“How will admin work to help underwater homeowners who aren’t behind in payments but are trapped in homes they can’t sell?”
In a moment of honesty, Obama responded that “given the size of the housing market, no federal program is going to be able to solve the housing problem.” Obama administration said Thursday "...it would require lenders to allow unemployed homeowners to delay their monthly payments for up to a year without threat of foreclosure." Treasury is also asking lenders to offer a similar deal to borrowers under its primary foreclosure prevention program, but it does not have the authority to require the change Despite predictions by Obama’s advisers that the housing market would rebound by now, real estate prices are falling once again. And the administration’s past efforts to push banks to modify the mortgages of families who missed their monthly payments have been widely criticized as lacking. A questioner during a town hall event asked what mistakes the president had made in handling the economy:
“The continuing decline in the housing market is something that hasn’t bottomed out as quickly as we expected,” Obama responded. Later, he added that his administration’s efforts to help struggling homeowners were “not enough.” “And so we’re going back to the drawing board,” he said.