Remember last summer we were told that Bush’s "Hope for Homeowners" program could help up to 400,000 homeowners who were facing foreclosure? So how many homeowners have been helped since then, care to take a guess? Here’s a hint- move the decimal place five spaces to the left, and you’re still 400% too high:
NEW YORK (CNNMoney.com) — If HOPE for Homeowners, the foreclosure-prevention plan passed last summer, was a soft drink, it would be New Coke. If it was an automobile, it would be an Edsel. A movie? Howard the Duck.
In the five months since it has been in effect, HOPE has helped exactly one homeowner to avoid foreclosure. This despite Congress having made $300 billion available to back these loans and estimating that the program would benefit as many as 400,000 families.
"As it stands now, we’ve only gotten 752 applications," said Federal Housing Authority spokesman Brian Sullivan. "And only insured one loan. Needless to say, the program isn’t working terribly well."
Rep. Michael Castle (R – Del.), who sits on the House Financial Services Committee, agreed, calling HOPE "one of the most failed programs we’ve had in a long time."
To say that about a government program is to be saying something!
Twist,
Yikes! Ya just can’t make up things like this.
Housing remains a terrible symptom of the underlying failure of our impossible economic basis.
The Obama Administration is attempting to revive an arcade economic model that was DOA in 1970 and even a growth of 2400% (63% annual average)of M-3 money stock since that date, has failed to revive the patient who remains on life support.
It’s time to unplug the machine and let it die.
So if only 1 person got helped.. does that mean he gets the whole $300 billion to himself? Sweet!!
I could not even believe this stat at first, I had to click on the article…I didn’t believe you!
While Obama’s housing initiatives have some added components in compared to H4H, you have to wonder if mtnmike is right. Is it time to “unplug the machine and let it die?” Is our current model of foreclosure assistance a failed one? Granted Obama’s programs haven’t had a chance to work, but just the initiative aimed at helping “responsible” homeowners is gauged to help 4-5 million. Is that even close to an accurate prediction? I guess it’s just a case of wait and see.
Thanks,
Tim
Tim-
There is no possible way that 4-5 million will be helped. The requirements are strenuous and the benefits marginal.
The government has shown time and again that it wants to appear to be doing “something”- even if “something” is detrimental. There’s always someone else to blame if it fails.
I agree with MtnMike- this has to run its course.
i had said it may possibly help 1-2 million (obama’s plan). i think i was shootin for the stars with that estimate. the people that qualify either don’t want help or don’t need help.
Jobs (decent paying) need to be created. Proping the home prices up actually leads to less jobs being created. Even if people buy the overinflated homes, that means less money in their pockets to buy other goods and services.
Hey! I like Howard the Duck.
I see that Gary Watts still has some hope of modifying his obligations via a short sale in the OC.
“Today, however, Watts has defaulted on the home’s loan after the price dropped 22% from that original sale price. He’s currently in escrow, seeking his lender’s approval to sell it for nearly $93,000 less than he owes on it.”
http://lansner.freedomblogging.com/2009/03/25/oc-prognosticator-defaults-on-rental-house/17639/
A high level of glee for housing bubble observers is “in the bag.”
Russ-
Ordinarily you hate to see someone in that position, but Watts was so terribly annoying. There’s a certain justice in seeing him have difficulties- everyone who believed him has to be in a similar position.
If this is the only property he owns that ends up in foreclosure, I’ll eat my hat.
it wont be the only property. you’re talkin 20 properties. if watts purchased most of them durin 04-06 then i’d bet a paycheck he’s lookin at BK within a year.
If it is true that “only the good die young”,
then this ‘HOPE’ will be near immortal.