Democrats call for 90-day foreclosure freeze

[DogPoundPup]

Source: CNN Money

WASHINGTON(AP) -- Senate Democrats are urging Fannie Mae and Freddie Mac to immediately freeze foreclosures on mortgages they hold.

The troubled home loan giants, seized by the government Sunday, should instead work to help struggling borrowers stay in their homes, four senators say in a letter to the firms' new chief executives and the regulator now controlling them. They're calling for a 90-day freeze on foreclosures.

Fannie (FNM, Fortune 500) and Freddie (FRE, Fortune 500) together hold or guarantee some $5 trillion in outstanding mortgages -- more than half the nation's total.

The Bush administration announced Sunday it was taking over the two companies in a bid to help reverse a prolonged housing and credit crisis.

NOTE: This is the complete article as posted at CNN Money

Read more: http://money.cnn.com/2008/09/11/news/economy/foreclosures.ap/index.htm

[Shoelace]

1. great idea, now that the GOP is trying to make it illegal for forclosed voters to vote

in Michigan. Not to mention all the people who will need help from the new bill just signed to help them. They will need time to get that help.

[VeraAgnes]

12. Excellent!

Then they won't purge these ones.

[kurth_]

2. We also need an extension on unemployment insurance

It's bad getting worse.

[WriteDown]

3. Terrible idea..

Just delaying the market correction that is needed. Not to mention, saving the home flippers who tried to make a fast buck.

[here_is_to_hope]

4. Agreed. n/t

[whistle]

8. The flippers won't make a fast buck if no mortgage money is available

...so they will go under.

It's the people who are running the risk of losing their single place of residence who need protection from the speculators and trust vultures. I see this as a cooling off period while the loan portfolios are sorted out. This whole thing has been a set-up by BushCo to create chaos and economic crisis giving yet another edge to McCain to steal the election.

[Spouting Horn]

9. Exactly

Socialism for some, while those who made good decisions have to pay for it.

[The2ndWheel]

10. Why would they stop now?

They already started to pump money that isn't there into the whole thing.

[whistle]

5. This is absolutely essential and if the could get 120 day freeze that would be even better

...as it would allow time to not just sort out this massive economic and financial meltdown taking place, but it would also give time for the Obama administration to prepare on the day he is inaugurated as the next president to reverse this insane bailout plan that BushCo cronies have put in place.

The democrats and any sane republican in congress must pas this housing and bank foreclosure freeze bill with a presidential veto-proof majority.

[kirby]

6. What is there to sort out?

The real estate prices in this country were out of control. People refinanced over and over to extract money from their homes like an ATM machine. Now the bubble has burst and the homes need to fall much further to stabilize. Any interference with this will only delay the fact that no matter how much you wish and hope, your home is not worth the inflated price it once was.

[kirby]

7. deleted dupe - DU post hiccup

[CitizenPatriot]

11. Gee, does that mean those people

might still be considered citizens and be able to vote? HORRORS! Don't let the ungrateful lazy bums vote! They hate Republicans and they're "whiners". (SARCASM)

It strikes me as profoundly sad that the CEOs of this failure will be getting 23 million dollars in severance packages unless Obama gets his way. And millions of Americans will lose their homes and their right to vote. And McCain will benefit from this, he and Phil Gramm, the genius who deregulated the mortgage industry along with the energy sector so his wife who sat on the board of Enron could profit obscenely.

I personally lost my savings in this one but am most relieved to hear that the rich people got their preferred stock sold just in time to score big on my back. I am more than happy to pay more than my share of taxes since things are so fucking hard for them right now. BITE ME, GOP. (More sarcasm) We have no health insurance, either, but will be super happy to pay tax on that as well if I can ever get some. We have 2 people working here and we often have to dip into savings (which now don't exist). Thanks for all your great work, GOP. Also, loved it when I found out these Fannie and Freddie thieves lied in the financials (which they all knew but the lowly among us did not)...and their biggest lobbyist is running McCain's campaign. Way to Lead!

Lipstick on a pig? You betcha. And you, McCain, are the pig.

[MessiahRp]

13. This isn't just about helping people with foreclosures...

This is politics. Republicans are trying to use foreclosure lists to prevent voters from voting under their former addresses. This is about preventing as many of those foreclosure - vote challenges as much as it is about helping people out. Hence the 90 days (right until the end of election season).

I agree 100% with it but I wanted to point out why I suspect this is being pressed.

On edit: I see that has been mentioned above in other replies. Good observations by all.

Rp

[TygrBright]

14. Eh, yer all missing the TRULY BRILLIANT thing about this maneuver

What they're trying to do is force Republicans to be against it.

Brilliant!

"GOPpies don't want to help out people in foreclosure!"
"GOPpies abandon victims of the mortgage disaster!"

Loverly. Someone has their thinking cap on.

appreciatively,
Bright