Obama calls for 90-day moratorium on foreclosures

[bigtree]

56 minutes ago


TOLEDO, Ohio (AP) — Democrat Barack Obama proposed more immediate steps Monday to heal the nation's ailing economy including a 90-day moratorium on home foreclosures at some banks and a two-year tax break for businesses that create new jobs.

Obama proposed Monday that banks participating in the federal bailout should temporarily postpone foreclosures for families making good-faith efforts to pay their mortgage.

"We need to give people the breathing room they need to get back on their feet," he said, adding that families living beyond their means share some of the responsibility.

He also called for a $3,000 tax credit for each additional full-time job a business creates. That means a business that adds five jobs would get a $15,000 break. That would end after 2010 and would cost $40 billion, the campaign estimates.

Obama proposes letting people withdraw up to 15 percent of their retirement funds, to a maximum of $10,000, without the penalty that now applies to early or excess withdrawals. The change would apply retroactively to all of 2008, as well as 2009. People would still have to pay normal taxes on the money. He said letting people dip into their IRAs and 401(k)s would help them get through tough times when money is tight.

State and local governments face a money crunch, too, and Obama called for new federal short-term loans to help them through the crisis. He called it a "funding backstop" to ensure that states and cities can meet payroll or keep projects moving.


read: http://ap.google.com/article/ALeqM5isOFwdbq0tsqatW6vJpkDRTI1gMgD93PQOK00


I've been in foreclosure before and needed all the time I could manage to raise the cash. This is a very welcome proposal for thousands of Americans, I'm sure.

[teamster633]

1. How long before McSame appropriates this as his own, too?

[bigtree]

4. needs more taxpayer money for negligent, fat-cat lenders

. . . before McCain signs on.

[bigtree]

5. McCain rescue plan won't include foreclosure freeze: aide

http://afp.google.com/article/ALeqM5jgnUxGohNQLzVeaTLeLkVsbDl8tQ

[orestes]

6. Tomorrow

He was waiting for Barack's speech today to know what to crib for tomorrow. Media outlets will then phrase it as if it was McCain who was being copied by Obama.

[theoldman]

2. The devil is in the details.

Banks foreclose when people are not making payments. There has to be some assurance that payments will start up again after 90 days. Maybe reduced payments are better than none at all.

[bigtree]

3. I couldn't make payments until the foreclosure proceeded a ways

. . . all the while, the 90 day window for them to actually file the foreclosure got closer. It's an ambiguous process in which time for the homeowner is their most precious commodity.