Help for 'responsible' underwater homeowners
October 24th, 2011
10:42 AM ET

Help for 'responsible' underwater homeowners

The Obama administration’s latest attempt to help the housing market targets homeowners whose credit is solid, who are up to date on their mortgage payments, but can’t refinance because they own homes in areas where the market has plummeted and their homes are underwater.

So he's announcing his plan in Nevada. A key state the President must win in 2012 – and bottom there has fallen out of the housing market. Since the peak of the housing market home prices fell 53%. In the Vegas metro area they fell by 59%.  This official says there’s been virtually no refinancing activity for underwater borrowers in the area and this is designed to change that dynamic.

Today the President will announce a series of changes to ease up on responsible current borrowers  so they can take advantage of today’s better mortgage rates. Under the new rules a homeowner with good credit who has missed one payment in a year can still qualify as a responsible current borrower.

The administration official advises that these homeowners will no longer be required to get an appraisal, they won’t need a new full credit check. The official explains, if you’ve been current your lender already owns  the risk. They’ll also do away ‘risk based fees’ currently assessed on homeowners who have bad credit which increases the benefit of a refinance and eliminates the hassle factor.

The official tells CNN the administration has been working this issue with the banks and FHFA to get coordinated. Next, the FHFA will consider the proper guidelines and announce them to banks November 15th.  Homeowners will be able to apply for the refinancing sometime after the 15th.

Between now and the 15th the FHFA could also decide to include another group of homeowners in this package. They could extend these changes to homeowners who have equity in their homes, are current on their payments but have bad credit scores.

One government official advises there are other ongoing plans to address larger housing issues that impact the overall market which will be announced down the line.

As a reminder recall the administration already announced up to one year forbearance for homeowners who lose their job you lose your job – you can defer mortgage payments when unemployed.

On the college loan piece on Wednesday the administration will unveil a plan to ease the burden on recent graduates who are paying down student loans. They can do this unilaterally through the Student Aid and Fiscal Responsibility Act, passed as part of the health care law.

Topics: President Obama

soundoff (64 Responses)
  1. Victoria AvgAm54

    I agree with this 100%.
    As a long time Realtor, I have watched what happened to the housing market closely. Why it crashed in the 1st place due to DEregulation by Regan and Clinton and the president is the only one I see talking about changes and REregulation that makes sense!

    October 24, 2011 at 11:06 am |
    • jean2009

      The deregulation was due to the Gramm, Bliley, Leach Act of in Republicans Phil Gramm (Texas); Jim Leach (Iowa); and Thomas Bliley (Virginia) which was signed in December 1999. It repealed parts of the Glass-Steagall Act of 1933 which banned banks from acting as any combination of investment bank, commercial bank, or insurance company, but with GBL they were allowed to merge... that initiated conflicts of interests and banking conglomerates considered "to big to fail" whereas the previous legislation had worked to protect homeowners.

      We certainly need re-regulation which will do away what amounts to usury.

      October 24, 2011 at 11:47 am |
    • Howard

      Obama's policies have resulted in Afganistan siding with Pakistan against America ... creating a Libya that goes sharia (with thousands of missing stinger missles) ... an Iraq which will be taken over by Iran ... and, the rest of the middle east, who we depend on for oil, to line up against us ... and, throwing our stongest mid-east ally, Israel, under the bus. In the mean time, Obama has diverted, blocked, or stopped all new oil drilling in the U.S.A., in favor of his impractical, inequitable, ineffective green pixie dust ... leaving America dependent on our adversaries for our energy ... and, all of this, while dramatically increasing our debt, and lowering our credit rating, that's what I call terrible leadership. SAVE AMERICA ... DUMP obama as soon as possible !!!

      October 24, 2011 at 1:19 pm |
      • CGeek2k

        Howard, you seem to care far more about what some crazies on the other side of the planet think about us, rather than caring about your own neighbors and countrymen. Perhaps you should rethink your priorities.

        October 24, 2011 at 2:15 pm |
      • huh?

