{"id":10763,"date":"2010-01-02T13:54:49","date_gmt":"2010-01-02T20:54:49","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=10763"},"modified":"2010-01-04T05:08:51","modified_gmt":"2010-01-04T12:08:51","slug":"new-york-times-on-the-loan-modification-program","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10763\/new-york-times-on-the-loan-modification-program\/","title":{"rendered":"New York Times on the Loan Modification Program"},"content":{"rendered":"

The New York Times is reporting<\/a> what everyone at Bloodhound Blog has known for a long time about the Federal Government’s attempt to encourage loan modifications:<\/p>\n

The Obama administration\u2019s $75 billion program to protect homeowners from foreclosure has been widely pronounced a disappointment, and some economists and real estate experts now contend it has done more harm than good.\n<\/p><\/blockquote>\n

If you’re a fan of Peter Schiff, then you heard him say in the fall of 2008 that the government’s cure to a bursting asset bubble would be worse than the underlying problem itself. He was right, but the logic of politics does not care about the long term economic health of the country.\n<\/p>\n

Here’s The New York Times<\/i> telling us that government-backed loan modifications are:<\/p>\n

1. delaying a wrenching yet cleansing process through which borrowers give up unaffordable homes and banks fully reckon with their disastrous bets on real estate,<\/p>\n

2. [encouraging] desperate homeowners [to send] payments to banks in often-futile efforts to keep their homes, which some see as wasting dollars they could have saved in preparation for moving to cheaper rental residences,<\/p>\n

3. [are allowing banks to use] temporary loan modifications under the Obama plan as justification to avoid an honest accounting of the mortgage losses still on their books,<\/p>\n

4. [are preventing] housing prices [from] drop[ping] to levels at which enough Americans can afford to buy,<\/p>\n

5. delaying the return to work for carpenters, construction workers, and a whole sector of the American economy.<\/p>\n

These numbers tell the story:<\/p>\n

In 2008, more than 1.7 million homes were \u201clost\u201d through foreclosures, short sales or deeds in lieu of foreclosure, according to Moody\u2019s Economy.com. Last year, more than two million homes were lost, and Economy.com expects that this year\u2019s number will swell to 2.4 million.<\/p><\/blockquote>\n

Now, if in late 2008, the government had simply let foreclosures go forward without holding out hope for a loan modification program, it would’ve been an awful<\/b> as opposed to merely bad 2009. But we would be seeing a recovery in the next 6 months. Instead, we’re just going to see more foreclosures for the next two years.<\/p>\n

Update: The Washington Independent has a good <\/a>Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The New York Times is reporting what everyone at Bloodhound Blog has known for a long time about the Federal Government’s attempt to encourage loan modifications: The Obama administration\u2019s $75 billion program to protect homeowners from foreclosure has been widely pronounced a disappointment, and some economists and real estate experts now contend it has done […]<\/p>\n","protected":false},"author":62,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-10763","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-real-estate","8":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":10513,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/10513\/modifications-are-failing-more-on-the-acronym-soup\/","url_meta":{"origin":10763,"position":0},"title":"Modifications are Failing…. (More on the Acronym Soup)","author":"Tom Vanderwell","date":"December 8, 2009","format":false,"excerpt":"There's a couple of interesting and yet disturbing points to this report from CNBC:over 2\/3rds of the people who are currently in the trial period of loan modifications are not going to qualify for the permanent modifications.\u00a0\u00a0 Why?\u00a0\u00a0 A couple of likely possibilities:\u00a0 1) They are too far upside down\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4812,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4812\/other-types-of-credit-may-be-feeling-the-crunch-but-home-mortgages-are-still-readily-available\/","url_meta":{"origin":10763,"position":1},"title":"Other types of credit may be feeling the crunch, but home mortgages are still readily available","author":"Greg Swann","date":"October 4, 2008","format":false,"excerpt":"This is my column for this week from the Arizona Republic (permanent link). \u00a0Other types of credit may be feeling the crunch, but home mortgages are still readily available Bad news about the economy is coming in from all directions, so you may be in the mood for some good\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4858,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/4858\/will-mortgage-brokers-be-the-hope-for-homeowners\/","url_meta":{"origin":10763,"position":2},"title":"Will Mortgage Brokers Be the Hope For Homeowners?","author":"Brian Brady","date":"October 8, 2008","format":false,"excerpt":"The FHA Hope For Homeowners program was designed for existing homeowners, struggling with mortgage payments and an \"upside-down\" equity position in their primary residence.\u00a0 It is a new program with lots of misinformation.\u00a0 Some believe it can only be offered by existing loan servicers, some think only participating lender\/servicers can\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":9901,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/9901\/do-today%e2%80%99s-home-prices-reflect-their-market-value\/","url_meta":{"origin":10763,"position":3},"title":"Do Today\u2019s home prices reflect their market value?","author":"Al Lorenz","date":"September 29, 2009","format":false,"excerpt":"Can you really look at a buyer today and tell them that they are buying their home at a good price?\u00a0 Sure, you can tell them how the price they are paying compares to what folks have been paying the last few months, or few years.\u00a0 But that doesn't mean\u2026","rel":"","context":"In "Dirty Laundry"","block_context":{"text":"Dirty Laundry","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/dirty-laundry\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":5900,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/5900\/investor-sues-to-block-mortgage-modifications\/","url_meta":{"origin":10763,"position":4},"title":"Investor\u00a0Sues to Block Mortgage Modifications","author":"Tom Vanderwell","date":"December 2, 2008","format":false,"excerpt":"The battle over the mass modifications of troubled mortgages has begun in earnest. On Dec. 1, William Frey, a private investor in mortgage-backed securities, filed a lawsuit in New York State Supreme Court alleging that the proposed modification of some 400,000 home loans originally underwritten by the defunct lender Countrywide\u2026","rel":"","context":"In "Lending"","block_context":{"text":"Lending","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/lending\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":7211,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/7211\/the-federal-governments-housing-casino-will-never-play-fair-as-long-as-there-are-votes-to-be-bought-by-cheating\/","url_meta":{"origin":10763,"position":5},"title":"The federal government’s housing casino will never play fair as long as there are votes to be bought by cheating","author":"Greg Swann","date":"February 28, 2009","format":false,"excerpt":"This is my column for this week from the Arizona Republic (permanent link). Since I wrote this on Tuesday, events have overtaken some details, but it remains that few if any borrowers in the Phoenix area will be able to renegotiate or modify their loans under the Obama plan. Everyone\u2026","rel":"","context":"In "Big Mother"","block_context":{"text":"Big Mother","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/big-mother\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/10763","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/comments?post=10763"}],"version-history":[{"count":1,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/10763\/revisions"}],"predecessor-version":[{"id":10764,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/posts\/10763\/revisions\/10764"}],"wp:attachment":[{"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/media?parent=10763"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/categories?post=10763"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/wp-json\/wp\/v2\/tags?post=10763"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}