Chicago Sun-Times
The scoop from Washington

Obama mortgage foreclosure rescue plan will allow some struggling homeowners refinance options


WASHINGTON--President Obama unveils his mortgage foreclosure plan Wednesday in Phoenix.

Key elements:

*help some homeowners--whose property has decreased at least 15 percent--reduce monthly payments.
*make it easier to modify loans.
*keep interest rates low.
*no help for speculators.
*help homeowners before they default.

Homeowner Affordability and Stability Plan
Executive Summary

The deep contraction in the economy and in the housing market has created devastating consequences for homeowners and communities throughout the country.

• Millions of responsible families who make their monthly payments and fulfill their obligations have seen their property values fall, and are now unable to refinance at lower mortgage rates.

• Millions of workers have lost their jobs or had their hours cut back, are now struggling to stay current on their mortgage payments - with nearly 6 million households facing possible foreclosure.

• Neighborhoods are struggling, as each foreclosed home reduces nearby property values by as much as 9 percent.

The Homeowner Affordability and Stability Plan is part of the President's broad, comprehensive strategy to get the economy back on track. The plan will help up to 7 to 9 million families restructure or refinance their mortgages to avoid foreclosure. In doing so, the plan not only helps responsible homeowners on the verge of defaulting, but prevents neighborhoods and communities from being pulled over the edge too, as defaults and foreclosures contribute to falling home values, failing local businesses, and lost jobs. The key components of the Homeowner Affordability and Stability Plan are:

1. Affordability: Provide Access to Low-Cost Refinancing for Responsible Homeowners Suffering From Falling Home Prices

• Enabling Up to 4 to 5 Million Responsible Homeowners to Refinance: Mortgage rates are currently at historically low levels, providing homeowners with the opportunity to reduce their monthly payments by refinancing. But under current rules, most families who owe more than 80 percent of the value of their homes have a difficult time refinancing. Yet millions of responsible homeowners who put money down and made their mortgage payments on time have - through no fault of their own - seen the value of their homes drop low enough to make them unable to access these lower rates. As a result, the Obama Administration is announcing a new program that will help as many as 4 to 5 million responsible homeowners who took out conforming loans owned or guaranteed by Fannie Mae or Freddie Mac to refinance through those two institutions.

• Reducing Monthly Payments: For many families, a low-cost refinancing could reduce mortgage payments by thousands of dollars per year:

o Consider a family that took out a 30-year fixed rate mortgage of $207,000 with an interest rate of 6.50% on a house worth $260,000 at the time. Today, that family has about $200,000 remaining on their mortgage, but the value of that home has fallen 15 percent to $221,000 - making them ineligible for today's low interest rates that now generally require the borrower to have 20 percent home equity. Under this refinancing plan, that family could refinance to a rate near 5.16% - reducing their annual payments by over $2,300.

2. Stability: Create A $75 Billion Homeowner Stability Initiative to Reach Up to 3 to 4 Million At-Risk Homeowners

• Helping Hard-Pressed Homeowners Stay in their Homes: This initiative is intended to reach millions of responsible homeowners who are struggling to afford their mortgage payments because of the current recession, yet cannot sell their homes because prices have fallen so significantly. Millions of hard-working families have seen their mortgage payments rise to 40 or even 50 percent of their monthly income - particularly those who received subprime and exotic loans with exploding terms and hidden fees. The Homeowner Stability Initiative helps those who commit to make reasonable monthly mortgage payments to stay in their homes - providing families with security and neighborhoods with stability.

• No Aid for Speculators: This initiative will go solely to helping homeowners who commit to make payments to stay in their home - it will not aid speculators or house flippers.

• Protecting Neighborhoods: This plan will also help to stabilize home prices for all homeowners in a neighborhood. When a home goes into foreclosure, the entire neighborhood is hurt. The average homeowner could see his or her home value stabilized against declines in price by as much as $6,000 relative to what it would otherwise be absent the Homeowner Stability Initiative.

• Providing Support for Responsible Homeowners: Because loan modifications are more likely to succeed if they are made before a borrower misses a payment, the plan will include households at risk of imminent default despite being current on their mortgage payments.

• Providing Loan Modifications to Bring Monthly Payments to Sustainable Levels: The Homeowner Stability Initiative has a simple goal: reduce the amount homeowners owe per month to sustainable levels. Using money allocated under the Financial Stability Plan and the full strength of Fannie Mae and Freddie Mac, this program has several key components:

• A Shared Effort to Reduce Monthly Payments: For a sample household with payments adding up to 43 percent of his monthly income, the lender would first be responsible for bringing down interest rates so that the borrower's monthly mortgage payment is no more than 38 percent of his or her income. Next, the initiative would match further reductions in interest payments dollar-for-dollar with the lender to bring that ratio down to 31 percent. If that borrower had a $220,000 mortgage, that could mean a reduction in monthly payments by over $400. That lower interest rate must be kept in place for five years, after which it could gradually be stepped up to the conforming loan rate in place at the time of the modification. Lenders will also be able to bring down monthly payments by reducing the principal owed on the mortgage, with Treasury sharing in the costs.

• "Pay for Success" Incentives to Servicers: Servicers will receive an up-front fee of $1,000 for each eligible modification meeting guidelines established under this initiative. They will also receive "pay for success" fees - awarded monthly as long as the borrower stays current on the loan - of up to $1,000 each year for three years.

• Incentives to Help Borrowers Stay Current: To provide an extra incentive for borrowers to keep paying on time, the initiative will provide a monthly balance reduction payment that goes straight towards reducing the principal balance of the mortgage loan. As long as a borrower stays current on his or her loan, he or she can get up to $1,000 each year for five years.

• Reaching Borrowers Early: To keep lenders focused on reaching borrowers who are trying their best to stay current on their mortgages, an incentive payment of $500 will be paid to servicers, and an incentive payment of $1,500 will be paid to mortgage holders, if they modify at-risk loans before the borrower falls behind.

• Home Price Decline Reserve Payments: To encourage lenders to modify more mortgages and enable more families to keep their homes, the Administration -- together with the FDIC -- has developed an innovative partial guarantee initiative. The insurance fund - to be created by the Treasury Department at a size of up to $10 billion - will be designed to discourage lenders from opting to foreclose on mortgages that could be viable now out of fear that home prices will fall even further later on. Holders of mortgages modified under the program would be provided with an additional insurance payment on each modified loan, linked to declines in the home price index.

