Apr 26, 2010
The number of people who will be able to stay in their homes as the result of having their mortgages modified under the government’s latest anti-foreclosure program will certainly be very small. The re-default rate is already soaring on the modified mortgages and they are only a few months old.
However, even though this multi-billion dollar government program will not help very many homeowners, it will clearly help the banks involved. How? By substituting government-insured FHA mortgages for most of the original mortgages issued by the banks.
The result? Far more taxpayer money is likely to be given to the banks than to homeowners. It’s just another bailout for the banks masquerading as a homeowner rescue program.