Sunday, August 22, 2010

Federal mortgage aid effort struggles

This article in the Review Journal points out the failure of the governments efforts to help with the housing crisis. It states,
Nearly half of the 1.3 million homeowners who enrolled in the Obama administration's flagship mortgage-relief program have fallen out.

The program is intended to help those at risk of foreclosure by lowering their monthly mortgage payments. Friday's report from the Treasury Department suggests the $75 billion government effort is failing to slow the tide of foreclosures in the United States, economists say.

The bailout and this mortgage-relief program have failed miserably. I ask why didn't the government use the bailout money to give vouchers the mortgage troubled people. These vouchers would be payable to the banks if the bank refinanced the loan.

This way the banks would still have received the money, but only if they refinanced the mortgage. As the mortgages were refinaced, the foreclosure rate would have been stopped or at least slowed. The people would have saved their homes.

If the government was going to give the money away, at least they should have made sure that it would accomplish something.

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