• Institute Clear and Consistent Guidelines for Loan Modifications: Treasury will develop uniform guidance for loan modifications across the mortgage industry, working closely with the bank agencies and building on the FDIC's pioneering work. The Guidelines will be used for the Administration's new foreclosure prevention plan. Moreover, all financial institutions receiving Financial Stability Plan financial assistance going forward will be required to implement loan modification plans consistent with Treasury Guidance. Fannie Mae and Freddie Mac will use these guidelines for loans that they own or guarantee, and the Administration will work with regulators and other federal and state agencies to implement these guidelines across the entire mortgage market. The agencies will seek to apply these guidelines when permissible and appropriate to all loans owned or guaranteed by the federal government, including those owned or guaranteed by Ginnie Mae, the Federal Housing Administration, Treasury, the Federal Reserve, the FDIC, Veterans' Affairs and the Department of Agriculture.

• Other Comprehensive Measures to Reduce Foreclosure and Strengthen Communities

• Require Strong Oversight, Reporting and Quarterly Meetings with Treasury, the FDIC, the Federal Reserve and HUD to Monitor Performance

• Allow Judicial Modifications of Home Mortgages During Bankruptcy for Borrowers Who Have Run Out of Options

• Provide $1.5 Billion in Relocation and Other Forms of Assistance to Renters Displaced by Foreclosure and $2 Billion in Neighborhood Stabilization Funds

• Improve the Flexibility of Hope for Homeowners and Other FHA Programs to Modify and Refinance At-Risk Borrowers

3. Supporting Low Mortgage Rates By Strengthening Confidence in Fannie Mae and Freddie Mac:

• Ensuring Strength and Security of the Mortgage Market: Today, using funds already authorized in 2008 by Congress for this purpose, the Treasury Department is increasing its funding commitment to Fannie Mae and Freddie Mac to ensure the strength and security of the mortgage market and to help maintain mortgage affordability.

o Provide Forward-Looking Confidence: The increased funding will enable Fannie Mae and Freddie Mac to carry out ambitious efforts to ensure mortgage affordability for responsible homeowners, and provide forward-looking confidence in the mortgage market.

o Treasury is increasing its Preferred Stock Purchase Agreements to $200 billion each from their original level of $100 billion each.

• Promoting Stability and Liquidity: In addition, the Treasury Department will continue to purchase Fannie Mae and Freddie Mac mortgage-backed securities to promote stability and liquidity in the marketplace.

• Increasing The Size of Mortgage Portfolios: To ensure that Fannie Mae and Freddie Mac can continue to provide assistance in addressing problems in the housing market, Treasury will also be increasing the size of the GSEs' retained mortgage portfolios allowed under the agreements - by $50 billion to $900 billion - along with corresponding increases in the allowable debt outstanding.

• Support State Housing Finance Agencies: The Administration will work with Fannie Mae and Freddie Mac to support state housing finance agencies in serving homebuyers.

• No EESA or Financial Stability Plan Money: The $200 billion in funding commitments are being made under the Housing and Economic Recovery Act and do not use any money from the Financial Stability Plan or Emergency Economic Stabilization Act/TARP.


Far too many incentives for lenders and rather than incentivize them to help home owners, they may get greedy chasing incentive bonuses.

Do you know if any of these measures help those of us with Jumbo Mortgages? Example, I bought my home for $800K. I put $200K down. I now owe $580K but the home is only worth $550K. What about me?

Are you responsible for your neighbor’s bad decisions?

Obama and Congress appear to think so.


Who can I call or who do I ask about this program?
Please respond with where I can apply or get information to apply!

Does this help me if foreclosure has already taken effect? We are occupying the home and we have 3 more months to stay. We want to save the home. We have jobs now. Will Obamas plan help us or is there an alternative for me?

Very very limited help for distressed homes with huge value declines. Example: My home valued at $250000 in December of 2008 is now at $204000. I have an exotic loan, have made payments on time fot 4 years and expect to be a statistic by next year when the mortgage must refinance at a levell much higher bthan even the $250000. So much for helping those truly in trouble with the mortgage. I will pursue other alternatives, Obama and staff do not have a clue.

What about refinance help for 2nd mortgages?

I am in forebarance (spelling?) but I have made the last 3 mortgage payments on time as agreed. Now the remainder of my past due mortgage could be added to the back of my loan. However, I can barely afford my mortgage and saving 400 a month by changing the interest rate would make all the difference in the world to me. I have a FHA loan. Do I speak to Wells Fargo, who I have my mortgage through to help and do I qualify for a lower interest rate. THank you

we are now facing forclosure in our home , my soon to be husband had fallen extremely ill since October 16,08 and has now just been able to get back to work but at that time this had left us with one paycheck and with the expense of travle back and forth to doctors and hospitals we were unable to pay our mortgage along with other things. Its time that people in general who are trying to make a life for themselves and run into hard times should get a break , giving banks more money too waste just doesn't make sense. and people who are up with there payments already don't need the help it is the people who have fallen on there faces that need the help. there should be a freeze on all forclosures at this time and audit on all banks and lenders involved and because the economy is in such poor shape ALL loans that are behind should be set back to the end of the loan. this gives people a chance to restart as long as both are working. It is time to quit listening to the upper esholon of congress and house and start listening too just us plain hard working americans who not only help place you in office but also pay your salaries with our taxes. Tax breaks are also fine and dandy but I already did mine and to me it would mean that I would have wait another year for what little I we could possibly get out of this. Seems like to me These guys keep getting fatter and were are slowly shrinking away. how many people have to go homeless before America and the people open there eyes. thankyou for listening

Start talking to them right now!

Will this plan help me? I'm already in foreclosure.

When is this effective? When can we talk to our banks?

Most houses fell more than 5-15%.....I have been trying to get my mortgage holder to consider a modification for 4 months.

The irresponsibility and greed that abounds in America right now is astounding.

From companies using tax payer money to pay huge fat bonuses to the actions of the Government passing a stimulus bill loaded with pork to irresponsible banks making idiotic loans to consumers buying houses far more expensive than they are able to afford (if they could afford a house at all).

What happened to the American Dream? The chance for people to sink or swim on the merit of their own efforts is what American Dream used to be . . .

Is the American Dream now to borrow more than you can pay or make other stupid financial decisions and then whine till the government fixes the problem by spending money it doesn't have?

These freeloading companies and individuals are profiting off the backs of those who have to work minimum wage jobs to pay rent every month.

Taxpayers everywhere should be outraged that the government is making it possible for people to avoid the consequences of their greed.

Dan Decker

Re. James Raider's question, "Are you responsible for your neighbor’s bad decisions?"

James, are we responsible for bailing out car companies so they can sell cars to us? Are we responsible for bailing out banks and cc companies so they can continue to gouge us on interest and fees?

Your question begs sarcasm. You and I both helped keep companies afloat so they can continue to charge us. We're paying for everything twice that way. When it comes to bailouts, why bail out a company so they can profit from us? If I helped to bail out Chrysler and GM, I want my free car, not to be sold one at a stupid high price. If I bail out CITI, I want my cc balance reduced and 22% rate cut down to 8%.

