foreclosureU.S. President Barack Obama on Thursday vetoed a bill that would've required courts to recognize out-of-state foreclosure documents as valid. Putting the brakes on the bill, which the House of Representatives passed in April and the Senate approved last month, signals caution at a time when allegations of flawed foreclosure documents are popping up around the country.

Housing advocates have said that the bill would make it harder to challenge the validity of foreclosure-related documents, thereby speeding up the foreclosure process. Foreclosures are expected to reach 1.2 million homes this year as high unemployment and sagging home values leave many borrowers unable or unwilling to pay their mortgages.

"We have heard from officials around the country about the concern that they have about the possible unintended consequences of this legislation -- certainly in light of what we are seeing in the mortgage processing," White House Press Secretary Robert Gibbs said in a media briefing (via CNNMoney.com).

Some banks, including Bank of America (BAC), JPMorgan Chase (JPM) and Ally Bank subsidiary GMAC Mortgage, have suspended foreclosures in recent weeks to review allegations of inaccurate paperwork. The federal government is also investigating these allegations after a request from California's Democratic delegation.


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Meadhh

Oh my God!! Americans, Obama's veto is just another polical stunt to fool the Amerian people. The bill was written by the Democrats in the house tailored on Obama's Goals. Per Barney Frank, the legislation included the following provisions: 1. Change the bankruptcy law to allow judges to modify the mortgages of distressed homeowners, reduce the loan to the propery value. This was fiercely objected by the republicans. Obama wanted to include this provision in his new stimulus package but feared it would derail the overall legislation. 2. Barney Frank would provide legal protection to lenders who reduce interest rates or otherwise modify the terms of troubled loans for homeowners. 3. The package would give Treasury Secretary Geithner the authority to use funds from the finanical bailout program to provide incentives to the lenders to modify troubled loans. This bill would give the Federal Housing Administration the authority to bar some lenders from its programs. That move would be aimed at predatory lenders. Government take over!!! So why did Obama veto when it incorporated everything this man wants to use to take total control of the country by controlling the people, eliminating more jobs. He and his administration believe this bill was what Americans want!!!! SO KOOL-AID DRINKERS, DO YOU STILL BELIEVE HE IS LOOKING OUT FOR YOU???

October 08 2010 at 3:14 PM Report abuse +1 rate up rate down Reply
mrtaxattorney

This proves again that obama is for big banks and big business- not the hard working taxpayer

October 08 2010 at 2:39 PM Report abuse rate up rate down Reply
1 reply to mrtaxattorney's comment
tenderlies1

Well MrTaxattorney, that would depend on what shoes you happen to be wearing. Those of you that seem to be faring fairly well want to blame Obama for all this. Those that have themselves in a bind however are feeling a bit of pain right now. They unlike many didn't have the 20% to 30% to pay down on a home and all this creative finacing helped them to have one. Banks were deregulated and they went wild because these were Goverment Guranteed Loans. Obama did do finance reform to stop it but there were millions of these loans made. The Banks were making Loans on a signature, why not if they failed the Goverment got stuck with them. Was it abused by people , why of course it was. Many were trying to struggle to make Loan payments through a Fuel crisis that drove everything up, when their job's left here they had no equity and certainly even if they did with the property valued dropped to half of what it was when they bought no way could they get a loan an no job. You have to have regulation on the financial system at the same time we all don't make 15 to 20 dollars an hour and need some help. I believe Obama is tryin all he knows but this was really bad, I think if he had realised how bad he would have never run for President. But this is going to take time a lot of time and we need that money that Republicans want to give to Corporation who for the past 10 years have none nothing to create jobs and instead have invested in moving our job's over sea's. In my opinion invest here then you get a Tax Break but never a free ride on tax payers, the wealty worry about Tax breaks, while the people would like to have a job and be able once again to pay taxes.

October 08 2010 at 7:44 PM Report abuse +1 rate up rate down Reply
partsautomall

OBAMA IS THE SMARTEST PERSON IN THE WORLD.HE HAS DONE IN 18 MONTHS WHAT ARE ENEMIES COULD NEVER DO.WE WILL BE BEATEN FROM WITHIN.IF YOU DON'T BELIEVE IT YOU ARE EITHER 18 OR ON DRUGS

October 08 2010 at 2:33 PM Report abuse -1 rate up rate down Reply
1 reply to partsautomall's comment
Price Law Office

Actually, Bush accomplished the near-destruction of America by letting the inmates run the jail (i.e., self-regulation under a "greed is good" standard), from which Obama is trying to bring about a recovery. Because the entire financial system nearly failed and remains in near-death mode, he has had to pump money in and tread very carefully to keep what small amount of confidence there is in the system.

