I wrote in this blog some time ago about the Hope for Homeowers plan, which went into effect on October 1, 2008 with billions in government funding. $320B, to be exact.
As of last month, April, an amazing stat came out. Brian Sullivan of Fox News reported that to date the program has successfully helped modify the mortgages of 1US Homeowner. And we know, ‘One is the lonliest number that you’ll ever see’. Especially with that sort of funding behind the program.
There are a lot of reasons for the lack of effectiveness of this program; including that the existing mortgage holder would have to discount the note to 90% of the current value of the home to qualify for the FHA
endorsed refinance. That has since been modified to 97% of the current home’s value. Still, mortgage servicers do not want to discount the notes and take real losses that easily.
But, look on the bright side. With the extreme effectiveness of this Hope for Homeowners program and the billions in taxpayer funds that were allocated to the program – well, government healthcare is coming for us all. We’ve got that going for us.
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