        And this pertains to this article how???

        October 24, 2011 at 6:15 pm |
      • Trace


        You are a citizen of what country? We spent a trillion dollars to re-build our "F up" in Iraq, and where it up to you, we wouldn't spend a dime on our own people.

        I say this with all sincerity, if ever there is a time to pull for the home team, the ole U.S. of A, its now. If you don't see it that way, YOU ARE AN IDIOT and do not deserve to call yourself a citizen of this country. Now get it together Howard

        October 25, 2011 at 8:58 am |
    • Howard

      "DAMN THE UNITED STATES" – Jeremiah Wright ...
      who obama listened to for TWENTY YEARS !!!
      Obama's policies have resulted in Afghanistan siding with Pakistan against America ... creating a Libya that goes sharia (with thousands of missing stinger missiles) ... an Iraq which will be taken over by Iran ... and, the rest of the middle east, who we depend on for oil, to line up against us ... while throwing our strongest mid-east ally, Israel, under the bus. In the mean time, Obama has diverted, blocked, or stopped all new oil drilling in the U.S.A., in favor of his impractical, inequitable, ineffective green pixie dust ... leaving America dependent on our adversaries for our energy ... and, all of this, while dramatically increasing our debt, and lowering our credit rating, that's what I call terrible leadership. SAVE AMERICA ... DUMP obama as soon as possible !!!

      October 24, 2011 at 3:08 pm |
      • jean2009

        @Howard, since you are so far off topic I assume that means you know no more about the topic of this article, than you do about anything else.

        October 24, 2011 at 5:34 pm |
  2. Positive Outlook

    I think the President should also include my stock losses. I have excellent credit, up to date on all payments to creditors, but have lost the same amount of money as those who speculated in their home equity.

    October 24, 2011 at 11:28 am |
    • Vesstair

      There's a very good chance you could get help refinancing the loans you took to buy that stock to lower interest rates.

      Wait, you mean you bought the stocks free and clear, so there is no comparable cost to cut for you?

      October 24, 2011 at 4:03 pm |
    • mdamone

      THANK YOU! Well put. The idea of real estate being different from other markets has now been taught to every financially illiterate person who is now underwater and begging for help. "House is Home" died with the 1950's...and for those who don't believe it, why did you ramp up HELOC's to buy boats, SUV's and big TV's?
      If we assist with PAPER losses on real estate, all markets should be included. Gold is the next huge bubble. When it bursts – and it will – should we use tax dollars to reimburse losses for those throwing their IRA money into gold? Why not?
      Anyone can claim that their investment losing money is 'not fair.' Homeowners underwater are doing it now. Nobody held a gun to their heads to buy at the height of the market. But nobody is holding them responsible for their market and financial ignorance, either. Hey, idiot: if your house just appreciated 100% in 12 months...IT WON'T LAST – DON'T SPEND THE APPRECIATED MONEY. Message received too late, by those to ill prepared and ill educated. Hence the bubble.
      Yet it's funny how the people who made money during the real estate boom – the "rich" – are now blamed and higher taxes demanded of them. I guess being financially educated enough to know when to buy and sell doesn't pay off at the mercy of the "gotta have that next biggest TV and my house will pay for it" unwashed masses...

      October 25, 2011 at 2:45 am |
      • webvyger

        Oh, but it's fine and dandy to bail out the the ultra rich banking industry for making the bad investments in the first place?? How is it okay to fuel the housing markets offering artificially low financing with high risk 100% loans? Then hold the same mortgage owners who are still making their payments hostage by saying they are too risky to refinance at lower rates. That my friend is greed. At the same time the people(gov) are bailing out these same rich bastards by buying up all their bad debt by way of quantitative easing to stimulate credit easing. You have to be ignorant to believe the crap you are spewing. There are lots of folks that over extended, yes, but many of the 13 million underwater homeowners did nothing to warrant your unsubstantiated worthless opinions. Instead of bailing out the banking criminals, why not bypass them rather than let them make another profit and make direct refi's without the evil greed of the banks. Let's get out of this mess without watching them build on their fortunes at our expense this time.

