Experts: $75 billion effort to fight foreclosures has hurt some homeowners
by: Peter S. Goodman
New York Times
Jan. 1, 2010
The Obama administration's $75 billion program to protect homeowners from foreclosure has been widely pronounced a disappointment, and some economists and real estate experts now contend it has done more harm than good.
Since President Obama announced the program in February, it has lowered mortgage payments on a trial basis for hundreds of thousands of people but has largely failed to provide permanent relief. Critics increasingly argue that the program "Making Home Affordable", has raised false hopes among people who simply cannot afford their homes.
As a result, desperate homeowners have sent payments to banks in an often-futile efforts to keep their homes, which come see as wasting dollars they could have saved in preparation for moving to cheaper rental residences. Some borrowers have seen their credit tarnished while falsely assuming that loan modifications involved no negative reports to credit agencies.
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Monday, January 4, 2010
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Very interesting article. It's hard to say whether the gov't did the right thing or not. What do you think?
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