Yes the economy is bad and people are hurting. But what ever happened to personal responsibility? There are many more groups of people who could use help - where will it end?

I am upside down and is on a balloon loan and need some advice how to go about this. I have never been late on a payment for over 2 years now.

No Plan is perfect, however, this is an excellent step. Not everyone will be pleased, however, that is to be expected. We are in a full court press financial emergency the likes of which we have never experienced before. Forget 81/82 there is no comparison. In all probability we are six months out before the realization becomes clear and denial is overtaken by the reality that we have entered into a 21st Century World-Wide Depression. So anything we can do to alleviate the intensity of pain is welcome, but pain nevertheless is upon us.

Mortgage rates should be reduced to 3% for all people not delinquent on their mortgages. This would immediatly reduce the monthly obligations of millions of home owners.

What would we do with this money?
1. Continue paying our monthly payments unchanged. Reducing our principle and (putting money in the hands of the banks).

2. Set money asside for a rainy day (putting money in the hands of the banks).

3. Spend the money on the things we need but can't currently afford, injecting huge amounts of money into the economy and after making it's way through the system it ends up in (the hands of the banks).

All this money in the hands of the banks allows them to lend, collecting interest and making money.

The other option is the current snowball effect. People default, the economy suffers, more of us lose jobs, more of us defualt leaving more and more foreclosed homes in the hands of the banks which they can't get rid of.

This would be a stimulus that would have immediate impact and be felt positively throughout the entire system.

Banks thinking this plan would not be effective need not spend their hard swindled money flying to Washington looking for a handout!

Wells Fargo is the Worst.
I have excellent credit low debt ratio and tried to do the three step refinance to lower my rate. They did a drive by appraisal and told me my house was at 82.1 and it needed to be 80% so I was denied. I put $92,000 down on my house two years ago and nearly $100,00 in remodeling. The stupid thing is I have the loan with them already and I am not taking money out. I even offered to pay my principal down to be at the 80% because the refi. was free with them otherwise I waste that money on closing fees at another bank. I think they just didn't want to to lower my rate because I am a customer that is making my payment.
This is a joke! Banks need to try to help those of us that are trying to be responsible and stay ahead of the game.

Solid start on the part of the Obama administration.
Still unclear how this will help those whose loans are not backed by FHA, Fannie or Freddie. And what pressure will they put on the banks to fall in line?

i need help now. how do i get started?

I lived through the depression of 1986. In the part of the country I live in entire neighborhoods were abandoned and shopping malls became ghost towns.Houses burned to collect insurance and many families moves and walked away from their mortgages our neighborhoods were devastated. I learned from those days that those who stayed and hung on to their houses were far ahead of those who walked away. Many banks went bankrupt too. The banks that survived were better off in the long run also. I personally knew people who renegotiated their loans with private parties. Which is why I am concerned about that portion of Obamas plan that is receiving very little attention but has the potential to have the most long reaching ramifications that is allowing bankruptcy judges to reduce mortgage principal. This will squash private lending which is often the loan of last resort for seasonal and young workers. We will in essence be nationalizing our lending system.I know many young families, myself included who could have never owned a home which became our stepping stone to a better life, without a private party that gave us a owner financed loan. Who will want to write those loans once a judge can wipe out the principal. Do not misunderstand me I have the greatest sympathy for folks who have watched their home values drop, I was there once too, but in the end the housing market came back and so did the neighborhood because of those of us that stayed and worked hard.

Provide 40 year loans at 4% which will alllow more home owners and home purchasers to aford their monthly mortgage.

I am not yet in foreclosure but have reduced working hours and my home value has depreciated drastically. I know that calling "customer service" (at Countrywide) is not effective. What department should I contact at Countrywide in order to start an application for loan modification. If anyone knows , pls. help. Tks.

Many interesting comments and points of view on here already.

I am very frustrated and upset. Those of us who played the game by the rules are the ones who should be benefiting from any stimulus plan. We (husband and I) purchased a house we could afford. We make our mortgage payment on time every month. But, because I am "responsible" and have a jumbo mortgage loan, I will probably not be able to qualify for any of the purposed programs.

I have only lived in the home for under 3 years and (like almost everyone) have watched my home value drop 25- 30%. I currently owe (like almost everyone) more than what is worth.

I am frustrated because all the people who tried to cheat at the game called "Let Me Own a Home" (where they were making $60k/yr and decided to buy a $750k house because some stupid loaning institution told them they could afford it) are the same ones who will benefit from this.

And please don't misunderstand my intense anger at the underwriters who looked at any individual who really didn't qualify for an appropriate loan, but approved them anyways.

So, here I sit watching my value go down, watching my house go upside down, and watching all the hand outs go to the irresponsible Americans (I am only referring to those who purchased a house well outside their means- not those who had a change in job status and now can't afford their payment or those with other life issues (i.e.medical problems) who now can't afford payment).

What further steams me is that I spent hours on the phone with my lending institution discussing a refinance +/or modification to my loan. Before I found out that I officially didn't qualify, I found it appalling that the lending institutions were still going to charge a bunch of junk fees and roll them into the loan. So basically, not only were they greedy initially and approved people that really did not qualify for a loan, but now under this financial crisis, they still want to gouge. Are they kidding???

Russ L
I am with you. I am making all my payments on time and I was just saying the same thing. If my rate was dropped I would have more money at the end of every month to put back into the economy. (And I would)

I agree with Russ L

Don't be afraid to call your bank and push for a modification. I was successful last May. It takes alot of calling and effort, but so worth it. My bank reduced the rates on my 1st and 2nd to rediculously low rates! They forgave some of the principal was well. It reduced my payments by $1200 a month. I am way upside down and have never fallen behind on payments in the three years I have owned. Do your research and don't listen to the doom and goomers....everyone said I couldn't do it and I proved them wrong. Their are so many advocacy groups out there now too if you don't have the gumption to do it yourself.


Russ L. I completely agree!!!

The banks are the problem. Receiving money from OUR government, hoarding it, and utilizing it to make unaccountable acquisitions, then looking for additional bailout funds due to these poor acquisitions.

The rates that they charge for the money they make accessible to the people is nowhere in line with the generous rate that the government has extended to them.

We need to create a 3% gap/spread that the banks must charge for borrowed funds, regardless of FICO credit scores. This is a failed system that is meant to keep the average American in perpetual debt while the banks collect anywhere from 2 to 3 times the amount of money that was lent in the first place, and in some cases even more.
Increasing the minimum payment rewards the banks and does nothing for the person in debt. A reduction in the rate with an increase of the minimum payment makes all the difference in the world. The logic of charging a higher rate for someone who has “Poor” credit is an excuse to make more money. Otherwise, why even bother lending the money if it’s considered a risk.