        March 20, 2012 at 9:28 pm |
  3. What?

    The title of this article makes no sense! The only group left out is the responsible homeowners who did not refinance all their equity away and have been making their payments as they promised to the banks! Actually, this is a disasterous policy. Our inability to compete in foreign markets has trashed our ecomony. Low interest rates and deregulation was a political bandaid that simply delayed the inevitable by making loans available to people who lacked the ability or sense to know they couldn't affort those loans and hide our bad economy by spending the future generations' earnings. That created competition for those who were responsible and raised housing prices to unreasonable rates. This is just more of the same. Taking the money of the responsible citizens and giving it away. Its time to pay the piper. Stop trying to save those who are ditching high mortages simply because they made bad decisions (and then purchasing even bigger homes) and start stimulating industries that can compete in a foreign market, if we even have any of those left. Any other effort will just doom us to absolute failure.

    October 24, 2011 at 11:35 am |
  4. DC Johnny

    Who wants free money? Please send me your application for handouts, and indicate whether your state is a battleground state in the upcoming elections.

    Barack Obama

    October 24, 2011 at 11:38 am |
    • Trace

      @DC Johnny,

      I guess the trillion dollars we spent on re-building Iraq was worth it, but a not a doggone thing for our own citizens – right?

      Got news for you, when you look in the mirror, there's an idiot staring back at you

      October 25, 2011 at 9:02 am |
  5. Enough is Enough

    Question Mr. President, I drive a 12 year old car when you use my tax dollars to bail out the guy who took equity out of his house or got a 2nd trust to buy a new car, can I get that new car that I am now helping to pay for.

    October 24, 2011 at 11:47 am |
    • Arch

      You seem to have misread the article, these are not people who took out a loan they could not afford, or someone who was hit with a predatory loan, this is targeted at Responsible people with good credit who's houses are now worth less than they took out a loan on because their NEIGHBORS and other Americans did the irresponsible acts. The people this targets are not the ones who messed up.

      October 24, 2011 at 2:03 pm |
  6. What a Joke

    This is a useless gesture, since most people who are behind on their payments exceed more than one payment missed. But then again, we appear to be in a situation where those people aren't valued as much, since they are economically nonviable. This is simply a reelection move.

    That's quite alright, though, because we're going to move back to a barter system, e.g. You forgive my incredible debt, I'll give you my cure for cancer.

    October 24, 2011 at 12:01 pm |
  7. John B.

    There is no such thing as a responsible under water homeowner. The responsible folks didn't pay bubble prices and leverage all of their equity.

    Why should those of us who showed restraint when offered massive mortgage pre-approvals for overvalued property pay to bail out people who got themselves in over their heads?

    If we're going to bail these people out, how about we give the money to ACTUAL responsible home buyers who DIDN'T get themselves into trouble as long as they use the money to buy out these idiots who bought too much house?

    October 24, 2011 at 12:04 pm |
    • Jason H

      Yeah...anyone that bought a home from 2003-2008 were completely dumb!! What were they thinking with Bush and Greenspan pushing for home ownership at every turn...those dang low interest rates and ARMs!! Can't believe anyone fell for that gag.

      Hope you get the sarcasm...

      October 24, 2011 at 3:14 pm |
      • Loopey

        I can't believe I fell for that either, Jason. When the Detroit metro area had the highest rate of unemployment in the nation, we got relocated to another state.
        Rented out the house for a little while, then the renters stopped paying the rent. We still continued to make the payments even though we were eating peanut butter and jelly and ramen noodles for dinner each night. Tried our hardest to do the right thing. We exhausted all avenues for help, and were told we needed to be at least 3 months behind before the bank would even consider helping us.
        OK, we go that route only to be told the house is not our primary residence so there is no help available. All this AFTER our credit is basically destroyed.
        We're giving the house back to the bank. Responsible? No, but this scenario could have been avoided.
        I have little faith in this new plan.

