosure. Give me a break. Living in poverty is one thing.....purposefully subjecting your children to it is quite another. C'mon California. Take custody of the octuplets. The taxpayers are already paying their bills.

As the government seems to be hell bent on subsidizing the stupid and greedy idiots who bought over priced homes in the last few years, we might as well try to make it simple and straightforward, instead of throwing in a bunch of impractical rules.

I would say, the most simple solution would be to write down the principal to the current market value (CMV) and create an IOU in favor of the lender/s for the difference between the CMV and the Mortgage balance, which would be payable with interest if and when the home sells above the CMV and will be extinguished on the sale of the home.

If the home sells for less than the CMV, the IOU will be a total loss for the Lender.

If the home sells for more than CMV+IOU, the Homeowner keeps the balance above the CMV+IOU.

If the home sells for more than CMV but less than CMV+IOU, then the value above CMV will go towards paying off the IOU.

These IOU's can be securitized and traded providing liquidity to the Lenders, although I am not aware if anyone would be willing to buy these IOU's, I can definitely bet my hat that there will be at least a value of a dollar on these IOU's.

If these IOU's become tradeable, the homeowners could buy out their own IOU's too (at the market price, which would be a steep discount to their face value), that would definitely improve the price of these IOU's. The value of these IOU's would also increase in tandem with the home value. I see some exciting possibilities on the IOU's. If the initial value of the IOU is say $ 100000 and the IOU is trading at say 10000 the homeowner can buy it off for that price and then they get to keep any profits on the sale of their home!!

Now, about the abuses of this rather simple program:

1. Should this mod show up on the Credit Report? I would say yes!. The IOU can fall off the report when it is paid in full with interest! Yes, we will need for the Credit Reporting agencies to incorporate new parameters into their calculations.
2. What about me selling my home to my brother and vice versa and thus getting rid of the IOU liability? – item 1 should take care of that because banks may not be too willing to lend to someone who has had a mod..
3. What about people who need to move for whatever reason and buy a home where they have moved? – I would say, this is a tricky issue, my suggestion would be for the IOU to be transferred to the new home.
4. Should documented income be a criteria to qualify for the mod? – I would say that documented income should be a pre-requisite to any mod.
5. What about those who lost their jobs? – My suggestions would be to allow a moratorium of a max of 2 yrs on the payments and bundle these payments into an IOU again.
6. Do people who can afford the current payment also qualify for this mod? – I would say YES to this also, because by reducing the monthly payment, we are allowing the people to spend, which supposedly drives our Economy!! The other flipside is that even if the people end up saving this money, it can be used by the banks to enhance Credit to businesses.

The bottomline, is to keep it as simple as possible so that it does not lead to more fraud and cause heart burn amongst the diligent home-owners or the honest tax payers!!

The rich (BEN STEIN) only look for a way to use the avg. person,and there is a lot of people on wll street doing the same.
We in the U.S.are easy game for these crooks.
Just look at the money we handed these crooks ,we are being invaded from with-in. How can these people make so much more than a worker, when they can't run their job right, and they talk about some one who wants to stay in their home,like they started the problem. 15% interest is lone sharking, arms are a crooks easy money. % raises are the cause for all this uneven wealth.
no one watching the chicken coop, the foxes run wild killing all the good stock.
To many rich penny annie millionaires,that can't start a busines, because they want all the profits for their selves. This is only a part of the problem. I was defraud of 15,000 for a used car, no one can do a thing about it. I event told WAMU it was fraud, they gave my money to a bank,because they ask for it first. TO MANY RATS My bride & I are 73 &74, our car is 10yrs. old our money is low (never made over 40,000/yr
raised 7 great American people. 3 for the first time are having trouble and We can only help one. WHAT A BUNCH OF CRUDES YOU RICH ARE!
glambert@intergate.com

Is there such a program that allows you to refinance your home at the current market value and suspend any payment on your negative equity for 3 years. And after 3 years you pay on that negative equity at 0% interest in addition to your first mortgage.