October 08 2010 at 3:46 PM Report abuse +2 rate up rate down Reply
reefparts

Do you honestly believe that the housing market was started over built and collapsed in 6-7 years? Both side to blame Bill thought every American should own a home and pushed banks to loan to unqualified buyers. George liked the economy rocketing up on over development and did nothing to stop it. Throw all the stones you want at each other the fact is they both had a hand in it. Obama does not have enough experience to fix the problem

October 08 2010 at 2:19 PM Report abuse +1 rate up rate down Reply
2 replies to reefparts's comment
cleodis4

Can you remember when someone said my administration will be known as the homeowner admin.?

October 08 2010 at 4:16 PM Report abuse -1 rate up rate down Reply
tenderlies1

Well your wrong there Obama is smart enough and using much the same Policy that has been used to bring this Country out of other recessions. What he doesn't have is money and a rather large recession with the addition of 2 War's that continue. To make bad matter worse the Republicans are dragging their feet and filabustering when they need to be working with The President and even Democrats have not supported as they sbould, why, because of their almighty seats in the house and senate

October 08 2010 at 8:17 PM Report abuse rate up rate down Reply
Meadhh

I have a couple of questions that I would like an Obama follower to answer: From 2001 to 2006 - Bush was in charge - unemployment was low - economy was doing great with the GDP. Food Stamps and entitlements were average. From 2006 to 2010 - Democrats in charge of congress - Liberal president the unemployement started to escalate in 2008 and now stands at 9.6% - Debt has tripled, food stamps and entitlements escalate!!! Bush is blamed. 2008 Obama started campaigning and our liberal congress took hold and started the downward escalation of employment and the beginnings of Socialism/Marxism/Communism design for this country.

October 08 2010 at 2:16 PM Report abuse +3 rate up rate down Reply
4 replies to Meadhh's comment
vobox3343

I'm afraid the oppositionists commenting on these boards can't read or understand what it is they read or, their hatefulness has blinded all semblance of what is proper, sane and real.

October 08 2010 at 2:15 PM Report abuse -2 rate up rate down Reply
wielanddi

I wonder what the congresspersons will say about who didnot read thid bill. Too often congressional bills are written by special interst lawyers, and not read by our duly elected representitives before they vote(as directed by the leadership). We are certainly not getting any value out of the current leadership and majority. Real Change, You Can't Count On! Yet!

October 08 2010 at 2:09 PM Report abuse +4 rate up rate down Reply
1 reply to wielanddi's comment
tenderlies1

Thats no surprise you didn't get were we were headed when Bush was President either. Maybe if you had paid attention to waht was going on then we wouldn't be here now and thats a fact

October 08 2010 at 8:41 PM Report abuse rate up rate down Reply
dccwest

Every day, Obama works for the people.

October 08 2010 at 2:01 PM Report abuse -3 rate up rate down Reply
2 replies to dccwest's comment
Dismayed

You can't be a real person who pays attention to what's happening. You need to get your head out of your ______.

October 08 2010 at 4:10 PM Report abuse rate up rate down Reply
tenderlies1

ilkee: You have no idea of whats going on and never have. Go watch TV because your comments provide nothing to the conversation and most likely your parents keep you up

October 08 2010 at 8:44 PM Report abuse rate up rate down Reply
Gene

Why is it that the only Unions with pull are those attach to the Government? Hey what is the Mortgage on the Whitehouse and property?

October 08 2010 at 2:01 PM Report abuse rate up rate down Reply
1 reply to Gene's comment
vobox3343

White house was built for free, I'm sure it's paid for.

October 08 2010 at 2:07 PM Report abuse +3 rate up rate down Reply
dstack9781

thank God we finally have a president who cares about the average family.

October 08 2010 at 1:55 PM Report abuse -7 rate up rate down Reply
3 replies to dstack9781's comment