WASHINGTON -- President Barack Obama conceded Friday that his administration and lawmakers disagree on some of the details of the $825 billion economic recovery package being crafted in Congress, but said the legislation is on track to be completed by next month's Presidents Day weekend.

"We are experiencing an unprecedented, perhaps, economic crisis that has to be dealt with and dealt with rapidly," Mr. Obama said in brief remarks to reporters before a meeting with Congressional leaders from both parties. "Frankly, the news has not been good. Each day brings, I think, greater focus on the problems we're having, not only in terms of job loss but also in terms of some of the instabilities in the financial system."

Senate Minority Leader Mitch McConnell (R., Ky.) agreed that lawmakers should be able to get the stimulus legislation to Mr. Obama by mid-February, but told reporters that Congress will have to show "a good deal of restraint" to keep the bill "timely, temporary and targeted."

Friday's meeting at the White House comes amid mounting partisan division over the recovery package's components, with Republicans complaining that the plan is overloaded with unnecessary spending that will do little to break the economy out of its slump. Mr. Obama has pushed for bipartisan support of the package, but early indications suggest it could pass Congress with slim Republican support.

"I know that it is a heavy lift to do something as substantial as we're doing right now," Mr. Obama said. "I recognize that there are still some differences around the table and between the administration and the members of Congress about particular details on the plan."

GOP leaders presented their plans to Mr. Obama on Friday, though, saying that the situation is moving too rapidly to wait for next week.

Obama Says Stimulus Plan on Target

President Barack Obama, meeting with Congressional leaders at the White House, says an aggressive stimulus plan is on target for passage by mid-February. Video courtesy of Reuters.

The GOP plan, put together by House Republican Whip Eric Cantor of Virginia, includes proposals to reduce the lowest individual tax rates, allow small businesses to take a tax deduction equal to 20% of their income, and give home-buyers who can make a minimum down payment of 5% a credit of $7,500. House Republicans also said the bill should include a provision precluding any tax increases to pay for new spending.

"I'm concerned about the size of the package and I'm concerned about some of the spending that's in there. How do you spend hundreds of millions of dollars on contraceptives, how does that stimulate the economy?" House Republican Leader John Boehner of Ohio told reporters after the White House meeting.

The White House took issue with complaints that spending included in the legislation that passed the House Appropriations Committee on a party-line vote late Wednesday wouldn't stimulate the economy. Office of Management and Budget Director Peter Orszag told Senate Budget Committee Chairman Kent Conrad (D., N.D.) in a letter that 75% of the package would be spent over the next 18 months.

"There's no question that the president believes that the bill is stimulative," said White House spokesman Robert Gibbs. "Absolutely, it's stimulative."

According to a senior Republican congressional aide familiar with Friday's meeting, the president made it clear that the House bill is one that he supports. Republicans voiced their concerns generally about the level of spending in the stimulus plan, and in particular a provision that would in effect give a tax refund to lower-income Americans who don't currently pay any income taxes, the aide said. The president said he was committed to the refund remaining in the package.

The aide said Mr. Obama indicated he might be willing to consider including more financial assistance targeted at small-business owners than is currently included in the plan, and urged the Republican leaders to work with Lawrence Summers, who heads the National Economic Council.

Obama makes remarks on the economy during a bi-partisan meeting with members of Congress.

Mr. Obama will travel to Capitol Hill early next week to meet both Republican caucuses. Mr. Gibbs declined to predict how much GOP support the legislation would garner, or say whether the White House would be disappointed if few Republicans back the bill.

"The legislative process, as we all know, is a long and winding road," Mr. Gibbs said.

In addition to the stimulus package, the White House is hammering out its plan for the Treasury Department's rescue of the financial sector, which could exceed the $350 billion released by Congress last week. The administration has said it will devote $50 billion to $100 billion to addressing foreclosures. It is also considering ways to purchase banks' bad assets.

Mr. Obama also took aim at companies that receive government assistance from the Treasury, saying that accountability and transparency will be critical in his administration's approach to the financial crisis.

