Boxer: ‘Wave Of Defaults’ Coming If Effort To Ease Refinancing Fails

LOS ANGELES (CBS) — Senator Barbara Boxer is calling on lawmakers to give millions of struggling homeowners the chance to refinance their home loans or face another potential meltdown in the housing market.

At a press conference on Tuesday, Boxer said the Helping Responsible Homeowners Act would allow up to two million “additional responsible homeowners” to modify their loans by easing restrictions that she said has kept them locked in to sky-high mortgage payments.

KNX 1070’s Karen Harlow reports the lawmaker wants to take advantage of historically low interest rates to help homeowners meet their obligations.

The bill aims to help those who continue to make their mortgage payments on time, but whose homes have lost value.

“In this housing crisis, we’ve been kind of behind the 8-ball,” said Boxer. “We’ve got to get out in front of it, and we want to avert a wave of defaults.”

Over 3.5 million first mortgage loans in the U.S. are currently at some point in the foreclosure process.

Comments

One Comment

  1. rjsmitty says:

    I have no faith in Californias Government. They will only make this worse , but you voted them in.

  2. Steve A says:

    We NEED to let the housing market run its own course. There is NOTHING a politician can do to “Make it all Better”, they Only make Worse, in their efforts to get re-elected.
    The people crying for relief from the government are the same people who honestly BELIEVE that Life is Supposed to Be FAIR ! They actually believed the value of real estate would continue to go up forever; at least long enough for them to make they Profit ‘ They Deserved ‘?
    My Life didn’t come with a ‘Guaranteed Good Time’, did yours? Even when you do Stupid Stuff, like when you buy a house You Knew You Could BEARLY Afford!?
    Most politicians are in office because their P O P U L A R not because their very Smart.

    1. Anthony says:

      While i agree with you, you have to be careful when you’re calling people dumb, even more so when you don’t know the difference between their and they’re.

  3. Luka says:

    I hope this happens. It’s one of the first good ideas I’ve heard.

  4. Kenny G says:

    Memo to Madame Boxer: Here’s a thought….How about actually admitting that everything you tried to prop up the housing market didn’t work and stop trying to do it over and over again. How about bringing home prices down where it’s actually affordable. So that some of us other responsible people trying to save 20% as a down payment for a house can actually buy one.

  5. waltm626 says:

    Boxer’s a complete idiot incapable of doing anything correctly. This take from the rich give to the unmotivated out of work people has to end.

    1. JJ says:

      The rich GOT rich off the middle class and poor….who are now losing their homes. The rich were riding that “fake” real estate bubble until it burst because they exploited it. Now they want to kick back, hoard all the cash and watch the whole economy get sucked into oblivion. Hope they enjoy all their money while the state turns into a ghetto hell with trashed repo houses sitting next to their mansions.

  6. LA's the place says:

    I can’t fathom how she got re-elected in the first place. She is a grade A hack incapable of coherent thinking

    1. Starr says:

      Pin my tail and call me a deonky, that really helped.

  7. Jim Hoffmann says:

    The president can solve the housing problem by a simple stroke of the pen. He can sign an executive order lowering the interest rate of each responsible owner to 1-2 % above prime. Like throwing Monopoly money into Free Parking, this would create instant spending power for millions of responsible people without printing one dollar. Further, he won’t touch the principal on the loan. This could be a temporary rate reduction until the economy bounces back. I say President Obama should do it immediately…

  8. Stubby says:

    Let the housing prices fall so the market can return to normal. No more entitlements and phony market support. Boxer is into redistribution just like Smokey. Leave things to the natural order. Keep government out of the private sector. Let these homeowner go belly up.

  9. swhitS says:

    The problem is, this won’t go away until we get the “who” behind all this mess. Stop looking at Dems and Repugs they are just puppets it goes beyond that but they are both working for the one and the same with gratitude.

    Ron Paul 2012!
    End the Fed, Fairtax.org, Stop all services to illegals, reinstate your constitutional rights and bring back jobs for Americans.

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