Yes, lets by ALL MEANS hope she gets an extremely talented cagey lawyer who can just get her off the hook. That would be fair, that would be the American way. Do they still call it LAW school?

Blah,Blah,Blah. Make your own life the best you can, hold your head high because you made your own life and don't ask me to pay YOUR bills.

What happoned to me. I was makeing enough money to make my house payment until the gas prices went sky high. The company I work for down sized and I started makeing less money then the mortage company raised my interest rate so I Was having a hard time makeing my house payment so we refinanced and it snow balled from there.

There are some who have lost jobs – not bought too much house or refinanced or took out home equity loans. Wells Fargo neglected to offer a reverse mortgage as an option for reinstatement with the explanation that they assumed we knew about it and had considered it as an option. I thought that was why we had to call in to find out our options. Of course there was no incentive for them to say you qualify for loan modification when the two houses my family members lost had 30-50% equity. They refused to let them reinstate with a reverse mortgage and sent a letter with the figures on reinstatement by cash payment the day before the foreclosure even though theystayed on the phone until 9:00 p.m. All this happened because Obama refused to extend the Bush moratorium until he had a plan. More homes will be lost on March 03 in GA on the courthouse steps.

Why is the value of the home so important. This makes no sense unless you are going to sell.

Mr. King:
The national economy mess caused by the mortgage industry can be corrected by the mortgage industry. The President with a stroke of the pen can allow 100% FHA loans...no down payment, low interest, fixed rate mortgages will correct this nationwide problem.

You have got to ask the right questions and get the President's attention...his program is missing the most important problem.

Thanks

CAN WE STOP WRITNG BOOKS HERE ABOUT MORTGAGES..

I love the way everyone blames the borrowers, listen, the fact remains the lenders put out these fancy products designed to get anyone into a home. Why isn't anyone blaming the actual investors who were buying this paper on the secondary market in the first place, these folks whose pockets are well lined and probably are not in forclosure themselves, should have had some fiscal responsibility and realized that when you buy a person a house with them promising to pay you and giving them 100% of the value of the home( lets face it you bought them the home) and didn't even look at their income. If you had above a 720 you were able to go no income no assets. No income no assets, means I don't car what you do, how much you make and whether or not you have any kind of reserves to fall back on. I remember when they used to call it stated income, when the lenders would fund the loan with a letter from the borrower stating how much they made, no verification. Once they realized that they were making some borrowers commit fraud by making them sign this letter, they released the no income version, that blatantly disregarded income all together, we just didn't ask, it was a no income loan. Now tell me who is to blame. Shouldn't these well off investors who make 100 times what the average American makes, have had a bit more fiscal responsiblity, I think so.

This woman, if guilty, is mentally ill. No one in their right mind could have done this to that little angel or she killed the little girl by accident and tried to cover it up.

Hi. my loan is through countrywide, is countrywide part of the homeowners foreclosures stimulus package?

WORK WORK WORK WORK WORK WORK WORK WORK MORE WORK MORE WORK WORK WORK KEEP WORKING WORK WORK WORK PRAY FOR DEATH

It does not matter who caused the problem, just how to fix it. Allow people to refinance at 5.5% 30 years fixed no matter how much equity they have in the home. No writing down the principle. Those who can't aford this don't desrve the home they are living in.

I wish the policy was more focused on addressing the value of the property.

What I am gathering about the current economic statis is two things.

In regards to the housing market we inflated propery values and gave loans to people who could only pay unless there entire income was used to do so. (Nobody is saving money)
Comment: I have felt the houses have been overpriced for what you get for a long time and am very glad I waited.

At the same time we gave our public enterprises an incentive to perform there production of goods over sees. So now standing next to the people who were living pay check to pay check are those who thought they had stable employement
question: What specific things in our polices with private companies provide incentives to go oversees and what is being done to remove them?