A 3-point spread would be more than sufficient for the banks. The government gives the banks the money at 1%, they in turn give it to the people at 4%, for all borrowed funds regardless of secured or unsecured funds. All of the current financial products can still exist, however the banks would have to provide these funds at a set universal rate, and the only changing factor would be the length of the terms. The banks like any other business would need to control their expenses and expansion plans and work within their profit margins. The banks would have to put a stop to the greedy increase of rates and reduction of interest paid to the public to cover their unnecessary overhead.

A universal fixed rate would stimulate the economy and allow the people to reduce their debt and to truly own their homes. The banks would still have control on the amount they extend based on means. This would propel a scale of economies based on earnings and would truly allow people to live within their means, while providing the same financial benefits to everyone.

My Husband & I purchased our first home last January 2008 (that made ineligible for the 1st time home buyer program). We bought our house for $399,999, zero down payment, 30 years fixed @ 6.50 interest rate.

Our house is only worth $260,000 at least right now. Most of our neighbors are going through foreclosure (salinas, ca 93906). We called our bank to see if we can moodify our loan since the price of our house went down drastically... but they told us that they can't modify our loan since we are current with our mortgage... they advised us to not to pay for our mortgage for at least 3 months and then they can help us... duh! WHY IN THE WORLD WE WOULD DO THAT?

We pay our mortgages on time, we're being responsible with all other payments such as cars, credit cards, utilities etc etc...

Both of us still have a job (thank god!) but our ceo annouced that there will be no pay raise and promotions this year. We both work 2 jobs, my husband is also a full time student. Ahhh, its hard but we try to be responsible.

I'm actually losing hope now... It's like so unfair, that no one is bailing us out. Most of the IRRESPONSIBLE people is actually benefiting from the program which SUCKS!

Does this help the people who have CountryWide as there lender? They are not working with anyone...

I think every America qualifies for this because homes have dropped in value everywhere.

"Millions of responsible families who make their monthly payments and fulfill their obligations have seen their property values fall, and are now unable to refinance at lower mortgage rates."
Can someone please tell me what the paper
value of your home has to do with your making
your mortgage payment? Too Bad! So you over
paid for your house - that's life. You're still
making the same payment. And why should anyone
be concerned about your refinancing? There are
millions of people who can't refinance? And
to add further insult - not only are we going
to assist the greedy, gambling morons who took
out the arm because 5.25% was just not low enough, now we're going to give them $1000 a year
if they continue to make payments! So I'd like to know how much I'm getting for making my 30 yr. conforming, fixed payment on time for 8 years?
And while you're at it, I lost some money in the stock market last year and I know it was a "gamble" but I'd sure like someone to pick up the pieces for me because "it's just not my fault." Love to talk longer, but my BMW is running and I've got to get the kids from private school.

Is there any help for us? we borrowered every dime in our home equity in 2006. to use as a down payment on a business that we have operated for 12 years. by 2007 the economy in our town "bottomed out" the business is going under and so is our home. we are in double jeoperdy. our bank will only refinance us with a huge interest rate. help us please.

Russ L - which bank serviced your loan?

We too are current but struggling. Been paying almost 4 years. Our house is worth $100,000 less than we owe. Never missed a opayment, never been late, but Wells Fargo was unwilling to help. Our interest rate is 5.5%. I would lile to see some help: prinicpal modified, interest rate modified, or best case - both modified. Any advice

As I mentioned earlier Wells Fargo is the Worst!
They just want to get their bail out money to send their Employees to Vegas and Party.
It is to bad they treat good and loyal customers the way they do. I am grateful that I do have a job and can make my payment but it would sure be nice if W.F. would try to help people. Especially when they have excellent credit and still have a job. Not to mention that they already have our loan so their risk is the same.
It is these same banks and appraisers that caused this problem to start with. Now they want the Gov. to pay them to help people make them rich again.

i just refinance about 6 months or more last year but my payments are very high for me and 31% sounds very good. Can i still refinance under this rescue plan and how do i? do i just call my own morgtgage comp?

Let me get this straight.I WAS a successful 48 year old salesman who recently lost his job due to government forcing banks to loan to people who had no ability to pay the loans back, which resulted in the longest and deepest recession since the Great Depression. I am still paying my bills, and still have equity in my house (yes, I was one of those responsible fools), but cannot find a job in this economy, and very soon may be forced to either sell my house if I can, or go into forclosure (can''t refinance the house and get equity if you don''t have a job). So, Obama wants to give the same fools that borrowed beyond their means a huge HELPING HAND to stay in their homes, but for people like me, who are the true victims, we get no help at all. About sum it up? Anyone want to join me in the bathroom to vomit?

For 12 years I ran my own very successful business. I put 200K cash into my home 10 years ago. I owe 85K on my home. Last year my business died due to the economic downturn,3 years ago a heart attack victim driving a motorhome hit me head on and totalled my car and me, a year later I had another unfortunate accident which was not my fault either and in the end, ended up in the hospital with pneumonia. NONE of these accidents were my fault but life happens. I had no health insurance being self-employed $800 a month was way too much for me to afford. These accidents drained my substantial savings, my ability to work. I have had my house listed for sale at 650k, then 600K, then 550K then 499K then 450K and now $399K...tons of lookie loos and NObody can get a loan?! I am at a job making 11 dollars an hour and thank God I have that, and that the repairs to my right side and leg were only a 100K and I can walk now so I can work. Some things are out of our control. I just want the bank to rewrite my loan from a 15 yr fixed accelerated to a 30 yr fixed,but my credit score now sucks and I'm at a job that places me in the lowest of wage earners and can't find another higher paying one. I'm in a box I can't get out of and I'm running out of air soon to be another statistic in the tragic economy.

I am frustrated by some of the short-sidedness of the comments above. I understand that there are those that bought too big or are upset about the drop in home value, but this program will hopefully also help people like me. My husband and I bought a house almost 3 years ago... it was a house well within our means (only $160,000). We got a fixed rate 30 year loan with a great interest rate.

My husband has now been laid off for almost a year. He has collected unemployment only when necessary, worked temp jobs when available, and does everything he can to find a job. I work full-time. We have 2 small children and we have managed to stay current on our mortgage and all bills for the past 12 months. We can't do it anymore and our bank wont help until we default.

So forgive me if I am happy for a government that is willing to help someone like me out for a change.

Laura N, you were stupid to make buy the house in the first place.

I am a home owner that owns a 3 family home. I have tenents that have lost their jobs and could not afford to keep the apartment. So the apartment became vacant and stayed empty for a couple of months. That caused me to fall behind in my mortgage payments. In order for me to pay my mortgage I need tenents to pay their rent will this foreclosure plan help me. I played by the rules and I am a responsible person. Is this new plan only for owners that live in the home. I fill that I will be punished for just trying to plan for my future. I am a 46 year old mom that does have a retirement plan I don't want to end on welfare when I retire.

