Sputtering Obama foreclosure program expelling more homoeowners than it's helping

[Bluebear]

The number of new homeowners entering the Obama administration's signature foreclosure-prevention effort dropped 35 percent to a one-year low in June, the third straight month during which the number of new enrollees was surpassed by the number of homeowners bounced from the program, newly-released government data show...

The program allows homeowners to permanently reduce their monthly payments after successfully completing a trial period, typically three months, which requires them to stay current on their mortgage and provide documentation substantiating their financial situation.

But once homeowners enter HAMP, there's still no guarantee they'll benefit from the possible five years of reduced payments. About 51,000 homeowners received such "permanent" modifications in June, up slightly from May but significantly down from the highs reached in March and April, when an average of about 64,000 homeowners were receiving permanent relief each month, according to Treasury data.

Instead of either temporary or permanent relief, an increasing number of distressed homeowners are being kicked out of the program. Nearly 94,000 homeowners were bounced from HAMP in June, compared to 66,000 homeowners who were granted some kind of payment relief. It's the third straight month more homeowners were kicked out of the program than entered some phase of it...

The soaring number of cancellations -- more than 529,000 -- means that, through June, two out of every five struggling homeowners who entered the program with a promise and expectation of permanent relief were ultimately expelled.


http://www.huffingtonpost.com/2010/07/20/hamp-june-foreclosures-recovery_n_653310.html

[napi21]

1. The problem isn't the program, AFAIK, it's that the homeowners

who are entering the program are mostly unemployed. The program would help the people who were hit by an interest rate reset, but if they don't have a job, they dont have the $$ to pay for reduced payments either!

[Skittles]

4. so

the program set up to help homeowners, many in distress due to the job market, did not take into account....unemployment? :o

[napi21]

10. How could it? How can you pay an obligation without any money?

II can't imagine any scenario where that can happen.

[Foo Fighter]

13. Can't imagine a scenario?

Does the Wall Street Bailout ring a bell?

[napi21]

15. Even a bailout the size of WS wouldn't ve been big enough to bail out

all the homeowners who faced foreclosure.

[Bluebear]

17. Well the banks DID get $75 billion to help homeowners: WHERE did it go?

[Bluebear]

6. Not at ALL accurate. Multiple people are told they "didn't send their papers on time"

although they have, and numerous times. People ARE making their payments on time, and being told after 3-6 months that they "really don't qualify". The program is a flop.

[laughingliberal]

14. That's how I understand it. And I know some who have gotten that run around. nt

[Skittles]

2. what am I missing

why are they being "expelled"?

[Bluebear]

5. An example:

Green and his partner, Lionel Bashore, are representing Oakland County resident Tracey Briggs, who has been stuck in a seemingly never-ending loop of disappointment in her quest to save her family’s home of 16 years.

Briggs thought she had everything in order after sending her bank her application for HAMP and all the appropriate paperwork multiple times: She finally got approved for a three-month trial mortgage modification, and after making all the payments on time, she was sure she’d be approved for permanent modification and save her family’s home.

Unfortunately, that wasn’t the case: The Briggs family is now facing foreclosure.

“When I made the final payment for the three-month trial period, I received a letter stating that foreclosure action will be taken,” said Briggs, who said when she contacted her loan servicer, she was told once again that they were missing some paperwork.

“What’s important is when they put her through the quote, unquote ‘trial period,’ she made all the payments on time. When she was approved, she had already provided all the necessary information; they had received that information — yet they gave no explanation why she was being denied,” said Green.

http://www.candgnews.com/Homepage-Articles/2010/03-10-2010/Homes-federal-MHA.asp

[Skittles]

7. sounds like they were unprepared for the "staggering numbers"

hard to believe

[depakid]

3. Should have gone with what Dean Baker and others advocated

Right to rent with a right of redemption after 5 years. Wouldn't have cost the treasury a cent.

But since it wouldn't have pleased the banksters... so we couldn't have effective progressive policy for main street (and incidentally- for the rest of the banks, credit unions and homeowners who value has been adversely affected too).

[DebbieCDC]

8. Another epic fail

[HughMoran]

9. Yep

thread after thread

[Foo Fighter]

11. IOW, the program is working as expected. n/t

[Kalun D]

12. Exactly

When the bankers own the White House, what do you expect.

[Name removed]

16. Deleted message

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[Starry Messenger]

20. Tu es betes comme tes pieds

[scheming daemons]

18. And obviously, BlueBear, it was evil Obama's intent to throw people out of their homes

Because he's evil like that.


:eyes:

[Name removed]

21. Deleted message

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[The Northerner]

19. How saddening