Foreclosure Relief: Good & Lousy

Inquiring minds are reading how President Obama HAS united the country:

Criticized both by those who argue for more aid and those who think the lackluster program only delays a needed bank reckoning, HAMP stumbles along, more often simply prolonging the pain of foreclosure than providing a solution. The dismal new housing numbers — sales of existing homes are 27% lower than a year ago, new-home sales have fallen even more — underline just how little demand there is for all the properties that banks are foreclosing on.

Not exactly what our President probably wanted, but hey, he can still say it is a campaign promise he kept.

And it seems the electorate is just now beginning to figure out that HAMP is being used by lenders to make sure that homeowners are making payments for as long as possible:

In extending the process, foreclosure relief in many cases simply stretches out borrowers’ slow bleed of resources. By keeping borrowers in limbo while letting lenders delay repossessing houses they can’t sell, foreclosure aid is now benefiting borrowers less than the lenders who created the mortgage mess. For lenders, mortgage modification is the waiting room in the mortuary, a convenient place to hold borrowers while the banks deal with the overflow of houses already repossessed.

This is going to be a very interesting campaign season. Uneasy is the head that wears an incumbent crown.


One Response

  1. […] this graph on the dreaded double-humped camel. This entry was written by Bobbo and posted on September 1, 2010 at 12:02 AM and filed under […]

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