I don't think the program will solve the problem. I agree with Ben, home prices need to come down. Five years ago I resisted buying a new house because I could not understand how the prices could be maintained at such a high level with wages going down. People in this area just don't make the money to pay for what contractors were asking for. For my children, I hope home prices fall a lot more so they can buy a house.

I am a single parent and the sole support for the household. I put myself through school starting 14 years ago and have begun repaying $60,000.00+ in student loans...these will be paid off when I am 73 years old. After struggling for years to keep up with my mortgage payment, I was finally able to get out from under a high interest mortgage and refinanced 1 year ago. I will be paying on this until I am 83 years old. I go to work everyday and pay my bills on time. I don't believe there is any help coming my way from the government. But I will be expected to pay for all these bailouts for others for many years to come. After all, I will have to work until I am at least 83!!!!!

The value of the home is used because that was their assessment of the collateral. See the bankers themselves truly believed that values would just continue to rise, either that or there is a greater scheme out there to devalualize the dollar. I don't know maybe to make room for a new currency???? HMMMMMMM

I have established several modifications since 02/2008 with Washington Mutual, and my lender informed me that I was not eligible because I was still making my mortgage payments. I have not made any payments for the past 8 months because the interest rate was adjusted last year. Since my lender has not helped I decided to get outside help from another agency by the name of "Nations Choice". I paid $1900.00 for the service. I just want to know if I fall under this new plan the President is establishing.

If Obama bailed out 2 big companies which if they are a company they must have had plenty of money why cant he bail out people that need help with their homes? Maybe because the rich get mad that Obama is helping with money where it needs to be helping the needy. The rich dont care at least someone does. GO OBAMA!!!

I have been unemployed for a year, I have been making payments on time and my credit is good. Two weeks ago I spoke with my lender and then submitted a hardship letter, within that time (2 weeks!!) we were approved for short term relief. My husband and I were surprised so we called them and they even told me they hadn't received my paper work. We are a little suspicious but don't have much time before our mortgage resets.

I would like to know is anything going to be done to help new first time home buyers ? I would like to buy my first home while the prices are down but cant get financing.

go to realtor.com put your zip code and look to see how much your home is worth,,,its a joke

Hi, Larry,
I strongly disagree with with the mortgage bailout plan. Why should people who live within their means pay for those who speculated on real estate or lived beyond their means?
Money should be spent on creating jobs, funding small business programs, and the market will correct itself.

Thank you very much for the opportunity to voice my opinion.

Thomas

I also think that in a democracy the government should not use taxpayer money to bail out banks and others. The housing market is what caused this mess. It caused everyone to be blinded by greed and I include the real estate brokers and agents who helped to push over priced homes so they could get a bigger commission. I for one don't agree that people are loosing value in their homes the reality is that the market is simply correcting itself. The homes which appear to be loosing value is really falling to its true value.

I am shocked that Barbara Cochran call this plan "rocket science" (I guess she knows only to buy homes, rent them or sell them and make a ton of money as she put it!!). The oher experts also seem to lack expert knowledge. As far as I know 80 to 90% of mortgages in this country are backed by guarantees from Fannie Mae and Freddie Mac corp. (and more will be added under the plan by adding another 200B of guarantee money). Given this many of the "bad loans" will qualify for this plan as long as the owners will be able to show that they can still pay the "modified monthly mortgage payment" (there is no free lunch – as Barbara seems to want – she was saying that this lady who is laid off and will not be able to pay the mortgage even if her loan is reduced to half should be helped out. If so we will need another trillion). Obama explained the high level plan so well, probabbly the high school kids attending his talk understood it! It's a pity that B feels that this is rocket science. The basic plan is 1) Those who can still afford to stay in their homes by reduction in their interest rates rather than not pay the mortgage under current rate and file bankruptcy, will be helped by this stimulus (plan will pay some interest if the lender is willing to take some loss also – no free lunch, sorry). These are mostly people with ARM loans, 2) Those whose mortgages are under water because of the downturn and who fall under FM/FM loan guarantee norms will get assistance in restructuring their loans with FM/FM backing – by giving incentives to the current lender for restructing these loans. This has to be done because under the existing conditions these people will not qualify for refinancing. I suppose this is mostly for people with fixed rate loans but have had some changes in their life (like spouse loosing job) that make it impossible for them to pay the mortgage. Bottom line is after the qualified people must be able to afford to pay the monthly payment of the restructured loan. What's the roacket science in this??

