Mortgage Relief Program Released

Administration's New Guidelines Aimed At Helping Up To 9M Homeowners Stave Off Foreclosure

(CBS/ AP)  The Obama administration is kicking off a new program designed to help up to 9 million borrowers stay in their homes through refinanced mortgages or loans that are modified to lower monthly payments.

The Treasury Department on Wednesday released detailed guidelines designed to let the lending industry know how to enroll borrowers in the program announced last month.

To help borrowers determine if they are eligible, the government has put answers to common questions and assessment tools on the Web site www.FinancialStability.gov.

"It is imperative that we continue to move with speed to help make housing more affordable and help arrest the damaging spiral in our housing markets," Treasury Secretary Timothy Geithner said in a statement.

"The housing program needs no approval by Congress -- it starts now," CBS News' White House Correspondent Chip Reid reports. The White House says if you think you qualify, call your mortgage company. They warn callers to be patient because those companies are getting flooded with calls.

On Tuesday, key moderate Democrats in the House wrote a compromise to a housing bill that requires bankruptcy judges to consider whether banks offered homeowners reasonable loan restructuring deals before they weigh in with judicial remedies.

The new language is expected to ease the bill onto the House floor for a vote as early as Thursday.

"The concern is that we want to ensure that those people who get relief have tried other avenues," House Majority Leader Steny Hoyer, D-Md., said Tuesday.

Borrowers also would have a responsibility to prove that they tried to modify their mortgages with their lenders before seeking help in bankruptcy court.

Rep. Zoe Lofgren, D-Calif., one of the centrist negotiators on the bill, said homeowners in fear of losing their homes would have to show that they provided their financial documents to their lenders, "not just a phone call to an answering machine."

The deal would require judges to consider whether homeowners were offered a "qualified" loan workout - defined as one that would set monthly payments equal to about one-third of a homeowner's income.

Bankruptcy judges would have to deny a judicial mortgage adjustment in cases where the homeowner is deemed able to afford the loan.

The changes bring the legislation closer in line to what President Obama's administration has sought and what the banking lobby finds acceptable. The mortgage industry has argued that unfettered access to bankruptcy court mortgage modifications would impose steep and unpredictable costs on its companies that would be passed along to borrowers as higher fees and interest rates.

Their opposition helped derail the bill last week, even after leading Democrats agreed to restrict it to people who had tried other means of reworking their mortgages and those who couldn't afford their home loans.

The industry has "been giving it everything they've got," said Rep. Brad Miller, D-N.C., an architect of the legislation. "They still have remarkable influence."

Still, Miller and some other backers of the idea said they support the new plan.

"It would encourage lenders to make modifications and there would be consequences if they don't do it," Miller said.

Democrats discussed the compromise in a closed meeting Tuesday with Housing Secretary Shaun Donovan, who told them the legislation would dovetail with the administration's overall efforts to reduce foreclosures. Obama unveiled a $75 billion housing initiative two weeks ago that included a call for legislation to permit adjustments to mortgages in bankruptcy court.

Following the session, Lofgren and two other moderate Democrats - Ellen Tauscher and Dennis Cardoza of California - circulated a letter seeking support for their compromise.

"Some may think the changes made to the bill go too far while others will contend that they do not go far enough," the "Dear Colleague" letter said. "Given the ever-deepening housing crisis, however, we ask you to place such differences aside - as we have done - and support this effort."

Some liberals said the new limits were inappropriate. Rep. Maxine Waters, D-Calif., said many mortgage companies make it impossible for homeowners to even complete a phone call to their lender, much less work out more affordable loan terms.

"I don't think people ought to have to go through that mess" to get mortgage relief in bankruptcy courts, Waters said.

She said the banking industry still has a stranglehold on Congress. "These guys rule this place," Waters said.

[CraigBerkeley]

Three million illegal foreclosures and counting!!

Is Your Lender A Patriot Or Terrorist?
http://reno.broowaha.com/article.php?id=3462

Beware Of Fraudulent Foreclosure Notices
http://reno.broowaha.com/article.php?id=3825

Many of these Notices of Default are not real, they are fraudulent and they are just another way to steal houses. Then the fraudster ?sells? the stolen house under a fraudulent Trustee?s Deed.

