Saturday, January 2, 2010

Government Backed Loan Modifications Not Working - May Have Made Things Worse

Did Mortgage Relief Program Make Housing Crisis Worse?

Published: Saturday, 2 Jan 2010 | 11:46 AM ET
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By: Peter S. Goodman
The New York Times
The Obama administration’s $75 billion program to protect homeowners from foreclosure has been widely pronounced a disappointment, and some economists and real estate experts now contend it has done more harm than good.
Since President Obama announced the program in February, it has lowered mortgage payments on a trial basis for hundreds of thousands of people but has largely failed to provide permanent relief.
Foreclosure
Critics increasingly argue that the program, Making Home Affordable, has raised false hopes among people who simply cannot afford their homes.
As a result, desperate homeowners have sent payments to banks in often-futile efforts to keep their homes, which some see as wasting dollars they could have saved in preparation for moving to cheaper rental residences.

2 comments:

  1. Did Mortgage Relief Program Make Housing Crisis Worse?
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  2. Mortgage relief programs helped people stay in the house during the downturn until property prices went us... Private Money Lender

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