Foreclosure Mitigation Deemed A Flop: Congressional Panel Tells It Like It Is; Administration Plan Fizzles; Foreclosures Rise; More Expected; Don’t Expect Much More Government Help; Forget About The Banks Bailing YOU Out; Don’t Bother Rationalization; Treasury Strategy Derided As Not Long Term Solution; Did I Leave Anything Out???; No, I Didn’t!!


Let’s stop beating around the bush….or, in this case, the Obama. The dismal results are in and there is NO question that the efforts, such as they are, of the Obama administration to effectively deal with the nation’s growing foreclosure problem amount to a failure.

Says who? Well, me, for one. But don’t take my word for it, just read the most recent report from the Congressional Oversight Panel which is charged with overseeing the administration’s efforts to cope with the foreclosure emergency.

Called “An Assessment of Foreclosure Mitigation Efforts after Six Months“–the panel report laments the “limited scope and scale of the Making Home Affordable” program……

And, it goes on to raise serious questions about whether any of the programs now in place will actually lead to permanent mortgage modifications for most or even many disperate homeowners.

making home affordible failureIn one interesting graph, the report takes aim at HAMP (Home Affordable Modification Program) saying: ” It increasingly appears that HAMP is targeted at the housing crisis as it existed six months ago, rather than as it exists now.”

Among the many concerns : that still to come mortgage rate resets may toss “millions of Americans out of their homes.” I don’t think you can win a peace prize for that? Well, then again, maybe you can!

Another issue addressed by the COP (get it, COP–as in, well, cop!!) is the fact that for many homeowners, “foreclosure is delayed, not avoided” because most of the so-called modifications to date are not permanent. In fact, some are only on a trial basis lasting a few months at best. Imagine imposing such a stern deadline on Chase or Bank of America or… get the idea.

I know some out there will probably take issue with these facts–after all, we are now living in a world that increasingly likes to avoid facts of any sort. I am sure there will be those who might write in arguing that the foreclosure program is working; that the government is doing too much and not too little; that there is not only a chicken in every pot but a flat screen TV for every room of the house.

For those who might be tempted to write such nonsense (except for the flat screen TV for every room of the house, which might be true?) let me save you the effort. You would be wrong. The facts would not support your feeble position. You would impress no one with your proudly displayed ignorance.

If you actually think (probably a bad word choice) that the foreclosure problem is behind us or even being addressed in a meaningful way, then you are not thinking at all. In fact, you are not even reading!

Now, having said all this, feel free to take issue with what I have said…wrapped, of course, in the full knowledge that you would be wrong!

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About Author

Charles is currently reporting for KNX Radio in Los Angeles, is the co-author of the book No Time To Think, and can be found commenting about the news on his blog, The Feldman Blog, as well as on The Huffington Post.


  1. I agree 100%.

    I just wrote a post about this exact same problem over at our blog and can tell you from first hand experience this writer is correct on all fronts.

    Problem is what to do?

    If the government had a brain they would have realized they screwed 90% of us by passing over those of us who already own a home. A home that has lost 50% of its value. Where is the help for all the good people out there trying to hang on.

    So they gave $8k to those first time home buyers….what exactly did it do for the big picture???

    Where is the motivation for those whose home is now worth less than when they bought it to keep paying their mtg and taxes? How long will it be before they become even again?


  2. I have yet to see a Loan Mod turn out good for someone. In fact the initial trial periods can actually hurt someones cash flow because I have seen the trial payments actually be higher than a persons current payment. A agree that much more work kneeds to be done.

  3. That may be the greatest blog title ever! I’m shocked that Congress can admit that this program has been a complete failure, but we didn’t need them to tell us that, did we?

  4. In all the games of life you have to pay to play. Why is it for the people who are struggling the same as everyone else and making their payments are forgotten about. Let’s again reward the people who don’t pay with more incentives and freebies. The harder you work for something the more value it has.

  5. Couldn’t agree more. Many of the panelists at I Survived Real Estate from the Realtor, banker, appraiser, auction, and service industry all said the same thing. We know the inventory is there. “Shadow Inventory” may not only be the foreclosures the banks are withholding but also the homes that they haven’t started the foreclosure process on. How many of us know family, friends, or colleagues that have stopped paying for over a year and still have yet to hear from the bank. Throw in strategic defaults in states like California with increasing unemployment heading into winter and it’s a real mess.

    Many of these “modifications” are also being recycled because we already know they have a very high re-default rate. When will they let the market take care of itself?

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