Skip to comments.Dropouts rise in gov't loan modification program
Posted on 05/17/2010 9:29:49 PM PDT by Nachum
WASHINGTON The number of homeowners dropping out of the Obama administration's main mortgage assistance plan is growing, and is now almost equal to the number who have received permanent relief.
The Treasury Department's report on Monday was the latest evidence of problems in the administration's $75 billion program. While officials insist the program is helping the housing market turn around, critics say it is merely delaying an inevitable surge in foreclosures.
More than 299,000 homeowners had received permanent loan modifications as of last month, Treasury said. That's about 25 percent of the 1.2 million who started the program since its March 2009 launch. They are paying, on average, $516 less each month.
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i dunno why the left think enslaving the poor with more debt is a good idea. The poor should save money, not go into debt
The list, ping
The problems is you cant get the poor out of the debt. Which is what they are trying to do.
In the past if you fell upon financial hardship, you can sell your house usually for more than when you bought it or just break even. Houses for many years never went down in value. So this wasnt a problem 10 years ago because if you lost your job and take a less salary, you can sell your house and get a smaller place you can afford.
Now with house values dropping over 40-50% in some locations...you can’t do that anymore. You lose your job...you are stuck. There is no other option but foreclosure.
I’ve said it before and I’ll say it again...the economy WILL NOT RECOVER until jobs are created and the unemployment numbers fall. When people have money in their pockets, they will pay the bills. But when you are unemployed and your bank account has a zero balance...you just have to let the bills go.
is it really the governments job to prop up the housing/banking/auto/appliance/etc. industry?
The real problem is a large portion of them were flippers and speculators looking at the properties they were investing in as their lottery tickets. Many of them buying way beyond their means figuring they were all the next Trump. Now the market has turned against them. They rode the bailout wagon to buy sometime, but now are going to walk away as it will take years, possibly over a decade to ever break even. Most can’t even afford the monthly payment on their normal income. So now we enter the long drawn out tide going out period where everyone that was swimming naked are exposed and it’s not pretty.
My niece did this right before the big crash in Florida. Sold her house for almost $300,000. Paid about $125,000 less than 2 years before. Turned around and bought 3 lots and built a new $550,000 house.
Then came the crash. Had planned on flipping the 2 extra lots, but sold one at a loss just to keep up payments on the house and the other couldn’t sell.
Now, she hasn’t made a payment in 6 months and is waiting for the eventual eviction. If she had stayed in her original house, she would be OK.
Some here think people are just not paying their bills cause they are bums. Truth is that no job, no income, plus bills equal disaster.
When I log on there's a message to call for assistance. They tell me I'm enrolled in their Obama plan and I can make a reduced payment for 3 months to find out if I'm eligible...I've never been late with a payment and I didn't apply for their scam and I can't get off...
Less young people re-educated in Marxist Universities?