        October 25, 2011 at 6:03 am |
    • reasonrules

      You make very broad assumptions and statements that I personally know to be inaccurate. As responsible homeowners, when we "qualified" for a $400,000 loan we actually had to fight to get our realtor to show us homes in the range where we were comfortable –under $200,000. We pushed the purchase price to below the then market value, paid 25% down, had and have great credit, and can and will continue to make all payments. We did everything according to reason and tradition. Unfortunately, many around us did not. New homes all around us were purchased in droves by investors, and when the investor lost one, he lost four at a time, resulting in multiple foreclosures sold or selling at roughly 50% of what we paid. Then there are, in fact, a few home in foreclosure from those who purchased more than they could sustain, or they manage for two years after a job loss, but could not manage any longer. We are not in trouble. We are also not stupid. If a program is made available that will allow us to refinance to a lower rate, we will investigate the opportunity, just as we would have, if we were not underwater. It is what any reasonable, responsible homeowner would do to conserve the most money that they can.

      October 24, 2011 at 3:56 pm |
    • Trace

      @John B ...not so smart

      That had to be the dumbest post anyone living in the real world has had to look at in a very long time. You are essentially parroting faux news sound bites and I doubt you're getting paid for that crap.

      You couldn't possibly blame people like Phil Graham could ya? Look that name up and learn ya something pal.

      October 25, 2011 at 9:09 am |
  8. scieng1

    I wonder what off-sets the banks will have to take to declare the higher amount of risk they are acknowledging for taking the same overvalued houses for less income? I would assume, under the new regulations, that this means less money from any participating bank for business loans, or loans to people who are NOT "underwater".

    October 24, 2011 at 12:08 pm |
    • Trace

      Some late breaking news for ya....THE BANKS ARE AWASH IN fact, many banks are thinking of charging people for keeping money in their savings accounts. With the stock market roller coaster, playing havoc with the people's retirement account, its seen as an alternative. So don't you fret your little head with worry about the banks, they're just fine.

      October 25, 2011 at 9:13 am |
  9. petemg

    Instead of protecting the Fannie Mae and Freddie Mac, absent President should make them accountable and not point fingers at the people who borrowed for the homes. The borrowers had to inflate the value of the house or the bank would not loan them the money.
    Also let us say the borrower borrowed at $100,000. Now the bank wants the house to be devalued to $75,000. And the person owes let us say $80,000, maybe the loan should say they only owe $5,000. I mean if it is fair for the banks to devalue the value, allow the borrower to take advantage of it as well.
    Obama needs to be present at his post in D.C. and not campaigning under a guise to promote his plan. If it quacks like a duck, and waddles like a duck, it is a duck. If he is campaigning like a campaigner he is campaigning. He is campaigning for his next four years. He had a job description that he has deemed is not his idea of. He must realize who voted him in. It was not Kenya, it was America. He needs to take Ritalin to regain his focus he never had.

    October 24, 2011 at 12:18 pm |
    • GRofPA

      Yea – he should buy a ranch in texas and go on vacation, like bush – that was much more effective.

      October 24, 2011 at 1:08 pm |
  10. Cherie

    "Between now and the 15th the FHFA could also decide to include another group of homeowners in this package. They could extend these changes to homeowners who have equity in their homes, are current on their payments but have bad credit scores."

    If one is underwater on their mortgage, how can they have equity? This IS an article about being underwater on your home, right?

    October 24, 2011 at 12:34 pm |
    • Jason H

      I think you may have a reading comprehension issue. The first group of people would not have equity...the SECOND group would have to meet all of those new requirements (have equity in their homes, are current on their payments but have bad credit scores.) Those are mutually exclusive groups.

      October 24, 2011 at 3:17 pm |
  11. Curtis

    This is just the same watered down recycled garbage as before that will never accomplish anything to help the economy as a whole recover. Its borne of the idiotic notion that if homeowners start getting lower monthly payments for their underwater homes, they'll save more, and put that in to paying the mortgage down faster.

