HAMP (Home Affordable Modification Program) defaults at “alarming rate,” says TARP IG

Hotair ^ | 04/25/2013 | Ed Morrissey

[SeekAndFind]

Plus ça change, plus c’est la même chose …

Struggling homeowners who received loan modifications under a federal government program are defaulting on their mortgages at an alarming rate, according to a watchdog report released Wednesday.

The report from the special inspector general for the Troubled Asset Relief Program said the Treasury Department’s Home Affordable Modification Program, or HAMP, has failed to ensure that mortgage reductions are sustainable.

Home loans modified in the third and fourth quarters of 2009 are now defaulting at a rate of 46 percent and 39 percent, respectively. As of the end of March, more than 312,000 homeowners have defaulted on mortgages modified under HAMP, according to the report.

“This is a significant problem,” said Christy Romero, special inspector general for TARP. “When homeowners fall out of these modifications, all of a sudden they’re facing huge mortgage payments. If they can’t afford it, they’re going to get foreclosed on.”

Just a reminder — this program cost US taxpayers $75 billion, as part of Barack Obama’s stimulus bill in 2009. Taxpayers who presumably keep up with their mortgages ended up subsidizing those who couldn’t (or in some cases wouldn’t) in an effort to keep the housing market from collapsing. In some cases, the assistance has helped, but a 39%-46% default rate is outrageous. It demonstrates that the program didn’t do a very good job in judiciously investing public funds into mortgages, which was the main cause of the 2008 financial collapse as well.

 

[Dead Corpse]

If it doesn’t work the first time, it won’t work in any subsequent attempts either.

Mucking Forons...

[Da Coyote]

If the program was instigated and backed by libs...of course it’ll fail.

They’re in politics because they are not smart.

At all.

As in: idiots.

Obviously, that’s why they are libs.

[spokeshave]

Yeah.....and how many rolled into the loan a prior HELOC that brought them all sorts of goodies.....

[E. Pluribus Unum]

As was intended.

Anybody who hasn't figured out by now that the only game in town is "overwhelm the system" will remain clueless until the system is overwhelmed, which won't be that much longer.

[Responsibility2nd]

To add further insult to injury, FUBO wants to recreate the mortgage FUBAR that was the catalyst for our US recession.

 

Those who don’t learn from history are bound to repeat it… Obama pushes sub-prime mortgages… again!

Tuesday, April 09, 2013 12:03:10 PM · by Starman417 · 9 replies
Flopping Aces ^ | 04-09-13 | Vince
There’s something macabre about an imminent train wreck, you know exactly what is coming but you can’t help but watching. Now imagine that instead of watching that train wreck from atop a building a safe distance away, you’re standing right between the train and the tanker truck that has stalled on the tracks. That’s a different story all together. At that point, rather than being a mere fascination it’s a matter of life or death. You’ve seen the damage a train wreck can do. That’s why it was fascinating in the first place. The difference now of courses is that...

 

[immadashell]

The definition of insanity: doing the same thing over and over again and expecting a different outcome.

[RobertClark]

Why would they expect another outcome. It wasn’t that the mortgage terms made them not able to pay. Loans were mandated to be handed out to people who didn’t have the responsibility to pay them and couldn’t afford them. You could drop the payments to $5.00 per month and a lot of people would still default - why pay, we just told them all that big gov’t is not going to let the mean men take away your home and force you to pay rent somewhere along with tens of millions of others?!?!? F them all!!!

[Dead Corpse]

A friend of mine recently got divorced. I’m assuming partially for money matters since apparently they haven’t made a house payment in over five years.

How the hell can people live like that? I’ve worked multiple part-time jobs and short range contracts just to see that our accounts always stay in the black.

[FoxInSocks]

“When homeowners fall out of these modifications, all of a sudden they’re facing huge mortgage payments.

All of a sudden?! They got the modifications over three years ago! How is that "sudden"?

I guess everyone dies a sudden death, because at the instant someone dies, it's very sudden.

[Oldeconomybuyer]

Unexpected ...

[lurk]

Can it be safely said that if it is a government agency or program with 3-6 capital letters in its name, it’s a bad idea?

[SeekAndFind]

They might as well change the ‘A’ in the acronym to ‘U’. That’s what the end result would be for tax payers.

[bigredkitty1]

I am thinking many of these people couldn’t afford the house they are in the process of purchasing in the first place. That’s why there are rental properties and apartments. I have been breaking my back for the last 10 years to get my house paid off. I still have 19 months until it is mine. That’s another thing, these houses belong to the bank or other financial institutions until that final payment is made. Just because you move in doesn’t make it your house.

Why are my hard earned tax dollars being spent like this? Just quit throwing money down gaping black holes of endless waste. The cycle never ends and the recipients never appreciate it.

[Freedom_Is_Not_Free]

Gee, lets reward deadbeats by giving them another bunch of free money. Think they’ll magically change to responsible people?