Much like the rest of Obama’s policies, when political hacks with no actual knowledge of the issue write the legislation, things do not go well
The Obama administration’s flagship effort to help people in danger of losing their homes is falling flat.
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.
I wonder why
A major reason so many have fallen out of the program is the Obama administration initially pressured banks to sign up borrowers without insisting first on proof of their income. When banks later moved to collect the information, many troubled homeowners were disqualified or dropped out.
Having people get homes who couldn’t provide proof that they could actually, you know, pay for them was one of the big reasons the people needed to enter the program in the first place, so, yeah, good idea, make sure banks still couldn’t insist on proof that the borrower wasn’t an unemployable community organizer living in Mom and Dad’s basement. Now that the requirement is there, even fewer people enroll. It’s almost like they don’t want people to know that they make $30K a year and were dumb enough to buy a $300K home.
Even after their loans are modified, many borrowers are simply stuck with too much debt — from car loans to home equity loans to credit cards.
Hey, if it is good enough for the Democrat led federal government…….
“The foreclosure-prevention program has had minimal impact,” said John Taylor, chief executive of the National Community Reinvestment Coalition, a consumer group. “It’s sad that they didn’t put the same amount of resources into helping families avoid foreclosure as they did helping banks.”
Some people belong in apartments. Or, at least homes that match their income.