    Right – because people who are struggling with cash flow who have seen the banks profit from destroying America and then be bailed out with their tax dollars while they get the shaft really want to turn around and give more money to the bank for the same inflated loans. Until this or any future administration of any political party starts talking about a program to universally write down loans issued during the bubble, this is just another doomed-to-fail dog and pony show paying lip service only to the best interests of the non-corporate elite constituency.

    October 24, 2011 at 12:44 pm |
  12. S

    Bought a house you cant afford? Thats OK, the government will bail you out. Went to college to better yourself and your country, got student loans, but can't find a job in the worst economy since the depression? Too bad, watch Sallie Mae rip the food from your very mouth. You're out of luck.

    October 24, 2011 at 12:52 pm |
    • cj28

      Do you really think everyone who is Underwater bought houses they couldn't afford at the time!!!!!! Where have you been living under a ROCK? Many people have lost well paying, long standing jobs due to the economy. They have taken new jobs at lower salaries to try to make their house payments so their children will have a home to live in and food to eat. If you did your research, you would understand that "underwater" mortgages are no fault of the homeowners, you want to blame someone, call your congressman! I bet you none of them have foreclosed on any of their "mortgages". Most of them have at least two homes.

      October 28, 2011 at 11:04 am |
  13. Gergk

    Few Americans know that the government programs (Republican and Democrat sponsored) have no legal force. The Big banks, bailed out with US taxpayer money make every effort to water down the final laws so that they only have to offer the mortgage programs, not follow them.
    II got the Freddie/Fannie programs, found I qualified (no late, not underwater, 7% apr) and yet although the program says there is No Requalification, US Bank says they do not follow this program. So, please requalify and we will see.
    II no longer qualify, as my income no longer is what is was. So, maybe I should get a 4-5% mortgage, and the money left over would get spent in the US economy and build our future, It is captive to the same banks that should have been llet fail.
    The congress, president and the administration really do not know how it works in reality.
    IAmericans should join the Wall Street protests- they think they own Americans (not America). I am not a slave to banks.
    My next move is to default, keep the monthly payments for myself and screw the US Taxpayer (you can be sure that US Bank will get their money and collect the loan from the taxpayers)
    Do not re-elect anyone. Vote for anyone who has never held office. Vote for term limits.
    Stop paying your mortgage.

    October 24, 2011 at 12:58 pm |
  14. GRofPA

    What they fail to tell you about these programs is that if you take advantage of them, you take a big hit to your credit score – because you didn't honor the original terms of your mortgage.

    October 24, 2011 at 1:07 pm |
    • Jason H

      Cmon, man....really?? People refinance all of the time to take advantage of lower rates. It doesn't drop your credit score at all unless you miss payments. You should stop trying to spread lies.

      October 24, 2011 at 3:18 pm |
      • GRofPA

        I am not talking about refi in general, I am talking about the government-pushed HARP and Mortgage Modification programs. Believe me – I tried it – found out after jumping thru hoops to qualify that even though I never missed a payment, if I agreed to proceed with a modification it would negatively impact my credit score.

        October 24, 2011 at 3:54 pm |
  15. cj28

    OMG This is the best news for homeowners like me. We bought a home in Aug 2007for $320,000 at 7.25% interest. The home appraised at $335,000, we were lucky to refinance from 7.25 to 5.75% interest in Dec 2007 before the market crahed. Lucky we both have jobs but have both taken cuts in pay but not enough to refinance under the laws. We have tried to refinance but can't because we owe $288,000 and the taxes say it's worth $233,000. We have paid every mtg payment on time in full every month. It's about time responsible homeowners are being rewarded. Maybe this will actually stop people from loosing their homes.

    October 24, 2011 at 1:08 pm |
    • Jason H

      WOW!! Somebody that actually understands this concept and will actually benefit from it!! If I were you, I wouldn't go over to Fox News...they think you are the reason for this entire mess.

