Treasury: Millions More Foreclosures Coming

Reuters ^ | September 08, 2009

[Steelfish]

Treasury: Millions More Foreclosures Coming

Official says a strong housing market is crucial for the economy

Sept. 9, 2009

WASHINGTON - Only 12 percent of U.S. homeowners eligible for loan modifications under the Obama administration's housing rescue plan have had their mortgages reworked, and millions more foreclosures are coming, the Treasury Department said on Wednesday.

A Treasury report showed 360,165 people had their monthly payments reduced through August, up from 235,247 through July, but a senior Treasury official conceded much more must be done to soften the impact of a severe and prolonged housing crisis.

Treasury has begun releasing monthly reports on the loan modification program, called the Home Affordable Modification Program or HAMP.

In July, it said that just 9 percent of the estimated number of homeowners eligible had had their loans modified, so Treasury's assistant secretary for financial institutions, Michael Barr, was able to claim modest progress in August.

He told a House Financial Services subcommittee that the program launched in February, which brings banks and loan servicers together with at-risk homeowners, was on target to help a half million Americans homeowners by November 1.

[rabscuttle385]

*Ping!*

[ScottinVA]

Good Lord... the bleeding continues.

Hey zer0 — what now?

[F15Eagle]

Treasury: Millions More Foreclosures Coming

Yes, there are. I tried to warn a family member about two transactions yesterday, one in progress and one that (IMHO) should be pending. The response was "Well, if we're in trouble then everybody is in trouble". I'm like "Yeah, that's the whole point". They'll both get caught in the tide when it goes out. But people who haven't experienced it don't really believe it's real. It's just another story on the evening news.

[jpsb]

"He noted that analysts anticipate more than six million Americans could lose their homes in the next three years."

OMG that is horrible!

[GOPJ]

And what will the country look like with that many people in foreclosure? They won't be buying much - won't have credit. What will housing prices be like? With too many empty homes, will taxes to keep cities going be “re-figured” bases on fewer home owners? Or will cities cut back - and let go employees... adding to unemployment?

[Republic of Texas]

Don't worry about those foreclosures, that's the Frank/Dodd plan at work. You can't be dependent on the government if you own your own home!

[Bean Counter]

Here’s a Hot News Flash for those who think that “The Feds” are going to “save” anyone from foreclosure: “The Banks” won’t write a mortgage for anyone if they are unemployed. That’s what used to be referred to as a “Liar’s Loan” and it went the way of WAMU some time ago...

What we are seeing now is the processing of thousands of foreclosures that have been voluntarily put on hold for months, waiting for Congress to do that voodoo they do so well, and now that it’s clear that few if any of those who have been on hold will qualify, there is no reason to wait any longer, and foreclosures are proceeding.