Scrapping HAMP For Good
I promised ya’ll not that long ago that I wouldn’t speak about H**P ever again seeing that the program was obviously dead in the water and that it was obvious to everyone with brainwave activity that the program should be scrapped. And for the last few months I’ve kept my word. But today I’m posting more of a “P.S.” to that article so I don’t think it really counts if I mention the latest bit of news.
Three Congressman (none of whom are from Nevada, Arizona, or Florida by the way) have officially proposed to end the program. The way they put it when proposing the bill to can the program: the failure of HAMP “has had the most devastating consequences” for everyday borrowers.
A very succint way of putting a very complicated issue. On paper when the program was put forth it sounded like a really logical plan. Just encourage banks with financial incentives to offer mortgage workouts for borrowers to give them a great chance to stay in their homes. It turns out that the program not only delayed the inevitable, but cost far more than all of the foreclosures it prevented would have cost.
Just over half a million loans have been permanently modified. This is less than 10% of the number that was claimed would be the target by the end of 2010. Hundreds of thousands of borrowers are actually in a much worse situation after failing in the program. Those foreclosures will now end up costing tax payers way more than the program has already cost to date.
So it seems only logical that Congress would decide way too late to cut losses and pull the program’s plug. About time is a major understatement.
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http://www.shortsaleology.com Cory Boatright