      October 24, 2011 at 3:19 pm |
      • cj28

        What a LOT of people don't remember is when the housing markets were crashing in the late 80's some states automatically lowered interest rates from 10.5% to 7% to decrease the amount of foreclosures on homes that were happening at the time. We had purchased our 1st home on a State Loan in 1983 at the ages of 20 and 22. By 1988 the interest rates were sky high and so was the price of housing. The cost of living had risen dramatically... A gallon of milk had gone from 79 cents in 1982 to $1.79 here in Utah. Even though we had made every mortgage payment timely, the State Loan Office approached us and refinanced the loan with NO closing costs! I couldn't believe it. When asked why they were doing this they told me to stop people from foreclosing and the State being stuck with homes. I know it helped us to make ends meet easier, we actually put the money back into the community by being able to buy more groceries etc...The extra money we would have left over if we can refinance would once again go back into the community, helping the stimulating the economy.

        October 28, 2011 at 10:47 am |
  16. Gordon

    I've originated mortgage loans for 26 years. The comments I read amaze me about how ignorant people are about how mortgages and real estate work. Although they have no problem making their stupid statements as if they are an expert

    October 24, 2011 at 1:08 pm |
  17. Ed

    Under the new rules a homeowner with good credit who has missed one payment in a year can still qualify as a responsible current borrower

    So how does one miss a payment and have good credit??? More smoke and mirrors…

    October 24, 2011 at 1:33 pm |
  18. ART

    Maybe he should just do like Rubber barron Romney suggested and let them be homeless that will make everything better.Rethuglicans do want to take America back back to the dark ages.

    October 24, 2011 at 1:35 pm |
  19. Gergk

    American Revolution-2011
    Apply for new SSC numbers for everyone you know.
    Apply for new CCDs using any SSC you can imagine.
    Apply immediately for Credit Protection using your imagininery SSC numbers.
    Order online from everywhere with a bogus CCD.
    Apply for your neighbors Mortgage modification.
    Apply, submit over and over and over-use a gmail, hotmail, yahoo.
    When the systems stops (and it will) then you will be a person again.
    Do your best to destroy what the Big Banks have built.
    Your Credit Score is a fiction-you can always fix it. Who benefits from the credit bureaus ratings? The people who own them (the major US Banks). So, why do you care?
    Break the banks, break the system and you will be an individual again-or maybe only your children.
    You are not better off than your parents-you are the new slave labor.

    October 24, 2011 at 1:49 pm |
  20. Jessy CA

    It's our great disapointment for President Obama. I wish he did not compete with Hillary Clinton in 2008 but just be the Vice President for her. Then he would be in VP seat for 8 years while getting some experience and then compaign for the presidency after gaining experience. Too bad, he came up to beat H. Clinton and take the presidency as show piece–the first black p. Very disapointed with his administration and non-working policy.

    October 24, 2011 at 1:56 pm |
  21. westward

    It is estimated that around 80% of Americans with mortgage loans are 'underwater'. Options: 1) we can keep going as status quo and let responsible and credit worthy people continue to repay these loans until they file for bankruptcy – thus further pushing down market values and creating more people that are underwater, or 2) we can put a few brakes on the train where these credit-worthy loan-repaying people are concerned. When you consider the overall effects of regional and national market values/equities remaining higher as opposed to sinking fast – there really is no option here.

    October 24, 2011 at 2:10 pm |
    • cj28

      Thank goodness someone understand the principal behind the idea! You don't have to be a brain surgeon to figure it out!

      October 28, 2011 at 11:09 am |
  22. Bruce

    ART, typical liberal retard. Try a new line. Especially with facts to back it up. I am so sick and tired of you morons spouting off and making moronic statements such as yours. I'd rather be a Republican any day than an ill-informed mindless idiot like you.

    October 24, 2011 at 2:19 pm |
    • Joshua Ludd

      Well, Bruce... keep in mind who has been pushing lower and lower tax rates for the wealthy for the last few decades... while wages for the non-wealthy have stayed pretty much flat, benefits have been cut, retirement plans have been raided left and right.... while profits went up.. and so did executive pay and shareholder income.

