More than 40% of homeowners have dropped out of Obamaâ€™s mortgage aid program. This is the 2nd month with more people at risk of losing their homes than people receiving mortgage aid. This could mean more foreclosures in the near future.Â Â
According to the News Tribune, more than 40% of the 1.3 million homeowners enrolled in the Obama administrationâ€™s mortgage relief effort have left the program. Mark Zandi, chief economist at Moody’s Analytics said,
“The program really hasn’t helped a lot of people, or at least not nearly as many had been hoped for.â€ He also stated that about 2 million homes are likely to be sold over the next 12 to 18 months as foreclosures or short sales. Borrowers claim the main cause behind the dropouts is bad record-keeping on the part of the banks.Â
The banking industry defended themselves by stating that borrowers werenâ€™t sending back the necessary paperwork. They also accused the Obama administration of pressuring them to sign up borrowers without doing a background financial check. When the banks needed that information from the homeowners, many dropped out fearing they would be disqualified because of their dismal finances.
You can read more on the story here.
I have to admit, I was a troubled homeownerâ€¦thatâ€™s why I live in a cardboard box blogging online for pennies. However, back to my woes as a homeowner, it was a terrible buy and even worse outcome. But, at least I learned that Iâ€™m stupid sometimes and the mortgage relief program isnâ€™t going to help as many people as president Obama had envisioned.
Â© Sophie Benvenuti – 2010