The absurdity of the slippery slope that has been entered onto with the rewarding of greed and bad judgment is almost laughable.

It is one thing to be angry to be forced into paying your irresponsible neighbors mortgage, but the reality of the outcome of this slippery slope is devastating.

Just as no one in congress read the stimulus bill before they voted on it, those who put together and voted for the US Welfare Mortgage Program, have no understanding of the dynamics they have put in motion.

GoTo for a macro view of the disastrous slide ahead because of this poorly thought out legislation.

Stabilizing the banks. The market price of the houses will have a floor and the folks who now can't make their mtg payments will being giving 31% of their income to the banks balance sheet. If the values stop falling more people will be able to refinance

To save the economy we have to save the banks

Why not an across the board mortgage rate cut to 4% or less for EVERYONE?
We bought our home in 2001 (using only my income on the loan app to ensure that we could afford it) and now 8 yrs later we have 2 small children, my wife's job no longer exists, & I was forced to take a pay and hrs cut in order to keep my job YET we still pay our mortgage on time 100% b/c we live on a strict budget. We are responsible.
For people who are still lucky enough to have jobs and who have been paying their mortgages responsibly, an across the board cut in the mortgage rate to 4% or less would allow hundreds of extra dollars per month become reliably available. That money would help pay for rising food, home heating, education, and healthcare costs, and would actually allow people to BUY stuff. Ya know… stuff in stores, restaurants, and car lots, which would help our economy to move again by allowing consumers to CONSUME.
Renters would be able to take advantage of the new lower rates and perhaps buy their 1st home. God knows the market is flooded with plenty of empty homes for them to choose from.
And how would an across the board mortgage rate cut hurt the wealthy??? It would NOT.
Their mortgage rate would go down as well on their primary home, and if they wanted, they could perhaps buy a second or third home and even rent them out if they wanted while enjoying the new low mortgage rates.
It is a win/win situation for everybody. If we taxpayers have to bail out the banks with our hard earned money that is rapidly becoming scarce, the least the banks can do is cut our mortgage rates. Why do they get a free ride and we responsible homeowners and taxpayers get ZERO??

The President has released his plan to improve the economy. As usual it is complicated and does not reflect the real world. Please read the enclosed copy of the telegram I sent him on 2-15-09. I do not believe he has read it yet, since he has been out of the White House for the last 3 days. I need yours and the banking industries support to have my Alternative Stimulus Plan enacted. Please read it and have it analyzed. Your opinion and help would be greatly appreciated. The Alternative Stimulus Plan is much simpler and I believe it to be more helpful to solving the banking industries problems of falling collateral prices and economic contraction.

My name is Leonard C. Tekaat. I am a retired Economic Analyst, Financier, Businessman, investor, author and former candidate for California Congress. I have over forty years in the financial and business world. For 28yrs I have been saying that there is a major flaw in our economic policies. The currant economic crisis could have been prevented if the changes I have been proposing would have been enacted 28yrs ago. That is not to say that we cannot correct the currant crisis. I would like to share a copy of a telegram I sent to President Obama and Treasurer Geithner.


To President Obama and Treasurer Geithner:

There is a major flaw in our economic theories. I want you to ask yourself three questions. 1.What is the first thing the Fed does to stimulate the economy? answer: Lower interest rates, this permits people and businesses to refinance their debt at a lower rate of interest, which in turn lowers their monthly payments, freeing up monthly income, which increases their disposable income. 2.Why did it not work this time? answer: Collateral prices were going down; banks or investors cannot refinance people’s loans, until the price of the collateral stabilizes. 3.How do we solve this problem? answer: We have the US Treasury, which is a not for profit organization, borrow the money from the Fed, just like the banks do and fund the refinanced mortgages, at near cost, until the collateral’s price stops decreasing. The Treasury would receive the cash flow and turn around and fund more mortgages, just like the banks do. When the economy is up and running again the Treasury would sell the mortgages to investors. The bank and the other financial institutions would arrange these new loans and mortgages or modification agreements. It has always been the 90% of the population who spend their money and pay their bills that brings the economy out of the recession. More details at www.American Read articles and comments by "happyashell" Sincerely, Leonard C. Tekaat author Inflation the Economy Killer

News Release

Economic Committee Petitions U.S. Congress

The Committee for Economic Reform and a Better Economic Future petitioned the U.S. Congress today to hold open meetings to discuss and debate their Alternative Economic Stimulus Plan. Chairman Leonard C. Tekaat states the economic stimulus plan does not rely on a trillion dollar Jobs Program. In fact Mr.Tekaat
states the stimulus plan they are proposing will not cost the American people anything over time. He said, “ Their plan relies on a few policy changes to lower mortgage rates by 2 to 3%, which will reduce most people’s monthly mortgage payments by 50% when they refinance their mortgages. There-by increasing their disposal income an average by $700.00 per month! That’s like receiving a stimulus check every month for 30yrs. With safe guards included in the plan the chance of another housing bubble is nil." He said, "Their stimulus plan also includes a policy that will help those homeowners that owe more on their mortgages than what the house will sell for.”
For more information go to www.American articles and comments by happyashell
Sincerely, Leonard C. Tekaat

You buy a car , no matter the intial cost , drive it off the lot and it revalues to less that what you bought it for , the same with a house. You buy your American deam and it devalues for all kinds of reasons. Planning is the stage your in till you have deed in hand including a layoff or two. Tho Obama man may come to your resue , what happens 4 months down the road and it happens again. BTW our great president is raising taxes again.

There are several of you out there who sound very bitter and accusatory over the people who really need this package. I can assure you, bad situations were not always bad. Two years ago my husband and I made almost 100,000. Then he got laid off and I got cancer and I got laid off and our medical coverage went away. We are not sit at home bum's waiting for our hand outs. We are working our behinds off to get back to where we were before the bank takes our home. SO maybe you shouldn't be so quick to judge.


The value of our homes has been the backbone of our money supply(credit). If you presently owe more than your home is worth the vultures are circling. The bankers and investors servicing your loan want you to make payments on a loan that you cannot afford. The vultures are waiting until you default on your loan, so they can pick your bones clean.

The housing bubble has burst and prices are coming down. This has led to federal action to stabilize and re-inflate the housing market. The government (your representatives in Washington) should change the tax policy for bank business losses, so banks are motivated to lower the principle balance of your loan. The lose that banks and servicing companies take when they mark down the value of an asset(your mortgage)should not be allowed until the banks past the lost to you by lowering the principal balance of your mortgage.

