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IPFS News Link • Housing

After 1 Year, Obama Plan to Help Modify Second Mortgages Modifies None…

Well, woohoo! It’s been just a few weeks shy of one year since the Obama Administration announced its plan to help 1.5 million homeowners modify their second mortgages, and the program has actually done something I did not think was possible. It’s actually managed to help… no one! Come on… that’s hard to do. I mean, even Bush’s Hope-4-Homeowners infamous debacle managed to modify one mortgage after six or so months. Sure, it was probably just an accident, but this is a big country. You’ve gotta’ think that no matter how stupid the government program is, one of whatever will simply slip through the cracks somehow. But in this case… no! As my Greek in-laws would say… Opah! Wow. Someone deserves some sort of prize or at least a plaque of some distinction. Has this ever been achieved before in these United States, or anywhere else for that matter? I mean, I would venture to guess that if the government announced a program whereby a U.S. citizen was required to send in $100 in order to receive a bag of flaming dog poo on their front step, well… more than one bag would get delivered… maybe even more than one each month. Oh sure, the government would probably deliver the bag of flaming poo late and to the wrong address, but still. The program was a part of the administration’s fabulously successful, $75 billion Home Affordable Modification Program (“HAMP”) that has done absolutely nothing to change the foreclosure crisis for the better, but even it claims 170,000 loan modifications. Deduct for lender lying, incompetent reporting and political puffery and that still leaves eighty or ninety thousand people that saved a couple of bucks on their mortgage payments at the very least, right?

1 Comments in Response to

Comment by Ross Wolf (28231)
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Many homeowners realize that in most states, after foreclosure, second mortgage lenders can sue the prior homeowner to collect second mortgage loans. That includes equity-lines of credit. In Nevada, lenders can sue foreclosed homeowners to recover losses sustained on "purchase money mortgages." Lenders get deficiency judgments to collect.