1.3 Million Homeowners Leave the Obama’s Mortgage-Aid-Program

It looks like that Obama’s policy on mortgage relief programs couldn’t help the Americans since almost 1.3 millions of homeowners have left the program. Actually the mortgage relief program was aimed to help the homeowners to avoid from foreclosure however as reported on Friday even though the Treasury Department has provided financial aids of approximately $75 billion it was failed to stop the foreclosure in U.S and resulting 2.3 million homes returned to the lenders.

“The government policy doesn’t help much since only few homeowners are interested in it and many of them have quit it and even if they do follow up it mostly they turn into permanent modifications” chief economist at Moody’s Analytics Mark Zandi said. Foreclosure doesn’t only force people out of their homes but also decreasing the value of homes and may damage the housing industry. Homebuilders and sellers may find it hard to compete in the housing market.

Other reasons why homeowners tend to drop out of the mortgage relief program is because it has complicated bureaucratic policy and procedures. In many cases banks often claim the borrowers didn’t return the documents even though they did or losing the borrowers’ documents. Since the complexity of bureaucratic policy many homeowners didn’t qualified to follow such program.