I thought this was somewhat interesting. You may recall the “Foreclosure Prevention Act of 2008,” about which we held a poll back in July. One of the primary aspects of the Foreclosure Prevention Act is the HOPE (Home Ownership Preservation Entity) for Homeowners program, which was intended to:
…insure up to $300 billion for 30 year refinanced loans for distressed borrowers between October 1, 2008-September 30, 2011.
Two and a half months into to the program, it would appear that the 51% of you that said the act would “have little effect on the housing market” are correct.
From the Washington Post: HUD Chief Calls Aid on Mortgages A Failure
The three-year program was supposed to help 400,000 borrowers avoid foreclosure. But it has attracted only 312 applications since its October launch because it is too expensive and onerous for lenders and borrowers alike, [Secretary of Housing and Urban Development Steve] Preston said in an interview.
…
One of several federal and state foreclosure prevention initiatives facing difficulties, HUD’s Hope for Homeowners program has been especially hamstrung.
…
“Getting the lenders to agree . . . has been our biggest challenge,” said Peyton Herbert, director of foreclosure services at HomeFree USA, a housing counseling firm in Hyattsville. “They want dollar for dollar what’s owed on that loan or something close to it. That’s the fly in the ointment.”
Go figure.