Government Loan Modifcation Plans Still Not Working

Well,. here we go again.  The federal government plans to help troubled homeowners is still a bust. The latest report from TARP  Inspector General find the loan modification plan  is not helping homeowners to avoid foreclosure.

Neil Barofsky, TARP Inspector General says the modification  has not “put an appreciable dent in foreclosure filings,” during a Senate Finance Committee meeting on the $38 billion bailout. Barofsky said Treasury Department did not follow earlier goals for the program.

Congressional Oversight Panel Chair Elizabeth Warren says the Treasury Department maybe inhibiting recovery.

If more home goes into foreclosure it will sent  housing prices falling.

The loan modification plan which would be designed to help homeowners cut their mortgages payments. So far 400,000 families  helped. But, 530,000 others have fallen out of the program.

The Feds provides $50 billion to the program so far the program has spent $250 million to help troubled homeowners.  Yes a quarter of a billion dollars distributed in the distress mortgages program.

AP via Yahoo News has the rest of the story.

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