Hanging On to Houses
Introduction
In his column on Monday, Paul Krugman said that the Obama administration has done almost nothing to help troubled homeowners. Of $46 billion set aside for mortgage relief, less than $2 billion has been spent.
It has been more than six months since a bipartisan Congressional report called the government's effort -- the Home Affordable Modification Program -- "a failure."
While new foreclosure filings have slowed significantly since then, because of a large backlog in cases, greater caution by lenders and more aggressive defenses by homeowners, housing experts expect the pace of foreclosures to pick up again. The Times reported today that Bank of America, the nation's biggest mortgage servicer, had reached a deal with its investors that will speed the eviction of the most distressed homeowners, while helping those in better financial shape.
What changes can be made in the program to make it work more efficiently -- for homeowners, mortgage holders and taxpayers?
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Room for Debate
Hanging On to Houses
Kim Luu, editor, Moneyandrisk.com
Morris A. Davis, University of Wisconsin
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