HAMPs Untimely Rebirth
Remember that program, you know, the one that was supposed to help every underwater borrower all over the country but ended helping under 1 million? What was that called again? Oh yeah, HAMP. Right, yeah, that one.
Well, despite its disappointing history so far the government has decided to drop some more money down the chute. They’ve decided to increase the incentive to lenders to provide principal writedowns on underwater borrowers. The Treasury will now pay from 18 to 63 cents on the dollar, which is almost triple the rate now.
And why are they doing this? I’d assume to try and get more people to participate in the program, since the average homeowner saves $500 a month using it. But I’m going to guess there’s also way too much ego involved. I mean, who in Washington wants to admit that a program he supported is failing? (Personally I’d rather not be blamed for increasing how much money it wastes, but I don’t need to be re-elected.)
So if the politician throw more money at it they think it’ll suddenly spring to life. I hate to break it to them but the program doesn’t need a rebirth, it needs a funeral.
Let’s put the nails in the coffin, focus our energies on short sales and try to accomplish things that actually make a difference. I’m already well on my way and deals are being completed all the time. You can get in on this to anytime you like, so why wait?
Unless, of course, you’re one of those hampers, I mean HAMPers.
Are you?
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Steve
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http://www.facebook.com/jerryapowers Jerry Powers
