Is there no Hope for Homeowners?

Yesterday I wrote about the recent data which revealed loan modifications were re-defaulting at 53% rate after 6 months. In doing further research into loan modifications, I discover some additional interesting data.

HUD’s Hope for Homeowners Program, which was designed to help at risk homeowners get more affordable mortgage rates only received 312 applications (remember, these are just applications, not approvals) since its launch in last October. The HUD Chief called the program a failure because this three year program was supposed to help 400,000 homeowners. (By my calculation, at a rate of a 150 applications per month, the program will have only received 5,400 applications, or 1.4% of its goal! By any measures that is a spectacular failure.) The program designed by Congress as a part of the recent bailout program which has turned out to be too expensive for both the lenders and the borrowers, so the lenders are choosing not to participate in the program.

See the full article below

http://www.washingtonpost.com/wp-dyn/content/article/2008/12/16/AR2008121603177.html

Is this the type of Hope we can expect from our government? Where is the $700 Billion going?

Steve Mun, Silicon Valley Realtor
www.stevemungroup.com