"Some of the reports that we've seen, over the last couple of days, about companies that have received taxpayer assistance, then going out and renovating bathrooms or offices or in other ways not managing those dollars appropriately, the lack of accountability and transparency in how we are managing some of these programs to stabilize the financial system, and a recent [Government Accountability Office] report that speaks to some of the problems of waste in our government -- those all have to be part and parcel of a reform package, if we're going to be responsible in dealing with this economic crisis," the president said.

Mr. Obama began receiving daily briefings on the state of the economy this week, a reflection of the recession's prominence in his agenda. He also plans to sit down with Treasury Secretary-designate Timothy Geithner on Friday, and hold another session on the economy at the White House on Saturday.

The Associated Press

4:19 PM EDT, October 30, 2008

ALBANY - New York foreclosure filings fell 10 percent during the third quarter, reversing a yearlong trend, according to new figures.

State officials and data trackers attribute the improvement in part to a new lending reform law giving New Yorkers an extra 90 days to work to save their homes. But they warn that the drop in foreclosures could be just a temporary reprieve.

That's because other states showed a drop in foreclosures soon after they implemented similar laws that were followed by sharp increases when the initial grace periods expired.

"Unfortunately in many of these cases what you're seeing is just delaying the inevitable," said Rick Sharga, senior vice president of marketing at foreclosure listing service RealtyTrac Inc., which compiled the figures released Thursday by the state Banking Department.

New York's lending reform law, enacted Sept. 1, requires lenders to wait 90 days before starting foreclosure proceedings. The idea is to give homeowners more time to figure out how to best cope with their debt.

Even though it was only in effect for one month, state officials say the new law likely had a lot to do with the decline in foreclosures. There were 14,477 foreclosure filings in the third quarter that ended Sept. 30, compared with 16,025 in the prior quarter.

State Banking Superintendent Richard Neiman said many lenders likely pulled back on their foreclosures before the law took effect. But he was cautious about reading much into the latest data.

"Let's wait to see how the data comes out for the next quarter," he said.

Foreclosure figures for the quarter ending in December will be more telling because they will capture foreclosures filed after the 90-day waiting period established by the new law.

Other states that have adopted similar laws saw sharp increases immediately after the initial waiting periods were through. For example, the foreclosure rate in Massachusetts leveled off last summer after that state adopted a 90-day waiting period. It spiked 465 percent after the initial period expired, Sharga said.

"The likelihood is the majority of people are still going to wind up in foreclosure," he said.

Earlier this month, RealtyTrac reported that national foreclosure filings in September were down 12 percent from August, with much of the decline attributable to waiting-period laws. In California, for example, lenders are now required to contact borrowers at least 30 days before filing a default notice. A similar law in North Carolina gives borrowers an extra 45 days.

But it's unclear how effective they'll be in stemming the tide of foreclosures. Most states, including New York, lack regulations requiring the lenders to restructure the loans, Sharga said.

"They're missing the mechanism to really solve the problem," he said.

The feuding couple living in Brooklyn's infamous "War of the Roses" house, where they live in a court-ordered split home, is facing foreclosure on the building.

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Even for homeowners who have weathered the subprime mortgage debacle, the epidemic of foreclosures in Jamaica, South Ozone Park and Rochdale has created another major headache - homes are now haunted by drug dealers and squatters.

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I have started doing some research on this subject. I mean deep research and I have contacted some local and some not so local banks. I have also contacted some Government agencies who oversee these homes.

It seems that when the banks finally foreclose on a home, (It takes non payment of over 1 year to the bank on the mortgage to be foreclosed on). If the home owner keeps paying the property taxes and just stops paying the bank, it seems the banks (especially now) don't want to deal with having to take the home back.

REO's or "Real Estate Owned" is what the bankers call the foreclosed homes and properties on their books and in their possession. They give the listing directly to a Real Estate Agent in their area who specializes in foreclosures. I have found the name of this individual after many phone calls and conversations with bank personnel.

Do some google searches for REO's in your home town and you will be amazed at what you will find.

More to come from my experiences as I start to make more and more calls and gain contacts in this area.

bc

I'm also in the market for a home and I'd like to know why it is that if all these banks have such a large inventory of foreclosed or close to foreclosure homes on their books. Why is it that the public has to pay to view the listings and bid on any of the homes. There are many young couples in the market for their first home and are in financially able to purchase these homes and bail out the banks somewhat. Why is everything so secretive and hush, hush..?

db