We should support President Obama as he lowers interest rates and pays banks one-half of the amount that is forgiven on each home loan. The home-buyers, our elected representatives, the investors, the bankers, we all have equal responsibility for this economic crisis. We must all understand this business fact; that until the excess amount of the mortgage is forgiven, in some manner, the real-estate market and the economy will not recover. The economy will remain in recession and could move into a depression. The foreclosed properties are selling because the loan amount to buy the house is equal to the value of the home. 75% of the sales of forclosed homes are being purchased by investors. We must make the vultures go away by changing the policies our economy is guided by which will in turn stimulate the economy. Info. search articles and comments by happyashell. President Obama fax 202-456-2461


Bakersfield has seen home values decrease more than other parts of the country. There are 3 things that must be done to maintain the price of your home.

1.Enact the Zero Inflation Taxation policy. This policy will increase confidence of investors to make long-term money investments, creating a market for 30yr mortgages. It will automatically change the income tax, as economic conditions change in our economy, from recession to the inflation cycle.

2.Create mortgages that have interest rates that are no more than 300 percent above the Consumer Price Index. Maintain mortgage interest rates with Adjustable Rate Mortgages at no more than 50 to 100% above the C.P.I. Have the U.S. Treasury fund these mortgages, at cost, until the banks lower their mortgage rates and investors start investing in mortgages. This would stimulate the economy. By decreasing mortgage rates by 50%, mortgage payments would decrease. A $1500.00 monthly interest mortgage payment would decrease to $750.00. That is a $750.00 stimulus check every month for 30 yrs. Nov.’s 08 C.P.I. was a negative 1.9%. A 3% starting mortgage rate would be 490% above the deflation rate. This policy will make housing affordable. It will bring more buyers into the market and eliminate the foreclosure problem. With safe guards included, the chance of another housing bubble occurring is practically nil.

When the economy is correctly guided it will produce more tax revenues for state and local governments without raising taxes, as the California Congress has done. The tax increases can then be eliminated.

3.Calif. residents Call! Sen. B Boxer, 202-224-3553 Sen. D. Feistein 202-224-3841 Rep. J. Costa 661-869-1620 Rep. K. McCarthy President Obama 202-456-1111 Fax 202-456-2461 Treasurer Tim Geithner Fax 202-622-2000 Opinions? Contact Congress

The last four letters in American are I CAN. We can do this together and as a nation of free people. We are responsible for the laws and policies our economy is guided by.

More Free Info. search articles/comments by “happyashell”

Why do so many people gripe about a president that's been in office for a month? If you got in a bad loan you can't afford, then fess up. It's your fault. There's plenty of us that new what we could afford and didn't live beyond our means.

So much of this is typical American "entitlement" attitude. I am all for helping people. But say thank you, don't complain if the government isn't paying your mortgage. It didn't pay mine and never will...but then again, I can do simple math.

Paying on time and playing by the rules puts one at a disadvantage. After a few failed attempts at requesting a refi thru my current lender - I was told that help is for the "truly needy" IE people that have stopped making payments - I have determined that I should stop making my mortgage payment and give the house to the bank, I have heard that banks are so swamped with forclosures that I may be able to go about 6 months OR MORE before they actually kick me out of my house!! Where is my incentive to pay?! All I want is a better rate, a FIXED rate - and a lower payment - even if that means a 40 year mortgage- no one in congress cares to listen, they would rather give the mortgage holder free money to ignore me, a responsible bill payer, and favor those that should not have gotten a loan to begin with!!

I would like to know where I need to start to see if I get my loan into a fixed(lower) rate mortgage.My interest has started to go down but I'm sure it will start to go back up someday

I have a FHA loan and loss my job last month and am struggling to make my mortgage payments. Like others, my loan is financed through Wells Fargo and they offer no reasonable assistance. It seems as though, if you are current on your loan, you can't get any help. I am trying to be proactive and prevent any future defaults. Will this new financial stability plan help me in light of my job loss?

this is a good way to start,we are all waiting to cope up,though we are aware that everybody is affected by global economic crisis.

Good to know I'll be paying for the deadbeats when I don't own a home myself. Singles renters... what about us?

The question is that will this plan be enough or just delay the inevitable by 6 months. I fear this plan may not still be enough, but for those who qualify it is a great opportunity.

I have an FHA loan and it is serviced by an independent bank - I guess that is how it works. We bought responsibly - a modest home AFTER the fall in mortgages and the subprime loan bubble exploded. We waited because I did not want to get caught up in the obvious problem. I could see that there was no way we could keep up with the high payments that would come and there was no guarantee that anyone could refi into a fixed rate from a variable rate mortgage and everyone who took those loans were lying to themselves in order to get something. But after we took possession of our home, we lost a lot of money that was invested as we are retired and have to live off our investments. Now, we cannot afford our mortgage and hope to be able to get in line for this program - but I read today on the HUD website that this program is for Fannie Mae and Freddie Mac mortgages only!!! This is really unfair! I can't believe that Obama is going to limit this program to the worst offenders after sounding so even handed in his pronouncements. If this is how it will be, I don't think it will work and it looks like the banks are not dealing honestly with the entire business anyway. I guess the lousy cheats in the world will always win. But I don't think that all the cheated are going to take it forever.

I have owned my home for 13 yr.s and am in foreclosure. Citi Mortgage does NOT call or return calls when I leave messages. the have a sale date w/o notifying me and state they aren't obligated to inform me. I submitted down payments and returned documents for modification twice with no result after being informed by bank that I qualify. I have same job for 14yrs . and can now afford pmts but they won't work with me! taxpayers (like me) have right to be upset that we bailed out a bank that is in default of their own policies

I did not blam any body just I blam Walls Street criminal (Ceo) they are like to see American people suffering and they are loughing at them this only one must take jail time from this fraud.

poor stay poor rich get more richer poor go to jail rich only take house arrest this is joke isn't.

What I am wondering is if the plan is going to insist that mortgage holders exhaust all of any of their savings, holdings, retirement $$, whatever, before they can qualify for help. If you are in foreclosure and you have 500K in an IRA, are they going to bail you out? I lost my job and been working for myself since then, and have taken money out of my house equity, all money out of my retirement accounts and my mom has been helping me too, so I am current at this time. But I have not been making enough money to make the payment by way of "income".

How are they going to determine if someone was "unresponsible" in getting a no-doc loan??? Many self-employed people get stated or no-doc loans, but still are able to make their payments, even thought their tax returns don't often reflect sufficient income to satisfy the debt-to-income ration that was necessary to get a loan that is not stated-income or no-doc.

They say that they will make payments come down to 38% of someones income, but not by more than 2%. That is still going to leave many people unable to pay. What's the point if you have an adjustable loan that has kicked up to something ridiculous such as 8 or 9%, and it will only come down to 6% and you still cannot affor that if you have lost your job?