      October 24, 2011 at 2:48 pm |
  23. Dominican mama 4 Obama

    Great program Mr. President, this will deal with the reality that a lot of homeowners are facing.
    Not missing a payment, AND keeping a good credit score is a tough balancing act in households like mine where my husband was out of work for over a year. Payments are going to be late, which in turn will affect your credit score.
    There are many of us out there who were able to keep up the mortgage payments in a timely manner but were late on other payments. Or, maybe you missed a mortgage payment after years of paying on time, yet you have tons of equity in your house but can't lower your payments through a re-fi because your stellar paying history took a recent dive.
    This program is for REAL people, struggling with REAL issues.
    Thank you Mr. President.

    October 24, 2011 at 2:30 pm |
    • Dean

      You should have signed a mortgage that you could have afforded if only one person was working. You were irresponsible and now it's costing me and my family more. Thanks.

      October 24, 2011 at 2:45 pm |
  24. Joshua Ludd

    If only they had done this a couple years ago when the problem was truly severe. But now all of those folks have either already lost their homes or no longer qualify for this program.

    October 24, 2011 at 2:41 pm |
    • Jason H

      By that rationale, we have already hit bottom and no one else will lose their home...are you that blind?? Property values are still going down and unemployment rates are still high. There is still a ton of potential for more least this will try to alleviate that somewhat.

      October 24, 2011 at 3:23 pm |
  25. FLIndependent

    All I can say is at least President Obama is working to find solutions and if one thing doesn't work he isn't too proud to try something else (unike our last President). What have the Repubs come up with to help average Americans?? Haven't done one beneficial thing in the past 12 years.

    October 24, 2011 at 3:17 pm |
    • jean2009

      Twelve years...Hello! You forgot Reagan he wasn't any better.

      October 24, 2011 at 5:40 pm |
      • Dean

        ...and Carter.

        October 26, 2011 at 9:00 am |
  26. cigarman

    Romney is right about the foreclosures. Anyone who is not making there agreed upon house payments should be foreclosed on immideately and ex-peditiously. There is one thing that would help the current home owner that would be better than re-financing. After the house is foreclosed upon, make it a law that the homeowner who was foreclosed upon has the first option to purchase the foreclosed house from the bank at the price that the bank would sell it for after foreclosure. An example of this would be, Homeowner purchased house for three hundred thousand do;;ars, after foreclosure, price would typicall be one hundred fifty thousand dollars. If the foreclosed upon owner can afford payments on the one hundred fifty thousand, that would be better than re-financing.

    October 24, 2011 at 4:47 pm |
    • Steve Mc

      Yeah,... I am skeptical of trying to the beat the scumbags at their own game. Not sure I would recommend what you are saying. There willl probably be lots of fine print and in the end you may lose and then lose again. Sorry, I just believe the system tha is in place will benefit the banks and not the home owner.

      October 24, 2011 at 7:32 pm |
    • Okoro

      Loan mooificatidns under the new MAKING HOME AFFORDDABLE PROGRAM:Announced March 4, this federal program provides $75 billion in financial incentives to lenders so that they will reduce interest payments. In some cases the program allows for a reduction in principal so that the monthly payment will not exceed 31% of the borrower's income, but that reduction is only temporary. The set-aside portion of the principal will have to be repaid when the loan is paid off or refinanced or the house is sold.It's for homeowners who have experienced a significant change in income or expenses to the point that the current mortgage payment is no longer affordable, according to program guidelines. But there's an important catch: It's only for working homeowners struggling to retain homeownership. The jobless need not apply, which is a serious setback in California, with an unemployment rate that exceeds 10%.Other restrictions: Investment properties are out, as are most McMansions bought overthe last few years, because the unpaid loan balance has to be $729,750 or less to qualify. And the program applies only to loans made before Jan. 1, 2009.Finally, the program isn't mandatory. The final decision is made by the lender. But the new plan could benefit working-but-struggling borrowers who have kept payments current. Banks may not consider them for mooificatidns unless they areactually delinquent on the mortgage. The new program welcomes them to apply. Also, owners of homes that are underwater that is, the amount owed is more than the home's current value are eligible.NOTE:Any foreclosure action will be temporarily suspended during the trial period, or while borrowers are considered for alternative foreclosure prevention options. In the event that the Home Affordable Modification or alternative foreclosure prevention options fail, the foreclosure action may be resumed.