PEOPLE SHOULD REMEMBER THAT THE CONGRESS IS RESPONSIBLE FOR THIS AND THAT IT HAS BEEN LEAD BY THE DEMOCRATS FOR TWO ANS ONE HALF YEARS!!!

Lets face it, there is no real solution, the problem is too grandois. There are several different groups and all will feel cheated one way or another.

Yes and it couldn't have come at a better time. I just hope the plan address the many small banks that are not fair and trying to work with homeowners. I sincerely hope President Obama will implement assistance from banks other than FHA until folk that are laid off can get on there feet. Also, someone needs to address plunging credit scores because of lay offs. iF you get a job your FICO score will prevent refinancing.

This is a great lesson for our kids. Make your loan payments and the government will give you a thousand bucks a year for five years. Unfortunately, our kids will be paying for this costly lesson.

Have we forgetten that this countries financial system was credit through the Assumption Act. A plan created by Alexander Hamilton that assumed all the states debts. Yes, Credit. This country is a country built on credit. Even though some do not agree with the plans of the President that fact is that this country in good times and bad times has always stayed afloat on it's credit. People we will get through this. This country has been attacked twice and we managed to pull together in times that seemed worse then this. To quaote Jefferson " we are all republicans we are all federalist". People, "we are all republicans, we are all demecrates", but, most important we are all AMERICANS. What ever color you are. Yes, This country needs all to do their part through taxes or other means.

hello larry i would love for you to ask your folks on your show tonight what is president obama and his demacrats how are they going to help us that are on SSDI social security disability are they going to give us stimulus checks seems like obama wants to spend his bill in wrong places because he should not for get about us that are on social security disability and help us out with money would you please ask my question to them thanks larry iam a big fan of yours go larry richard d of burlington vt

SOME THOUGHTS AND SUGGESTIONS THAT MAY HELP TO MITIGATE THE CURRENT AND COMING CRISIS.

CURRENT:

*****There are always some who take advantage of the system…but this is not really the cause of the problem…the problem was created by a downturn of the economy combined with a meltdown in the mortgage credit market….with lenders only lending conforming loans for primary home buyers with full documentation loan underwriting, etc etc…you have a much much smaller market to sell homes into..we need to vastly expand the number of potential home buyers who can qualify for financing…self employed, second home buyers, jumbo loans…etc etc…if we can open the market we can mitigate the damages our lack of prior action has set in motion and still avoid disaster

lets create a marketplace for newly securitized loans underwritten in conformance with revised guidelines and incorporating an agreement to a revised and expedited set of default protocols that would allow both the borrower and lender to initialized court intervention and oversight to get an authorized lender representative empowered to work with the borrower in a prompt fashion and to allow for an expedited foreclosure process that might mitigate lender losses in cases where there is no viable workout possible(the current system is 150 yrs old and different in each jurisdiction and has no alternative for the lender except to seek ownership of the property…a task they are ill equipped to handle on a national basis

govt guarantee of morgages would be cheaper and than bailouts, lost taxes, lost job loss etc etc and it would allow investors in the new mortgage backed security pools to value and invest with a degree of comfort

Issue 1) Our state court systems are not equipped to cope with the current foreclosure crisis. The state courts are overloaded, practice and procedures vary from court to court,they have neither the staff and facility nor the expertise to resolve the foreclosures in any coherent or timely fashion. A uniform system is required

