Wednesday, February 9, 2011

More talk, less action for underwater homeowners

A government program intended to help hundreds of thousands of underwater homeowners is off to a slow start.

Since its September launch, only 38 homeowners have refinanced mortgages through the FHA Short Refinance program, backed with $11 billion in federal funds. The Federal Housing Administration has said the program could eventually help 500,000 to 1.5 million borrowers.

The program requires mortgage owners to forgive at least 10% of a borrower’s unpaid principal so that the loan can be refinanced into an FHA loan at a lower interest rate. The goal: keep homeowners out of foreclosure even if they owe more on their homes than they are worth.
http://loanworkout.org/2011/02/no-big-rush-on-help-for-underwater-home-loans/

A program Obama promised would help hundreds of thousands of underwater homeowners has refinanced only 38 mortgages since its September launch!

I'm sure a lot more than 38 political insiders and Obama cronies were given cushy government jobs administering this failed and obviously wasteful program - - $11 billion in funds committed to assist only 38 homeowners so far!

No comments: