The foreclosure monster isn’t going away. We are two years into our rescue plans and people are still facing foreclosure. How many?
Foreclosures may reach as many as 7 million mortgages, and an additional 5 million are at risk of default because borrowers owe more than the property is worth, Laurie Goodman, senior managing director at Amherst Securities Group LP in New York, said in a Feb. 17 interview.
“This is a problem of mammoth proportions,” Goodman said. “You can’t throw 12 million people out of their homes, so you need a successful modification program. My fear is that this isn’t it, but I’m highly confident that the administration will continue to iterate until they succeed.”
You can’t throw 12 million people out of their homes? Why not?
Now the Obama administration is looking at banning all foreclosures on home loans unless they have been screened and rejected by the government’s Home Affordable Modification Program (this is the article from which the above quote was taken). This doesn’t seem like a good idea to me. How long would it take for a homeowner to get screened for such a program? In the meantime, what happens to the loan? What happens to the missed payments?
I would like to see the statistics on how many people, who got help avoiding foreclosure, still ended up in foreclosure. Give us the hard numbers. That’s the only way we can see if these programs are working or not. I’m pretty sure we wouldn’t like what we found out.
I’m curious. Have you been through the foreclosure process? How did it work? Have you been through the government’s programs to help you stay out of foreclosure? How did that work out? Please leave a comment. I’d like to hear your thoughts?