Federal Homeowner bail out a bust

United States
July 21, 2010 1:10pm CST
The multi-billion dollar federal program is a bust. It has reportedly not helped even "put a dent in the foreclosures" in this country. 700 billion dollars...for what? Wasted money. Most of the issues being blamed on this is because the " Treasury Department has ignored earlier demands that it set clearer goals for the program." "Treasury is giving mortgage companies too much leeway to decide which homeowners will qualify for a program to reduce the principal balance of their mortgages". " Many of the mortgage debt collectors make more money when they foreclose than they do when helping homeowners." What ever the issues is we just wasted billions. The banks get the federal bail out dollars...plus get to take the house and resell it. This is as bad as TARP. Money just wasted and thrown away. What do you think should be done about this program and the 700 billion wasted? What about the politicans who put it in place and the Treasury department?
1 person likes this
2 responses
dboman
@dboman (457)
• United States
21 Jul 10
Dang. You beat me to it. I just read this on National Review. This is just another example of inept management and governing by the Obama administration. HAMP (Home Affordable Modification Plan) is what this investigator is referring to. HAMP is part of TARP, obviously a useless part. I think one of the keys to this is something the investigator said "Treasury has rejected calls to announce publicly any goals or performance benchmarks for HAMP or its related initiatives concerning how many homeowners it actually expects to help stay in their homes, despite repeated recommendations that it do so." A lack of transparency? NO! Not the Obama administration! Also, the investigator stated "re-defaults will indeed be a problem." So what is the government going to do when re-defaults begin to happen? Spend more money? Reward irresponsibility yet again?
lilwonders
@lilwonders456 (8214)
• United States
22 Jul 10
Alot of the problems with the re-defaults were how the bank handled it. For most of those poeple they did not motify their loans. they simply put the amount they were behind on a repayment plan. So they did not lower their mortgage...just gave them 6 months to not only pay their mortgage...but pay the back amount to. Which of course if the people could not afford their payments...who were htey going to pay that AND the back due amount. But the mortgage companies did this so they could "claim" they were helping people and get their hands on the federal money. The ripped us off. I know around here we had a big wave of foreclosures about 1 1/2 ago from the subprime mortgage mess...now we are seeing a bunch because of job loss. People are loosing thier jobs, not finding a new one, or the new job pays less so they can no longer afford their mortgage. The big issue I see with this program is you don't qaulify if you owe more than your house is currently worth. Well the housing market has taken a HUGE dive. So anyone who bought 3-5 years ago when the market was booming owes more on their house than it is currently worth. So they don't qualify. Also if you are currently unemployed or "underemployed" you don't qualify. So lets face it...most people don't qualify for this program. So why are we wasting billions on a program that does not benefit anyone but the mortgage companies? not that I was in favor of ANY of the bail outs in the first place.
dboman
@dboman (457)
• United States
22 Jul 10
I wasn't aware of the disqualifications involved. That would explain why my father was unable to qualify...he owes more than it's worth. Why are we wasting billions? I think you know the answer to that. When you have a problem, don't think about fixing it in fiscally responsible ways...just THROW MONEY AT IT ASAP! Duh.
scarlet_woman
@scarlet_woman (23463)
• United States
22 Jul 10
they do make more money when they foreclose-until they have too many houses they can't sell.that's been going on where i live-they could work with these people to keep them in their homes rather than be stuck with no payments at all,but they won't. and the sad thing going on in my state is not only the banks,but the deluded realtors still hoping they can get 700K for a home worth 150K.and they're still building new houses which sit alongside the foreclosures standing vacant. they should tell the banks number one-stop charging unreasonable rates and late fees or lose their bailout ability,period.and then keep an eye on them.they keep disobeying the government,start fining them like they do us.see how they like their properties sold at auction. and number two-properties need a realistic re-assessment across the board. there's one bedroom condos selling near me for 500K..i mean come on. i have to say tho,whoever came up with the idea of selling people their apartments basically must be rich.