Rachel And Her Children: Homeless Families In America @ http://reno.broowaha.com/article.php?id=3206

The illegal three million foreclosures have also added to the homeless despair.

illegal Is Your Lender A Patriot Or Terrorist?
http://reno.broowaha.com/article.php?id=3462

Just Do The Required Home Loan Modification
http://reno.broowaha.com/article.php?id=4070

Beware Of Fraudulent Foreclosure Notices. Many of these Notices of Default are not real, they are fraudulent and they are just another way to steal houses. Then the fraudster ?sells? the stolen house under a fraudulent Trustee?s Deed. http://reno.broowaha.com/article.php?id=3825

Reno, Nevada?s Countrywide Home Loans manager Sue Barry should also be charged with Mortgage Fraud, along with Prudential Nevada Realty former Regional Manager Valerie Mapes, former Prudential Nevada Realty Realtor Keith W. Gledhill, Mortgage Fraudster Reno landlords John and Kay Sickler, Mortgage Fraudster Reno escrow officer Jenna Kay Clark and her company Reno?s First American Title, Reno Realtor Allan Zane and his Broker Magi Bird, and Reno?s First American Title.
http://reno.broowaha.com/article.php?id=3415
http://reno.broowaha.com/article.php?id=3300
http://reno.broowaha.com/article.php?id=3320
http://reno.broowaha.com/article.php?id=3351
http://reno.broowaha.com/article.php?id=3372
http://reno.broowaha.com/article.php?id=3377
http://reno.broowaha.com/article.php?id=3397
http://reno.broowaha.com/article.php?id=3404
http://reno.broowaha.com/article.php?id=3421
http://reno.broowaha.com/article.php?id=3430
http://reno.broowaha.com/article.php?id=3448

For copies of the supporting documents that have been uploaded, see http://renomortgagefraudexposes.ning.com/

[newplan]

This bail out plan, for us that dont have a loan with franny or freddie, where is our help. For us that have struggled staying current with our mortgage but are having trouble staying that way, what we dont count. If we were a bank or a auto company it would be different. I really think our goverment should of rethought this.

[harbinger19]

"The concern is that we want to ensure that those people who get relief have tried other avenues," House Majority Leader Steny Hoyer, D-Md., said Tuesday.

Borrowers also would have a responsibility to prove that they tried to modify their mortgages with their lenders before seeking help in bankruptcy court.

Rep. Zoe Lofgren, D-Calif., one of the centrist negotiators on the bill, said homeowners in fear of losing their homes would have to show that they provided their financial documents to their lenders, "not just a phone call to an answering machine."

The deal would require judges to consider whether homeowners were offered a "qualified" loan workout - defined as one that would set monthly payments equal to about one-third of a homeowner's income.

Bankruptcy judges would have to deny a judicial mortgage adjustment in cases where the homeowner is deemed able to afford the loan. "
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First off, I'm against all bailouts for anyone. But that said does anyone besides me see a double standard?

1. Banks and Wallstreet who got BILLIONS did not have to prove need or trying other avenues or anything--just free money and let the partying begin

2. OK--the new mortgage should be only 1/3 of their monthly income? Fine for all the deadbeat mortgagees that still have jobs--but what is 1/3 of NOTHING? If they lost their job due to layoff and their mortgages are going under due to no job? What do they pay?

What will Obama and the Dems do when the number of people with NO JOBS who begin defaulting EXCEED the number who should only pay 1/3 their income? Or what happens when a person goes from say 7500.00/month down to maybe 1000.00 per month? All of a sudden, their 500K home has a 330.00 mortgage?

Nothing like thinking....apparently that is a rare trait in Washington politics.