It all sounds like more trouble than it would be worth for someone like me who is self employed to try to get help. :(

Is there any provision to force banks other than Freddy & Fannie to help people? We financed with Wells Fargo. BIG mistake! Due to the economic downturn caused in part by the horrible judgement banks used in over-leveraging assets I am out of work, leaving us with my wife's income only. Wells Fargo has been downright rude to us and is not not willing to work with us at all. Since they were given a $25 billion bailout with the unmistakable expectations that they would help homeowners in our situation but instead used that cash to buy Wachovia, shouldn't they be penalised and be forced to help? Our interest rate is 8.17% and our payment is $1,422 per month, which we just can't make right now. We owe 85.3% of the current (reduced) value of our home. HELP!!!

The crooks (Wall Street, shady mortgage brokers) left the bait for naive and greedy consumers who wanted to fulfill the chance at the American Dream - home ownership. The dreamers took the bait and ignored the not so fine print that stated what would happen in 5 years when their fixed rates expired. - Yes people - basic math. The people willing to ask the hard questions and do the proper math who are making the payments they knew they'd have to because they were realistic, are now getting %$#(_%*. Level the playing field, give everyone a lower rate, have the egregious CEOS et al who were making multi-million dollar bonuses and using overly aggressive sales tactics and had a house in the Hamptons et al et al ...Make the scheisters work for a few years for grats, live in modest condos and volunteer for Habitat for Humanity until the tornado they helped to create has blown over!

I and several of my friends are in the same boat other responsible people. The comments that have been made about just wanting a lower interest. Lenders notwilling to do it. So fall at least 3 months behind to get help. There are going to be some people who will do that just to get some help. I hope the administration has a plan to mandate all banks lower interst rates for the responsible. I would like to kno who the consumer advocacy groups are that helped. Can I get more information please. Help if you can. Thanks.

Like everyone else I am also having financial problems, since my husband lost his job in Aug. 2007. I have a home that is in default for two months now and I have two small children. I heard about the Obama Rescue Plan and would like some information as to where I can go to start my process to see if I am eligible for the plan. Someone please get back to me. I am truly despret. Thank you.

I like to speak to someone about getting another loan into a lower interest cause when I took out the first loan my interest rate was high and I am barely making my mortgage payments so If someone could back with me I would appriciat it very much. If you need to contact me by phone my cell number is 859 547-9566


We are live in California, in buy our home in 1997 we pay 57,000.00.(660.00 thru 700.00)
we have 11 year in this house,in 2006 I lost my businnes of dealer cars used, my wife she work self of cleaner house now the mortgage is 210,000.00 the payment rihgt now is 1,735.00.
I stare other job the driver a towing truck but we need help in this situation.We are call our morgtate but no answer some people send us information for help but they charge 1,500 thru 3,500 is to much.We need more information were need going because in news we some information is not clear.So thanks for you attention and sorry for my handwrite enghlis...!!! THANS YOU

This looks good on paper. I don't think it is fair that not all would qualify though.

responding to the comment made on february 19,2009 i would like a number or name of company that i can call to help, half of these people that are doing the modifications are fake and thieves and no help for the homeowners, im behind in my mortgage and i have been ripped off by a lender already so i am very skeptical to trust anyone and they are charging outrageous prices to help anyone, the first thing i did was contact my service privider when i realized i was going to be in trouble the next month and i have been with them for 4 years without ever being late and they are full of it also, they help some not all its just all about money so please send me any information that i can us ASAP for me and for alot others reading this site

i like many of these people, would like to know who do i call or contact to get help with lowering my interest rate. i called the bank and they don't even know who to transfer me to.we have missed some payments but we are back on track and want to stay this way with some help with interest lowered.
i even went to the bank and no help there, please help me or guide me.
thank you!

I have a first and second mortgage which equal what my house is now worth, because of the economy my house has not increased in value. I have been trying to combine them and lower the interest rates. I have received several offers to streamline but when I call they tell me I have to wait til my equity builds up. In the meantime I am falling behind trying to maintain my home. The equity loan is 14% interest. Can you help or direct me. Thank you.

We are in need of help and i can not find anyone to help us. My husband lost his job almost a year ago has not found anything yet. I am working but only part-time. Because of this our house of 28 year's is being foreclosed on. We offered to pay the bank 500.00 a month but they told me to keep my money. Can anyone give me a number or something on the Obama foreclosure plans. We have no where to go once we have to be out of our house.


Thank you
Cindy Fahey

well all i have to say is that i am struggling with my mortage and i worked really hard all my life trying to buy my home and i been in my home for 5 years and im hoping that i am qaulify for some assistance that the president have made out and its really hard right now for me to keep my mortage paid i need it to go down some that way i can afford it better since things are so expensive now so i thought i was alone in this but now i know there is alot of people in the same shape so im hoping we will suceed with the help of the president.

I have been trying to get a more affordable payment with Wells Fargo with Home Affordable Loan Program. I spoke to them over the phone four times beginning in January. I was finally sent some material to send back into them that had already expired. I was then told to fax in my information. I have done that 5 times to date and still have not heard a peep from Wells Fargo.
This bank does not care anything about this new program.

how do we find out where to go for help? i have talked to 3 financial institutions and they have no idea what i'm talking about when i mention obama's refinancing program. I voted for him and i encouraged many others to vote for him, and i want to know details about this program, and if it can benefit me and others in my situation.

People are not at fault for what has happened to the declining market. People ARE at fault for not doing their homework on these ARM loans. Were you too hungry for a huge house with little attractive payments because you wanted to keep up with your friends? Did you not do your homework at the beginning to see what would be due at the end of that term that you so quickly signed up for? Were you not told what a sample payment would be after the fact? It's easy people. If you can't afford the real payment, don't buy the house. In America, we are so quick to buy BIG! For those of you that have lost jobs or just the value dropped, I feel for you. I don't feel for ARM owners who thought they being smart. Live and Learn.

where or how do you find the application for this program. my lender has not heard of this. thanks -mike

The Bottom Line People!! Obama’s plan is not going to help you!!

A loan in default is now a loan in the Federal Governments eyes who considers it a “TOXIC LOAN” and what the Bank Bail out money does is to guarantee your Bank for example Wells Fargo Mortgage “That if the bank decides to foreclose because they think you cant afford it then the government will pay your loan in “full” so the bank doesn’t loose money. Therefore the underlying issue is there is no reason for the bank to help you because they are in a winning situation. They get to capitalize on your money and high interest for however long you have lived in your home before they decide to foreclose. Secondly they get to capitalize on the resale of your property which becomes theirs free and clear at the hand of the taxpayer. Meanwhile another US citizen steps in and buys your foreclosed home while the bank makes even more money and interest if they finance through the bank that originally financed the home or they simply make at 100% profit off the re-sale which includes your equity and all of the payments you made over the past years.

