Nearly 50 percent leave Obama mortgage-aid program

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Nearly 50 percent leave Obama mortgage-aid program

By MARTIN CRUTSINGER, AP Economics Writer Martin Crutsinger, Ap Economics Writer – 1 hr 41 mins ago

WASHINGTON – Nearly half of the 1.3 million homeowners who enrolled in the Obama administration's flagship mortgage-relief program have fallen out.

The program is intended to help those at risk of foreclosure by lowering their monthly mortgage payments. Friday's report from the Treasury Department suggests the $75 billion government effort is failing to slow the tide of foreclosures in the United States, economists say.

More than 2.3 million homes have fallen into foreclosure since the recession began in December 2007, according to foreclosure listing service RealtyTrac Inc. Economists expect the number of foreclosures to grow well into next year.

"The government program as currently structured is petering out. It is taking in fewer homeowners, more are dropping out and fewer people are ending up in permanent modifications," said Mark Zandi, chief economist at Moody's Analytics.

Besides forcing people from their homes, foreclosures and distressed home sales have pushed down on home values and crippled the broader housing industry. They have made it difficult for homebuilders to compete with the depressed prices and discouraged potential sellers from putting their homes on the market.

Approximately 630,000 people who had tried to get their monthly mortgage payments lowered through the government program have been cut loose through July, according to the Treasury report. That's about 48 percent of the those who had enrolled since March 2009. And it is up from more than 40 percent through June.

Another 421,804, or roughly 32 percent of those who started the program, have received permanent loan modifications and are making their payments on time.

RealtyTrac reported that the number of U.S. homes lost to foreclosure surged in July to 92,858 properties, up 9 percent from June. The pace of repossessions has been increasing and the nation is now on track to having more than 1 million homes lost to foreclosure by the end of the year. That would eclipse the more than 900,000 homes repossessed in 2009, the firm says.

Lenders have historically taken over about 100,000 homes a year, according to RealtyTrac.


http://news.yahoo.com/s/ap/20100820/ap_on_re_us/us_mortgage_aid



If you're sitting in the president's chair, I think you realize that a lot more has to be done

to stop this --

Underneath all of this was, of course, simply another capitalistic finance scheme of greed

by the few! They're wealthier now while hundreds of thousands are suffering loss of homes!

These are simply amazing figures that DU should be paying attention to!!

[w4rma]

1. Of course they are. DLCers wrote the legislation and tried to get anything useful removed. (nt)

[Mimosa]

2. My heart breaks for all those people.

People cannot help what the economy has done to them.

[Kurovski]

3. Banksters suck.

A family member is reapplying for a third time.

Where'd all that money go? are the banksters gambling on the stock exchange?

...I crack me up...

[defendandprotect]

6. You're somewhat correct .... don't know about these specific funds ....

but Sen. Bernie Sanders relates that when bailout money went to the banks instead

of getting back in business, the borrowed from the FED at 0% pretty much . . . .

and, then, instead of lending the money out to Main Street, they invested it in

government securities at 3.5% and 4% -- !!!

We don't know how much or exact details because FED won't tell!!


Too much of the assistance that has been passed gets pushed thru corporations!!

[katandmoon]

4. I guess we have to take this off the List O'Accomplishments.

[Riley18]

5. There is a list? I don't think it could be very long.

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7. k