Will $20 Billion Solve The Mortgage Crisis?
An article in today's Wall Street Journal has the internet and cable news networks buzzing.
The article says that the Obama administration is looking at forcing lenders to cough up $20 Billion to help distressed homeowners through principal-reduction loan modifications.
I'm sure that in the very near future, either the president himself, or one of his financial gurus will get up in front of the cameras to let all of us know how much our government cares about homeowners by "punishing" those evil banksters who got us into this mess.
Let's look at how many people $20 Billion will help.
According to a recently released LPS Mortgage Monitor Report, there are currently 6,869,584 distressed homeowners in the U.S.(as of December 30, 2010). Distressed is defined as being a minimum of 30 days late on a mortgage.
Let's do the math, shall we? $20 Billion/6,869,584 equals $2,911.38 per homeowner. Wow, thanks Mr. President! I can't wait to see how many homeowners will now get to keep their homes because of this generous move by the government!
While I'm thrilled that principal reduction is finally being talked about as a solution (in my opinion, it's the only solution to the current crisis), announcements like this only give more false hope to homeowners that have already been through the ringer.
Then again, what do you expect from the group that has brought us such successful programs as HAMP & HAFA?
Subscribe To This Blog Via Email
Bob Hertzog
Summit Home Consultants
Visit the Summit Home Consultants Team Website
Copyright © By Bob Hertzog 2011 *Will $20 Billion Solve The Mortgage Crisis?*