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Government Foreclosure Rescue Efforts Fall Short

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  • Stan Brody | | 07 Sep 2012, 04:45 PM Agree 0
    As soon as they began, I warned that both HAMP and HARP would be abject failures. There are some $2.2 TRILLION in underwater mortgages nationally... Fannie owns all of $895 Billion total... if we assume that 100% of Fannies portfolio was underwater, and it is not, and modified under these two programs, we would still be left with 2/3 of the total still in trouble... preventing a recovery.... ONLY a comprehensive across the board Mark2Market modification program along the lines of the one that I have been suggesting for over three years can possibly stabilize the housing sector... The simple fact that lenders are slowing down foreclosures in favor of accelerating short sales is proof that my proposal is spot on... Insofar as the mortgage holders are ready and willing to accept $100-200-300,000 write off in a short sale... can anyone invent a really good reason, why these very same lenders refuse to modify the mortgages down to anywhere near those numbers for the existing homeowner's???... Doing so, would stabilize neighborhoods and cities... keep local businesses healthy and hiring... and, even thought hey will not have any equity in their homes, provide the hope for the future so desperately required by millions of Americans Or, is it that insofar as no one on wall street (like the cancer it is, never capitalize wall street) has or will be charged with any form of malfeasance... "someone" has to be punished... and the homeowner's are the perfect target... errr, victim...
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