Suggestion:
a) The current foreclosure structure is costly, cumbersome and outdated. We have, over the last 20 years, changed the structure of the market granting mortgages and created a market for selling them , but have yet to look at what happens when they go wrong.
Create a uniform federal structure jurisdictionally mandated and empowered to address the issues, knowledgeably populated with the appropriate judges, hearing officers and support staff to coherently resolve foreclosures sensibly. We can salvage more for owners and lenders alike. If this intervention is possible in a timely manner and approached in a thoughtful fashion, more can be salvaged for lender and borrower alike

b)Consider legislation that creates a uniform expedited foreclosure process that gets the matter before the court quickly. The legislation might consider an alternative approach and structure within which the loan and mortgage itself(as opposed to the real property) can be sold under court order and guidance, as opposed to the current rigid and cumbersome structure which forces a lender to seek a court sanctioned sale of the real property itself to the highest bidder. The current system allows for no uniform intermediate possibilities that would be more humane towards owners. The current system also forces lenders into real estate ownership and management roles and exacerbates the economic impact of a failed loan.

Issue 2) There are no clear uniform or understandable uniform alternatives available for lender or defaulting owner contemplated within our current legal framework

Alternatives for additional legislation consideration might create more options to the foreclosure process:
a)possibility...under statutory uniform agreement guidelines, owner and current holder of the loan execute newly created standard form agreement under which lender modifies the terms of the loan( reducing the rate for a period of time to a rate determinable , in consideration for "second chance" and the owner would execute new uniform documents which would provide for an expedited procedure allowing the lender to obtain possession and control of the collateral in the event of further default (deed in lieu of foreclosure (which would become effective and released for filing upon breach of the revised agreement). The owner gets a second chance and the lender, in the worst case, avoids the time and cost incurred in the CURRENT drawn out foreclosure process.
b)possibility...under statutory uniform foreclosure guidelines, the court orders the sale of the note and mortgage(as opposed to the property) restructured by the court, with a revised uniform mortgage deed, which allows for an expedited transfer of title and expedited possession in the event that the owner breaches the new terms. This option could be used if the owner/property can qualify for the restuctured loan.
c)possibility......it appears obvious to me that the current methodology for foreclosure(EACH COURT AND JURISDICTION UNIQUE WITH ITS OWN RULES, ETC) and the subsequent repossession and administration of bank owned properties is not only unnecessarily painful to owners, but also unnecessarily cumbersome, inefficient and economically wasteful to the mortgage holder who is ill-equipped to operate and dispose of these nationally diverse interests that they have been forced to take possession of in order to salvage whatever might be possible from their original investment. It would appear that there might be ready investors, better equipped on a local level, who might buy these loans if the process of taking title and possession in the event of default might be made less obscure and less painful.

example: Harry Homeowner bought a property for $250,000 with a 10% downpayment and a mortgage loan of $225,000. For whatever reason(adjust. rate issues, etc), Harry is now in arrears/foreclosure. If the property were re-appraised and Harry's finances re-evaluated an investor(probably closer to the community) could probably be found who might pay 50%, 60% or 70% of the face value of the loan, purchase the loan and work out a payment plan with Harry at a rate he might be able to sustain. The new investor buys a $250,000 lien at a reduced price and can afford to lower Harry's rate and still realize an excellent return even if the loan is held for a substantial period of time, Harry get's a chance to retain his home and the current foreclosing loan owner recoups more of their original investment than might be possible if the foreclosure/ repossession route is followed or if the loan has to be sold as non-performing in a bailout scenario.
An independent marketplace for this type of investment could easily be encouraged. These restructured loans could again be securitized and sold. Again, a uniform legal structure, guidelines and a simplified expedited methodology for lender/investor to obtain legal and physical control of the property would be required to make this viable. Again, taxpayer dollars are saved.

d)It is apparent that we must do what we can to return value to our real estate. This can only occur if loans are available to as many viable potential buyers, as may be prudently possible. Fannie and Freddie or some new variant on the theme must be funded and mandated to buy loans meeting uniform underwriting guidelines and offered on terms that are not only attractive but allow more potential buyer's to qualify, than the standard limited loans now available. The pendulum swept too far one way and now seems to have swung too far in the other direction. We need to open the gates intelligently to encourage and empower more buyers to enter the market. We need to force mortgage rates down to record low levels, increase demand until we can re-establish the value in real estate and allow it to to stabilize.

