We’ve seen it before and here is proof again that the government-sponsored mortgage aid programs are not working.
Late last week, the Treasury announced that about 48% of the 1.3 million homeowners who enrolled in the flagship mortgage-relief program since March 2009 are no longer in the program. That represents about 630,000 homeowners who have tried to get their monthly mortgage payments lowered. The Treasury also suggested that the number of foreclosures could rise in the second half of the year. Not exactly a good outlook for the housing market. Just over 32% of homeowners enrolled in the program have received permanent loan modifications and have been able to stick to their payment schedule. One thing the homeowners seem to agree on is that the program is a red-tape nightmare. Complaints of lost paperwork or documents not being received are commonplace. Some of the larger mortgage companies in the program have been trying to offer alternative programs to those who dropped out of the government-backed program.