Mortgage Modification Program a Major Failure
"The Obama administration's flagship effort to help people in danger of losing their homes is falling flat.The mortgage modification program generally reduces the interest rate and extends the repayment term of the mortgage. Banks that are in the program in turn receive taxpayer-funded incentives to participate.More than a third of the 1.24 million borrowers who have enrolled in the $75 billion mortgage modification program have dropped out. That exceeds the number of people who have managed to have their loan payments reduced to help them keep their homes.
Last month alone,155,000 borrowers left the program -- bringing the total to 436,000 who have dropped out since it began in March 2009.
About 340,000 homeowners have received permanent loan modifications and are making payments on time."
Of course, this recent news did not stop delusional bureaucrats from crowing about the many successes of the program.
"Administration officials said their work on several fronts has helped stabilize the housing market. Besides the foreclosure-prevention plan, they cited government efforts to provide money for home loans, push down mortgage rates and provide a federal tax credit for buyers.People in the mortgage modification program are those that made horrible mistakes in buying bigger and more expensive houses than they should have. As difficult as it is for someone to admit a mistake, these people would be much better off by either walking away from their over-leveraged home completely or not making any more payments until their loan balance is below the current value of the house."There's no question that today's housing market is in significantly better shape than anyone predicted 18 months ago," said Shaun Donovan, President Barack Obama's housing secretary.
For now, it is safe to say that even with all of the "incentives" and "tax credits" being given out in order to stabilize housing prices, the Obama Administration's efforts to prop up the housing market are destined to completely fail and will only succeed in increasing the monstrous government debt that future generations of Americans are being saddled with.
Labels: housing market, Mortgage Modification Program, Obama Administration
posted by Tom at
2:34 AM
1 Comments:
I agree with you that to some extent the Home Affordable Modification program did not turn out to be as successful as it was expected to be. In most of the cases, the lenders were not able to modify the mortgages of the borrowers permanently. So, a large number of borrowers opted out of the Home Affordable Modification program. Also, it has been found that a large number of borrowers did not participate in this program through the Government offered incentives to the participating lenders. It has been suggested that the loss of original mortgage documents on the part of the lender was the main reason why the borrowers could not receive a permanent modification and thus, opted put of the program.
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