Issue 3)THE COMING CRISIS IN COMMERCIAL REAL ESTATE LENDING

In TRA 86 we eliminated some of the benefits to owning real estate for investment purposes. The problem it created is history, but the lesson learned carries forward and allows for an opportunity to at least mitigate the looming wave that threatens our system in the near future.
a)If we restructure the tax system again to encourage investment in real estate, at every level, we can increase demand and return value to these investments, stimulating the economy and avoid much of the coming chaos. Even poor Harry Homeowner(who has subsequently been forced to relocate to find new employment) can then rent his old home and utilize the loss and depreciation deductions to help him stay solvent and meet his obligations.

I believe that the realtors also had a great deal to do with the housing mess, by artificially ramping up home prices, sometimes as much as 500% within a few years' time. The "list price" had no bearing on reality, and the higher it went, the higher their commissions. That system ought to be regulated as well.

No. Ms. Corcoran is very incisive in her comments. It seems to me that none of the homeowners who really need help are being helped . It seems that Sallie Mae and Freddie Mac are being bailed out. They will only help homeowners who already have mortgages with no problems and now they can apply for a refinance at lower terms. What about two seniors, one a WWII Veteran still trying to make ends meets in a business that has virtually ended at the age of 83, and a wife witih Parkinson's disease who purchased in 2005 in a downtown run down artist loft area in LA where they offered lower rates than anywhere else and were welcomed to purchase by Countrywide with a subprime loan. At that time these seniors showed income enough to purchase and put $60,000 down.. Two and a half years later prices started dropping and these seniors'income started dropping as well. They struggled to keep paying their mortgage as they watched their IRA dropping, their Bond dropping and their income dropping. Now their property is worth 40% less and they can't refinance and they owe more than the mortgage is worth. They don't want to leave and all their savings are going into the LA real estate taxes and two heavy subprime mortgages. Eventually they won't be able to pay and they will have to walk away or go bankrupt. Interest on t heir credit cards have gone way up as well..

I want a Thank You card from every deadbeat that gets bailed out.

It is amazing to me that people assign such importance to themself. First of all, you have to be crazy to think that 300 million people, most of whom don't work, have anything to do with the sustainability of this country. If you took all the money each tax payer so call pays to the government, it would not amount to the numbers being kicked around in Washington. You can't help someone who prints their own money. Get the picture? Politicians keep Americans involved politically by creating this illusion that their tax dollars are being spent. The reasonsing behind this is to keep small minded people engauged in the process, another words, to make you think you have something to do with whats going on. It's about your vote, the rest is the psycology you can't see. What do you think if you walked into Walmart tomorrow and get pissed off and say you r not going to buy there anymore, answer, nothing nobody would miss you and WalMart would survive. What do you think would happen if you lost you job tomorrow, nothing the government would go on and you would lose your house. Get what I am saying. This goes for all those who think they are spending their children's future on stimulus or anything else. if all the jobs in America dried up, America would still print its money, without a dollar of tax money from you or anyone else. The dollar is backed up by the assets of this country, and you and me aren't one of them. If you think you are, die tommorow and see if the country dies with you.

Why does Larry put a republican propagandist on with a democrat member of congress. Is she supposed to lower herself to Stien's level? If you want a debate put Stein on with Carville or whoever your token liberal is this year. If you want a polite discussion of policy differences get a member of congress from each party, but please don't mix and match because it's not fair to either side .Also, i think it may reveal some creepy corporate bias, yuk.

OK OK, 5 and 1/2 years is enough time for the republicans to screw up. let's take a trip back in time the Demacratic Party took control on 1/4/2007. The Republican party had control of Congress since 1993. That 14 years of control and this problem is decades old. Think About it.