[bozworth4]

We were just having a conversation on how God will not let the righteous be forsaken and how we are living in a time where people deserve help without judgment. You are welcome to scroll through the dialogue and view for yourself.
Posted by blog_fever2

Didn't know there had to be a "time" people helped others without judging. And I also believe over the past few years some war widows and mothers would certainly have a word or two about righteous. Kinda like saying God bless America???? I am not speaking from a money standpoint, but from a good vs. bad. We are NOT always the good guys. We are now a country in moral decay. If rules and laws are not enforceable, change them. Everyone is concerned about Constitutional rights etc: Best I can tell there are only 10 laws. They are not race-gender specific just mankind specific. But these are only my opinions.
And back to the subject at hand, yet another example of Government divine intervention, more paper work, more job created, more money to the top under the guise of helping middle income. No democrats or republicans, only politicians that would pimp their mother for a dollar, yen, or euro.

[SusanStoHelit]

It's a good program - help those who got scammed (and hey, Madoff has proven even the wealthy and smart can be scammed) into a proper mortgage, help those who have lost their jobs, and otherwise need just a bit of help to stay in their homes, keep paying them off. That's the key.

If they get foreclosed on, the bank gets less stable, housing prices in the area decline (affecting all homeowners, no matter how 'virtuous' they think they are), and a few more people likely end up needing public assistance -more of our tax dollars.

[blog_fever2]

What has all the bible thumping got to do with THIS?
Posted by bozworth4 at 4:21 PM : Mar 4, 2009
***********************************************
We were just having a conversation on how God will not let the righteous be forsaken and how we are living in a time where people deserve help without judgment. You are welcome to scroll through the dialogue and view for yourself.

[bozworth4]

What has all the bible thumping got to do with THIS?

[blog_fever2]

I was wanting to read about the program and got a sermon.
Posted by caco58 at 4:01 PM : Mar 4, 2009
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I hope you found the info to be useful.

[caco58]

I was wanting to read about the program and got a sermon.

[caco58]

Boy, I've had my Sunday church early!! God bless

[blog_fever2]

But the "True Believesr" thinks they have the ONLY path to salvation. They think they are all that. So tiring.

Anyway - Take care of yourself. God Bless.
Posted by BerkeleySkirtLifter at 3:20 PM : Mar 4, 2009
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I agree with your statement that some true believers are overbearing. Then they wonder why the can not witness to people effectively. I will only say this, the only true salvation is obtained by a simple formula.... first, just confess with your mouth and believe with your heart that Jesus Christ is your saviour, and you will be saved. Period. Now, once you do that, there is a life long process that one must commit to in hopes of becoming perfect like Christ is. That is called sanctification. (That is where most Christians mess up) God promised us in Mark chapter 3 that He would forgive all sins except blasphemy against the Holy Spirit, so once you confess Christ, you slate is wiped clean. "If we confess our sins, He is faithful and just to forgive us our sins and to cleanse us from all unrighteousness." I John 1:9

Just let you light shine that someone else may be compelled to seek Christ. Thank you for your conversation today. I hope you have taken from this as much as I have.

[blog_fever2]

My resources are limited and I will help who I feel is deserving of my help. If I pray for guidance, I have a good shot at making the right call.
Posted by BerkeleySkirtLifter
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You are missing the biggest part. Your assessment (judgment) is based on guidance from the Lord, not yourself. He wants you to have wisdom and knowledge, but you have to remember that God's grace is where the knowledge and wisdom comes from. Not man. Ephesians 2:8 "For by grace you have been saved through faith, and that not of yourself; it is the gift of God." Remember on your best day, your assessment is nothing without God. Just remember this, you may have a lot and still not be able to help, so it's not based on how much you have to give, but that you help anyway you can. "Let us therefore come bodly to the throne of grace that we may obtain mercy and grace to help in the time of need." Hebrews 4:16

I thank God that you opened your Bible and read the word. That is where your help comes from. Be blessed.

[bradkt1]

Look, the line has to be drawn somewhere and wherever it is drawn, it's going to be unfair. I'll be one of the ones who got left out, but because my credit is decent and I have a decent income, I can afford to pay my mortgage at 4.75% fixed rate over 30 years. This plan was never designed to help me and those like me. What it was designed to do was to stabilize housing values of those like me who are adversely affected by foreclosures on others in my neighborhood who are in danger of losing their homes.

To me, the key caveat is will those homeowners who can afford their homes be able to refinance and get decent mortgage interest rates like I was able to? If credit is freed up for people to refinance at decent market rates, this plan should achieve its limited goals.

