"The government's mortgage assistance program has helped just one in four of the 2.7M homeowners who applied to the program. The bulk of the applicants either failed to qualify for HAMP or were disqualified after initially being accepted into the program. As a result, just $1B has been spent on HAMP, a far cry from the government's initial estimate that $75B would be needed for the program."
So do we see this as being successful?
I was reading another article which pointed out that whenever the government tries to remove the consequences of the risk people/corporations (yes, there is risk when you purchase a home) take they create a more disastrous bubble within the economy, than the normal cycle bubbles we will always see.
While I believe the economy will be able to withstand the bubble that has probably been created from all of the recent government activity, we are going to see this pop later on, and it isn't always in a predictable sector that the bubble manifests.
3 weeks ago
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These programs are a joke. In some ways I am glad only $1B has been spend but that means there is a big question mark as to what is happening or going to happen with the other $74B? My hope is that it is just absorbed back into the budget but we ALL know how that really goes.
As for the way the program works... well it's a joke. There are so many holes that they are able to deny anyone AFTER stinging them along long enough to have caused serious default even if the person complied exactly with what they were told to do.
If you are reading this and considering a modification... do NOT do anything unless you have talked to a HUD agent and, even then, make sure this is the absolute last resort.
I know a family that the husband lost his job (layoffs) and his wife was on medical rest because of a really hard pregnancy and they tried for a modification. After being strung along for 2 years on "trial payments" they were denied and lost their home.
This program made a lot of politicians look like heroes but it has honestly been more of a detriment than a help to America.
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