The assest which people think are all dried up are right under their feet. The continent which we call the United States is in itself an asset, "IT"S LAND. Yes, it is correct that that if we calculate all who do pay taxes the amount will not add up to what is being thrown around in DC. Yes, if we died this country would continue to function and yes, we do not leave in an acutual DEMOCRACY, we live in an indirect Democracy. We elect people to represent the whole. But, did you vote and if you did, you also bought into AMERICAN experiment.

well lets see since obama didn't ask the republicans how much money he should use to try and stop the sickin forclosure problem they are now mad about his plans to put 75 billion dollars towards this horrible problem. what the republicans should do is give obama a chance before they start crying foul. i mean all of a sudden the republicans have a lot to say and now BUT where were their big mouths to cry foul when bush was screwing up our country for 8 years, i guess they had their fingers up their butts the whole time. so, all of a sudden they have somthing to say the only time the republicans have somthing to say is when any democrat is doing something they are not involved or any great ideas they didn't think of so they the republicans can take credit for. the republicans should start taking notes and learn how to really run our country they can surely use the training because for 8 years they skipped this class.

It is time for the government to stop inceting tax payers to buy homes or obtain exotic mortgages they cannot afford. To be able to deduct home mortage interest you should have a minimum of 80% LTV or be paying PMI with no > 85% LTV, the loan should be a conventional fixed rate. Sorry if you don't have the down payment or want an ARM you can't afford, the government should dis allow the home mortgage interest deduction. Let's fix the root cause and stop throwing good money at bad – regulate – Canada has sound financials becasue they do.

It can help but may not solve all. There will be time for more legislation to help more homeowners. When I see, 7 of the last 9 new homeowners in my neighborhood put their homes on the market less than 2 years after moving in that opens your eyes. One home down the block was bought 1 1/2 years ago for $269k, the truck driver just sold it 2 weeks ago for $250k.

So it won't help me – I'm not for biting the hand that will save 9 million other Americans.

I am one of the people Ben Stein was talking about on your show. I have paid my mortgage payment on time, did not buy more house than I can afford and am right now in the process of doing a REFI through my credit union at a rate of 4.37% fixed.. No one is helping me with this other than myself and my good credit. This new program of $75 Billion is not helping me with my mortgage payment or my 401K plan that is worth about 70% of what is was worth. In addition, my husband is deployed in Iraq!!! Can you tell me what is any of the stimulus plans doing for me? Thanks for listening!!

I dont like it, but as much as I dont like it, I have to admit that this is the best way to deal with this whole mess. Its better to do something than nothing at all

we can't solve this economic crisis if we don't take care of the housing problem. i do agree with that package. hopefuly it will work.

I believe that President Obama is doing the right thing at this time because too many folk are in trouble with their homes not due to their irresponsibility. Help is need and thank God it's about to start.

How is the credit history going to be overlooked when homeowners in distress start submiting refinance packages. The plan to loan money to people already in distress doesnt make sense.

Home bailout. An absolute joke! I bust my butt my entire life to pay my home off to secure my family and those idiots that got in over their heads get a bailout. Maybe I should just quit paying on my home and wait for my stimulus bailout to come and rescue me. This whole ink altered ,unread ,thousand page stimulus pile of trash is going to back fire.

I'm confused... Does your mortgage payment go up when your home value goes down? NO!!! I make my living buying and selling foreclosures. Bring em on! these people sowed some bad seeds and now I'm paying the price.

I think that President Obama is on the right track. He is correct that you can't help everyone, but you can stabilize a bad situation. This is money from the US Treasury being used to bolster the economy.

I absolutely do NOT agree with the housing bailouts. It does NOT 'benefit everyone'. It does NOT benefit those who do not own real estate, but keeps the expectation is that they have to pay for it too. The silly first homebuyers tax break is a joke, next to steering the entire real estate market.

Shame on CNN for pushing it

No, this is totally sending the wrong message to the American public. What happened to responsible borrowers and responsible lenders? I could have qualified for twice the mortgage that I currently have but did not want to take on that much debt. I also saved and had a substantial down payment. I feel like a fool.