[nolalou]

I know this program is not popular with some, since it seems unfair that those who pay their mortgages on time are being 'punished' while others are being helped. Some home owners are at fault for buying more home than they could afford, but others are victims of lay-offs, or loss of income for other reasons that they could not anticipate.
The problem is that to just allow millions to default would leave banks with property they cannot unload. That brings down property values all over the country, and further hurts the economy. Unfortunately, there is no ideal solution that will please everyone, but something has to be done. Doing nothing, and hoping the problem just goes away is not an option!

[blog_fever2]

God bless bro. And please....don't rely on God to much. He wants you to grow, to make mistakes and learn. Life is eternal and we are here on Earth for a very short time compared to eternity.
Posted by BerkeleySkirtLifter at 2:02 PM : Mar 4, 2009
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I have to agree to disagree on this. Please, when you get a moment just read Matthew 7:1-6. My God teaches me to "Trust in the Lord with all your heart and lean not to your own understanding; in all ways acknowledge Him and he shall direct your paths." Proverbs 3: 5 & 6. I hope you find it necessary to seek Him first. I truly believe in the depths of my soul it will make all the difference for you. I will be praying for you.

[blog_fever2]

There is more to it than that. God expects us to help ourselves and our deserving neighbors.
Posted by BerkeleySkirtLifter at 12:58 PM : Mar 4, 2009
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How can you decide who is deserving without judging your neighbors? God says in Matt 7 not to judge anyone. Just trust that what you are doing is pleasing to Him and he will supply your needs. God bless you.

[WillowOne]

Sounds like another democrap switch and bait plan to me...

Pull down $75 BILLION DOLLARS claimng to aid Americans...

Write the selection criteria for help so tight that very few will qualify for it...

In the end the unused money gets returned back up to the feds, placed in the general fund and disappears into the black hole of government, never used for the intended purpose it was legislated for. They just hand it to whomever or whatever special interest group that will suck in the most votes for the regime!

[blog_fever2]

And I don't feel like bailing out every single greedy neighbor that participated in this fiasco.

With that I'll say, You too, Have A Blessed Day!
Posted by BerkeleySkirtLifter at 12:14 PM : Mar 4, 2009
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War, child rape, meth addiction, Wall Street Financial Excutives, and all sorts or "Free Will" induced blights on society, to exist simultaneously with the blessings heaven brings will happen to people in this world, because this world is not in correct alignment with Christ. God gave humans a choice. It is up to us to choose to accept Him or reject him. My God told me not to worry about it because He will take care of it. He says clearly to "seek first the kingdom of God and His righteousness and all these things will be added to you." Matt 6:33
"I beseech you therefore brethren, by the mercies of God, that you present you bodies a living sacrifice, holy, acceptable to God, which is your reasonable service. And do not be conformed to this world, but be transformed by the renewing of your mind." Romans 12:1 & 2.

Everyone wants to point blame on someone else, but what about the hardworking person that got downsized during all of this?? We are all thinking of people buying homes they couldn't afford, but what about the responsible ones that fell on hard times based on things they couldn't control. God is in control and the righteous will not be forsaken. May God continue to bless all that you do.

[SusanStoHelit]

Sounds good. Right now, banks are looking at people with bad loans (ARMs that have ballooned up), and refusing to help them into a good standard 30 year fixed, even if they could afford it. They're foreclosing on people who CAN afford their home - with a proper loan. This is dumb, and bad for our economy, bad for home values, bad for the families that likely now will get public assistance and cost us more money.

Seems to me, for some people, they're so fixated on punishing people for making a different choice, losing a job, they miss who is really being punished - all of us. If we can have a restructured loan rather than a foreclosure, that helps all of us.

[WillowOne]

"I don't think people ought to have to go through that mess" to get mortgage relief in bankruptcy courts, Waters said.

Strange, Maxine Waters never raised a hue and cry regarding leading these people to take out these scam loans....as a matter of fact, she flat out, bald faced LIED about it at the 2004 hearing on proposed regulation of Fannie/Freddie and lenders...

This goofy broad needs to be sent back where she came from....SHE'S A HUGE PART OF THE PROBLEM!