Why are more than half of the homes rescued by the loan modification program now in foreclosure again?
Question by Obama – Wimp in the White House: Why are more than half of the homes rescued by the loan modification program now in foreclosure again?
http://www.bloomberg.com/apps/news?pid=20601087&sid=aVYxPZ56vjys
So can you really say that this program is successful?
Best answer:
Answer by Shovel Ready
Deadbeats are deadbeats.
What do you think? Answer below!
Simple really. Many of those who needed modification did so because they lived beyond their means. Allowing for a lower mortgage payment only spurred them to live even further beyond their means. I’m guessing they feel the government will save them again.
The people who didn’t learn from the first rescue repeated the same errors that got them into their situation. These people don’t need loan modifications they need financial behavior modifications.
You cant teach someone who doesnt know how to manage their money, to manage their money, by giving them a freebee. It was irresponsible to do so.
After the effective nationalization of Fannie Mae and Freddie Mac the government is now the single largest holder of failing and toxic mortgage backed assets. SO, what is the government going to do with this mess? Take it over, of course. Congressional hearings are going to start… here soon on the whole mess –
http://www.cnbc.com/id/35998129
This is a good piece. Here is the synopsis and link to the full article. all the gimmicks in housing is only delaying the inevitable…which makes the end result even worse.
http://www.ritholtz.com/blog/2010/02/here-come-the-put-backs/