Newly-elected President Barack Obama, together with the Democratic-controlled Congress, has pressed 2 economic leaders to work out on a big plan. The President has made a promise of spending billions of funds coming from the financial bailout. In addition, he will pay more attention to the rising foreclosures.
Republicans are open to the President’s “unity of purpose”. They judged the Democrats’ way of spending and requested to have a meeting with Obama to inform him of their tax-cutting schemes.
According to Congress officials, the meeting will take place next week.
President Obama’s governing situation was illustrated by the maneuvers: He plans to make an action quickly to face the economic crisis, and at the same time fulfilling his promise of breaking partisan barriers.
Meanwhile, he already has $350 billion on hand to give assistance to banks and lenders in terms of adjusting and extending the loans to small businesses and consumers.
Furthermore, the Congress is planning to provide him an estimated amount of $825 billion to do something in the economy and to give more jobs to the people.
The House has made a vote which resulted in 260-166. It was about providing $40-$100 billion from the bailout in order to lessen foreclosures.
The legislation, on the other hand, would implement some limitations on executive pays to banks which are receiving the funds, and will be obliged to give reports as to how they will use the money.
D-Bloomfield Hills Representative Gary Peters said it is obvious that the officials should make more effort to keep the house market from fluctuating.
In addition, he said that the federal is doing something to the financial disaster; however, it focuses on Wall Street more and not in assisting homeowners.
There were few Oakland County Congressmen who voted for legislation. A year ago, 9,200 foreclosures were filed in that area.
Meanwhile, Obama will be using $350 billion from TARP to possibly stop foreclosures.
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I became disabled in 7/2006 and lost my job while on disability, in 4/2007 I had to have a hip replaced and the other hip will need to be replaced in the near future. Then in 11/2007 my husband of 18 months was killed in a traffic accident. I had to file bankruptcy due to the loss of income (over 56% decrease in income),
and the $61,760 in medical bills my health insurance didn’t cover, and maxed out our credit cards buying food, paying utility bills, etc. We had to use my 401 (k) to pay my $ 928 per month COBRA premiums and drained that over 2 years. Needless to say, I’ve had more than my share of hardship the last few years. I did all of the following as a single, childless, mid 40’s female. I saved and put $50,000 down on my home and property in 2005 and never had a late or missed mortgage payment until 7/2007. Prior to ever being late on a mortgage payment I contacted my lender to find out my options. Wells Fargo wouldn’t even talk to me about a loan modification until I was 3 payments late (at which time they file for the foreclosure on your home). The sale date for my home was only 90 days later and the loss mitigation department was still reviewing my file! So once I got my retroactivce SSDI benefits I paid to get it out of foreclosure; Wells Fargo then closed my modification file. In January wells Fargo offered me a forbearance agreement where I would pay 1/2 the mortgage payment for 2 months and the third month have a large balloon payment. Wells fargo said that would give me time to get more income at which time they would consider a loan modification; if I had more income I wouldn’t need a modification!!! What are they thinking?? My mortgage payment is currently 74% of my income and I need help before the house goes in to foreclosure again. I’m current on my payment and hopefully will be able to scrape up the mortgage payment next month. I have decrease my utilities expenses by over 50%, have given up all social activities, haven’t repaired my car, stoppedsome of my medications to save money and I have been getting by on minimal food consumption (I’ve lost 34 lbs) over the last year. It’s a catch 22 and now feel I wasted all my retroactive SSDI benefits to try to stay in my home and Wells Fargo won’t discuss a loan modification as I didn’t take the forbearance agreement. What do I do now? I’m a 50 year old disabled widow that will probably end up in foreclosure again in a few months and I’ll be homeless and out on the streets. Lenders are not very loan modification friendly, all I wanted was a fixed rate over 40 years, no forgiveness of principal or anything along those lines. I have an adjustable rate that starts adjusting in 2012. Wells Fargo hasn’t helped me at all with their forbearance offer nor did they really read my hardship letter, if they had they’d know my health problems are not going to get better and I not able to work in a conventional job anymore. It’s a shame that our tax dollars are going to bailout the lenders rather than the homeowners that are the ones that need it.
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