So what do you think the banks incentives are really? They just stole your equity and will be safe thanks to the bail out plan. Right!! There is no reason why they will help you when they have a guarantee to make even more money off of your loss. Eleven million Americans are in the same TOXIC LOAN BOAT but are considered minor issues compared to the bigger picture of our current economic situation. If the banks can start to profit again they can loan more money. This is the Obama plan in the fine print!!!


I would also like to know who is willing to step up and make the banks help those of us that pay on time and just need refinancing. I need a reduction to help and I cannot seem to get the bank to help.....WHO WILL MAKE THE FOLLOW THE GUIDELINES.

I can't make my car payment either on my monster truck. Please Mr President, take money from my neighbor to help me out a bit. If you do ... I promise to vote for you.

Is there anything out there that can help me? My father just passed away and I would love to keep his house, but his mortgage is extremely high. Can anyone tell me if there is anything I can do besides walk away from the house?

We have a 1st & 2nd mortgage with Household Finance. We have had extreme medical bills resulting in a bankruptcy 4 years ago. We have a history of slow pay because of our employment history (I am self-employed)and my husband is on a fixed income. We have a 1986 double-wide with an additional room on 1.8 acres of property. We will never live long enough to pay off this mortgage at the interest rate. No one will take a chance on us by refinancing the 2 mortgages together. We need to do repair work on our home and would love to use equity but household finance will not help us out AT ALL. We are honest people who try try and try and are so frustrated with not being able to get any assistance from anyone. can ANYONE out there take a chance on us?

ok, well that all sounds great but....
WHO DO I CONTACT????????????????????


I am your average worker. IHAVE MADE ALL OF MY home payments up til june/09 after my work hours were cut. I went to several banks including mine(First National,which I had 20k down on intial loan/and first federal said they don't honor Obama/s plan )but was informed by banks that either I can not refience because I was late on June-09 payment or that they don honor Obama's refiance plan. I thought all banks. I have no other choice but to refiance or I loose my home and equity.

We have been in our home for 10 years. We have now seen the equity in our home drop by 60% here in California. On our street alone we have 5 homes in foreclosure. This does not include the others that have been foreclosed and re-sold. After spending their equity on toys i.e. jet skis, boats, big trucks, our neighbors are walking away. Of course they're keeping the toys. It's remorse, no looking back..just walking away. We are moving next year. My husband is going through a career change. We have put our move on hold because we can't sell our house. Now we may have to fore close or file a deed in lieu of foreclosure. We've already been to the lender (countrywide now B of A) and we do not qualify for the HOPE program, they will not refinance or look at at an interest rate reduction. I pay my mortgage on time and our credit score is 810-850. This whole situation is so disturbing. For us we will be okay, but this decision has been made with many sleepless nights and lots of prayer. I am just amazed at the nonchalant attitudes of some of my neighbors. Maybe I'm just getting old!

Things are hard for people of all incomes we all need help!!! The one's that are paying their home loan for they have jobs they deserve to be able to get their interest rates lowered for being responsible home owners for this will give them more money to spend else where which helps the economy. And for the people who had jobs and don't anymore deserve help too!! They didn't know they wouldn't going to have a job because the economy is falling apart Thanks to the CEO'S who gave themselves big bonuses no one deserves $ 400,000,000.00 bonuses when the bank is failing. The president is trying to fix things, But didn't realize that the bankers are very smart. He didn't put in stipulations on the money he gave the banks for the bad loans. He should of had the government buy the debt up and refinanced the loan and let the people pay them back instead of letting the banks take the money for the bad debit and not help anyone. Plus the banks put the money aside and it's drawing interest for the bank they have done this every time they got stimulus money. This means when the government asked the banks how much bad debit they had in home loans and the government paid them are home loans where paid for by the government and yet the banks can foreclose on your home and sale it and that's all profit because the government already paid the bad loan so the banks wouldn't fail. " WE THE PEOPLE NEED HELP" we don't have the money the banks have. "I'M HOPING THE PRESIDENT REALLIZES WHAT THE BANKS HAVE DONE!!!!" THEY GOT THE MONEY AND NOT HELPING ANYONE IN FORCLOSER BECAUSE THEY CAN MAKE EVEN MORE MONEY WHEN THEY "SALE" OUR HOMES


I am a single mother with serious Lupus, and Osteoarthritis. I have tried to work with CitiMortgage for TEN MONTHS to modify my loan so I can afford the payments. I lost half of my income July 08, and notified them right away. I also went through a divorce, his name is not on the house. When the O'Bama plan started I thought great, I definitely qualify for the program! Well, CitiMortgage told me on July 27, 2009, I did qualify, and my payments would be much lower, 31% of my income, I was thrilled. BUT, today, August 6, 2009, I get a call, and they told me the Investor, Wells Fargo, DID NOT want to handle my loan!!! How can they give it to you, and then take it away? I also have been served with FORECLOSURE papers. I don't know where to go from here? During all of this 10 months, I tried to sell my house for four months, but no luck. Who can I talk to about the Government program? I am desperate. I can't physically go through much more of this. Please help if you have any advice. Thank you.

It seems as though these kinds of articles are all over, but no one has a link as to who to contact. I also believe that's whats making foreclosures rise: The banks are hurrying to foreclose before they are compelled by the government to help. It's a dirty deal.

With all the help the government is suppose to be giving to helping people keep their homes, you'd think they would have included people who own manufactured homes that are in parks. We don't get any help and the mortgage companies know that and they aren't doing anything to help us. I work part time and go to school full time (which is incouraged by the President), but because I still collect part of my income from unemployment my mortgage company will not help me. It took me 9 months last year to get them to defer a payment, they told me that since I missed that one and my debt ratio isn't good, I will probably lose the house any ways. Well, if they don't help lower my monthly payment I might just do that.

This plan was more for the investors than it was to help homeowners.

Don't bother applyingfor the Homeowner Affordability and Stability Plan through Ocwen. They have just turned us down and charged us $750.00 for the priviledge - we are now in foreclosure. If they approve a modification, we will end up paying over $20,000. We are also upside down, do we even bother with these crooks?

Anyone who took out a mortgage that was knowingly going to have the payment increase should blame no-one but themselves when that happens. The fact that we are all paying for your feel good quick actions disgusts me. Choice.take out a mortgage with a fixed rate and buy less house because of higher payment or take out adjustable mortgage with lower rate and get more house? I say, fixed rate you said adjustable now I pay for your actions. Don't blame other people because you purchased a house you can't pay for.

Man, the banks have been struggling for awhile now, which really scares me. But I am hoping and really believing in the best.

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Lynn Sweet

Lynn Sweet is a columnist and the Washington Bureau Chief for the Chicago Sun-Times.

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This page contains a single entry by Lynn Sweet published on February 18, 2009 9:45 AM.

Burris before the Illinois House impeachment panel. Jan. 8, 2009. C-SPAN video was the previous entry in this blog.

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