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President Obama unveiled a $75 billion multi-pronged plan Wednesday that seeks to help up to 9 million borrowers suffering from falling home prices and unaffordable monthly payments.
The long-awaited foreclosure fix marks a sharp departure from the Bush administration, which relied mainly on having servicers voluntarily modify troubled mortgages.
Obama, on the other hand, will make it easier homeowners to afford their monthly payments either by refinancing the mortgages or having their loans modified. The president is vastly broadening the scope of the government rescue by focusing on homeowners who are still current in their payments but at risk of default. And he puts billions of federal funds into enticing servicers to modify the loans of those who've already stopped paying.
While still voluntary, the program contains a mix of carrots and sticks for mortgage servicers and investors, both of whom have been seen as resistant to modifying loans. The program would not only give servicers $1,000 for each modification, but would give them another $1,000 a year for three years if the borrower stays current. It will also give $500 to servicers and $1,500 to mortgage holders if they modify at-risk loans before the borrower falls behind.
But the administration is also wielding a big stick. It will work with Congress to amend bankruptcy laws to allow judges to modify mortgages, a step community advocates say is badly needed but that the financial industry abhors.
Originally posted by jam321
I just don't see this as being fair. Why should irresponsible people be helped out while responsible ones get no help or reward?
I guess the best thing to do is to quit my job and live off the government. With the health insurance, subsidies, free programs, food assistance, bill assistance, etc. I will probably be making twice as much as i am making now.
Who says it doesn't pay to be poor?
Originally posted by skeptic1
reply to post by ~Lucidity
Honest mistake....lied to...coerced....
I suppose you are talking about the people who got loans they couldn't afford and didn't bother to read what they were signing?
Originally posted by ModernAcademia
reply to post by soldiermom
I don't want to be offensive, but perhaps I am just saying this because of your username and avatar look.
but you seem to be like the type of american patriot that only blames the people and never the govt. or whoever are in the govt.'s pockets.
these foreclosed-home people aren't irresponsible, they are victims of a mortgage SCAM!
If the people don't blame the source history will always repeat itself