As usual, I predicted this before the "real media". Per my blog post on March 5, 2009 regarding the new government foreclosure programs, since investors are excluded and many people have negative equity in their homes the government foreclosure programs (now labeled MHA) will not be successful in significantly reducing foreclosures.
Monday, April 6, 2009
President's "Making Home Affordable" Program Not Enough to Stop Foreclosures
According to this Inman News article, Negative Equity: a housing timebomb, President Obama's Making Home Affordable Program (MHA) will only have a small impact on reducing foreclosures because it igores one of the key drivers of foreclosures: negative equity. The article also mentions that investors being excluded is also a problem with MHA.
Higher Unemployment = More Foreclosures
According to this New York Times article, unemployment increased in March 2009 with another 663,000 jobs lost bringing the total jobs lost in this recession to over 5,000,000. No doubt this will mean more foreclosures.
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