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$75 Billion to Fight Foreclosures

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Posted on Feb 18, 2009
Bank Owned

The plan would allow millions of homeowners to refinance mortgages owned or guaranteed by government-controlled housing giants Freddie Mac and Fannie Mae.

While $700 billion was given to the banks and credit institutions that haphazardly pushed forward our current economic fiasco, millions of homeowners at risk of foreclosure may now be given only about one-tenth of that figure—$75 billion—in an effort to slow the deterioration of the housing market.

The New York Times:

Seeking to stabilize the foundering housing market, President Obama is offering a plan to help as many as nine million families refinance their mortgages or avoid foreclosure, according to a summary released by the White House on Wednesday morning.

The plan, which is more ambitious than expected, would spend $75 billion to help keep as many as four million families in their homes, and would help as many as five million more refinance their mortgages to take advantage of lower interest rates.

“The plan not only helps responsible homeowners on the verge of defaulting, but prevents neighborhoods and communities from being pulled over the edge too,” the White House said in a fact sheet.

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By SteveL, February 19, 2009 at 2:48 pm Link to this comment

If they had started with the homeowners in the first place, the problems would have started to be solved.  Give the money to the bankers and we got nothing in return.  The bad mortgage problems will continue to drag the economy down until they go away.

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By Blackspeare, February 19, 2009 at 9:39 am Link to this comment

Well, the first one on line for mortgage relief will be Octo-Mom!

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By Spiritgirl, February 18, 2009 at 4:18 pm Link to this comment

Purple Girl - I feel your pain, and wish you the best.  When did it become a crime to help the average American?  The bankers, Wall Street titans along with their Congressional enablers have done their best impersonation of Don Vito Corleone and they are getting away while the American people bleed!  Enough, enough, enough!!  These people have been given funds - supposedly to start them lending, and yet - surprise, surprise - NOT ONLY HAVE THEY NOT BEEN LENDING, BUT THEY HAVE HAD THE NERVE TO RAISE INTEREST RATES ON THEIR CREDIT CARDS & MORTGAGES!  Hello! Is anyone there!?

If these people have to renegotiate so be it (let them bite the bullet and take the loss)!  They should have been forced to renegotiate the terms long before this!  That laissez-faire let the market decide mentality needs to go the way of the dinosaur!!!

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By Spiritgirl, February 18, 2009 at 4:06 pm Link to this comment

Purple Girl, I feel your pain!  I wrote on another post, that I’m ashamed as a human being, that people don’t appear to have any empathy for the people that are going through hard economic times!  Many people want to blame the “individual”, that bought the house, but that homeowner didn’t buy that house in a vacuum!  The “individual” didn’t come up with a purchase price, or an appraisal on his/her own!  There were bankers, brokers, and appraisers involved in the process!  Americans as a whole, while working harder are bringing home less money than they did say, 10 - 15 years ago!  And even less if you compare it dollar for dollar to what people made in the 1960’s, the spending power is less!

Yes, some people were irresponsible, however, it was not the majority!  I believe that those people still in their homes should at least be allowed to have the terms and interest rates modified (and yes, in some cases - let the bank lose on the write-downs)!

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By Purple Girl, February 18, 2009 at 10:24 am Link to this comment

Predatory Mortgage practices and 700 billion Bailouts are not the only way the financial sector is screwing Americans.Nor should mortgage refinancing and tax credits be the only thing helping US. These Banking corps have been using the exact same tactics when it comes to credit card- great introductory rates (bait), then short term ‘reasonable’ rates, and then the switch to Loan shark rates- regardless of your dedication to repayment.
many Love to blame the consumer for lavish spending, yet consistently fail to state our incomes have remained stagante or have been depleted over the last 8 yrs.At the end of the ‘90’s we were a two income couple making about 70,000 a year. In ‘08, I have been unemployed and my husband has been laid off periodically throughout the yr- Taxable income for ‘08- about 40,000. No vacation in years, no luxury items bought..A new roof because the other was leaking, A new Furnance because it was more efficient and cost effective, a ‘New’used car because our daughter need our old one, along with car repairs, utilities, groceries etc. we are in a Huge credit card hole created by the continuous fall in income and ever increasing cost of Living.
Our mortgage payment is really minimal, but our credict card payments have skyrocketed not only because we have had to rely on them more, but the Corps have drastically increased the Interest rates and the min payments.
Worse yet, is that we have annuities that would cover our debts, but the Union will only release these funds for ‘hardship’- like foreclosure & medical- Not Credit card pay offs.
it Doesn’t take an Economic Guru to guess which path is that of least resistance when confronting this economic fiasco. Let the mortgage payment slide, so to avoid the Outrageous credit card default charges and as a result open up access to our retirment savings at the same time.
Have they been and are they still intentionally painting US into this corner? herding US all towards the same escape hatch?
come on now- with 2Mill+ in foreclosure and banks drowning in vacant homes- how hard do you think it will be to get another home loan in the future? yet if we default on the credit cards, not only will our score be ruined, but they will consider it proof of poor judgement and a riskier investment.Then who’s going to give Us a home loan, or a car loan, orany other loan?
funny we can grant those who bought more home they they could afford, at a ‘too good to be true’ schedule,yet those who have been hoping to ride out a slow economy on credit cards are considered morally deficit and reckless.
Only One Rep from Ca (Waters?) ventured to ask the Bank CEO’s about who had increased credit card interest rates. And Not One Poltiician has bothered to discuss these banker obligation to renegotiate these unsecured loans. I’ve tried, they don’t give a rats ass! So now they have not only picke dmy pocket (and my daughters) with a bank bailout, but are nickle and diming me to death with ever increasing interest rates. you could call it ‘Double dipping’, but I prefer to call it extortion. ya think there are some RICO laws on the books which would apply to what these guys are doing to their customers and ultimatley our nations economy-How does Economic Treason sound?

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