Mortgage relief plan falling short

[Pale Blue Dot]

Source: MSNBC

The government’s flagship program to give struggling homeowners relief from overwhelming mortgage payments has left hundreds if not thousands of callers frustrated by long wait times, lack of follow-up and relatively minor loan modifications that have failed to help.

A story last week on msnbc.com generated hundreds of e-mail responses from readers who have called the heavily promoted hotline. Almost all the callers said they encountered a variety of roadblocks in their efforts to save their homes.

Officials affiliated with the effort said in interviews that they have helped many borrowers but say there are misunderstandings about the limited scope of the program.

...

Part of the challenge stems from the enormous complexity of the securitized loan pools that funded the lending boom earlier in the decade. Because these pools were sold off to thousands of investors, modifying any given mortgage involves agreements involving hundreds of investors whose securities are backed by that loan. That has forced loan servicers — who were originally set up to manage payments — to enter the fray of restructuring hundreds of thousands of loans.



Read more: http://www.msnbc.msn.com/id/23581774/

[Lint Head]

1. Every idea this lying administration has falls short.

:dem:

[midnight]

2. When this administration came to be, they were refered to as

the gang that couldn't shoot straight. Now they are the gang that is too little, and too late. End this nightmare-impeach...

[SpiralHawk]

3. "We republicons are doing a heckuva job. Smirk." - Commander AWOL

[David__77]

4. I have mixed feelings about this.

I live in an area that is still grossly price inflated. I want prices to come back into their historical, normal range relative to median income. I think that this price correction must be facilitated and not obstructed. Homeowners should be helped via some other means.

[Lance_Boyle]

5. discount moving vans,

and perhaps free seminars on how to not borrow WAY more than you can ever reasonably afford to repay.

[David__77]

7. Well, not just that. Maybe debt forgiveness and short sales.

I do think there was a true market mania. People in my area with monthly net incomes of, say, $3,000 were buying housing with interest-only introductory loans and were stretched thin even with the low intro payments. It's unsustainable. I do think that short sales and debt forgiveness should be facilitated.

[Lance_Boyle]

8. if someone 'bought' a million dollar house on $3K monthly income,

then they should lose the home and every penny they foolishly sunk into it once they become unable to continue the payments.

I swear, from the tone of much of the DU commentary on the mortgage crisis, you'd think someone declared both personal responsibility AND contract law "quaint."

[David__77]

9. I understand your concern.

My point on the debt forgiveness is not somehow to "be nice," but rather to help sustain the economy and in a way that doesn't perpetuate the credit/housing bubble, which would only prolong and inflame the process.

[Hugin]

6. Here's the problem...

"The Hope Now Alliance, a private partnership"... I've thought all along this was a scam to
refresh the paperwork on the Mortgages so they *can* be foreclosed. Look at who's running it, THE BANKS,
they most certainly have a hell of a conflict of interest going there.

[Sub Atomic]

10. Of course this relief program is providing relief to the banks.

That's what it was designed to do.

Anyone who thought that Bush would be providing relief to the homeowners is just plain short-sighted.



MISSHIN COMPLISHT!!
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