It's Very Sad......

In an article from CNBC.com (http://www.cnbc.com//id/27701737), Diana Olick, who writes a column called "Realty Check", wrote about the failure of the Hope For Homeowners program to actually help anyone. If you recall, the Hope For Homeowners program is a FHA program that was suppose to help those homeowners with mortgages that were in big trouble and knocking on the door of foreclosure. The idea behind this program was that lenders who currently hold these troubled loans were going to write down the principal that was owed to them up to 90% of the current appraised value. This would reduce what was owed to the lender and allow these troubled homeowners to refinance into something more affordable.

This sentence from the article says it all:

"I’ve just seen the latest numbers on the recently launched government Hope for Homeowners program, and I’d call them laughable if the whole thing weren’t so blatantly sad. "

Once again, that's "blatantly sad".

The article goes on to say on how only 19 applications have been accepted by lenders for this program and how lenders are reluctant use the program because their costs are to great. So the homeowners (taxpayers) who really need this program can't use it because the lenders don't want to play.

Think of the comic strip Peanuts. Charlie Brown is going to kick a football which being held by Lucy. As Charlie starts to kick the ball, Lucy pulls the ball away and Charlie falls on his behind, embarrassed and angry.

I have to imagine that is all the distressed homeowners feel: embarrassed and angry. The government can use billions of the distressed homeowners tax dollars to bailout large financial firms (because it's good for the economy!) but a program designed by the government to help the people who are days away from losing their house, really doesn't help anyone.

That's hard to believe, isn't it.

Let's bailout the taxpayers before we bailout anyone else.

If you have any comments on this article, I would love to hear what you have to say! Feel free to comment below.

Thanks for reading!

Dan Tenchall
Great Lakes Mortgage Funding

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