The government launched its Making Home Affordable plan this spring, with news that lenders were clammering to sign up. Problem is, only 14 lenders have active contracts to participate in this program. Signing up for this program is by choice.
The head haunchos at the banks/lending institutions/mortgage companies have to decide that the program is worthwhile for them to join up. While this may save tax payers money, its certainly not showing the effectiveness of the program. Many of my clients have tried themselves to qualify for this program, completed the necessary documents and filed them with their mortgage company, only to be denied a modification.
There are currently over 250 financial institutions that have recieved funds from the EESA (Emergency Economic Stablity Act), and still the number of homes lost continues to climb. If you ask me, if your taking my money to bail yourself out, you should be subject to more strict guidelines on how that money can be used, and programs/actions you should be required to impliment to keep these foreclosures from happening. Billions of dollars were given to banks, that STILL find themselves in Bankrupcty. Where'd our money go? Of course, I don't want to shout this out too loudly, I'd be out of business, but if the government is going to "warn" homeowners about companies like mine, who actually ARE finding and negotiating solutions with the financial institutions, they should be taking over my job, and doing what I do.
So far all I see is whole lot of money being spent on programs to assist homeowners, with many homeowners finding no true help, and more money flying out of the windows, not to mention precious time being wasted for homeowners who truly want to resolve their foreclosure default matter.
In closing I sincerely hope that this program works better than the program enacted last year to help homeowners. Hope.gov took in 440,000 applications last year, spent $271 milllion taxpayer dollars, and successfully helped 25 homeowners! That's a cost of $10,840,000 per home saved! I'm no pessimist, but I doubt we can afford this! Kudos to the efforts being made, but can we streamline this a little better, and impliment more stringent policies? The homeowners are what need saving, if the lender's had bad business processes and fail, isn't that the consequenses of working in a free trade environment?
View other blogs I've written about foreclosure, short sales, & loan modifications here. Send me a comment on Twitter! @RealHelp4You
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