      March 2, 2012 at 5:11 am |
  27. LStein

    NOW he's going to do something about foreclosures? Of course, elections are coming up. Why do something in time to save the millions in trouble 3 years ago when no election was pending? Now he can try to do something and blame Republicans when it won't pass – whereas in 2009/10 the Democrats controlled the White House and Congress and could have done much more to help.

    October 24, 2011 at 5:46 pm |
  28. Steve Mc

    About damn time! It shows that politicians and the corrupt financial institutions have finally put their ears on and are starting to listen to the people doing Occupy Wall Steet. Good job Americans! We can make the system work. Big banks exploited their position and stuck it to the small guy, now finally we may see an opportunity for all the responsible people who pay their bills and want to keep their property but are not able to refinance because the property is below market value. Bout damn time somebody with a head on their shoulders did something for the middle class. Sheeeesh! Go Occupy Wall Street! Can´t wait to see what is next that might help the 99%.

    October 24, 2011 at 7:28 pm |
  29. ellenmsh

    My husband and I are hanging on by a thread. He is 69 years old and I am 64, both still having to work full time. Our house went from being assessed at $160.000 to$60,000. We have been told to walk away, but we making our payments but only because my husband is still working, which he shouldn;t be. He has health issues and should retire, so if we can remortage our home and keep it I am all for it.We are from the ole school, making the payments but barely. We difinately will try this so we can stay and not have to move and maybe my husband can retire. We are just ordinary blue collar folks who moved to florida to enjoy our years left, but that has turned into a nightmare trying to make ends meat and live a quality life. So much for the"Golden Years" HUH!

    October 25, 2011 at 12:32 pm |
    • Dilek

      I'm so happy you weren't hurt! That looks like rough dmagae (and completely LOL'd at your license plate blackout with sad faces!! Too funny!). I was hit by a drunk driver TWICE! Once time my car flipped three times and was clearly totaled and the other time it wasn't as bad but my car was totaled then too when a DD hits you (I have found) insurance companies are quick to get you off their back and cut you a check! Hopefully you will get your car looking brand stinkin' new in no time! Keeping my fingers crossed!AND I AM LOVING YOUR RECOMMENDATIONS! Have a very great and relaxing weekend!XOXOStephanie @ Blonde Highlights recently posted..

      March 1, 2012 at 6:51 pm |
  30. rosemarie

    Obama is only helping fannie and freddie mac loans. what about the other millions of people not owned by this banks? who is also underwater? responsible homeowners, current on their mortgage, cant refinance, he will just simply ignore us? unbelievable! very unfair!

    October 26, 2011 at 12:27 pm |
  31. Pilar

    We are in a loan with Countrywide as well and are going crazy! We were told that we were avorpped for a modification and even sent papers only to find out that they never processed the modification. We have spoken to their legal department and were told to wait to hear from them when they contacted us the lady said that they would not honor that modification and that if wre wanted to keep our house we would have to except a modification that is nothing but another sub-prime loan. Countrywide now wants us to pay $230,000 on a $195,000 loan and uped our interest rate. Our house is not even worth $150,000 now. They lied to us from the beginning and railroaded us into this terrible loan. Who protects us? How can they get away with these practices? Our only choice is bankruptcy. My husband is ill over this he is suffereing from high blood pressure and has even been in the hospital for what the doctors say may have been a very minor heart attack. This is a very healthy and responsible man. Not only am I scared to loose our home but my husband too. The stress is killing us. We were told if we tried to sue it would cost thousands and they have attorneys that are trained to delay and string it out so that we could not afford it.

    March 2, 2012 at 1:13 am |