CHESSNOID

There was a plan put out by the Bush administration to help homeowners, but it failed.   Then there was a new plan put out by the Obama administration which was put in place after taxpayers bailed out the banks.  So did the banks help out the same people who supplied the money to bail them out? No, that plan has also failed.

NEW YORK (CNNMoney.com) – Only a tiny percentage of troubled homeowners have received permanent modifications under President Obama’s foreclosure prevention plan, raising concerns about the effectiveness of the $75 billion effort.

Fewer than 5% of the trial modifications on loans owned or guaranteed by Freddie Mac were converted to long-term adjustments as of Sept. 30, according to the mortgage finance giant.

Looking more broadly, the figures are even lower. As of Sept. 1, only 1.26% of all trial adjustments were made permanent after three months, reported the Congressional Oversight Panel, which monitors the government’s use of bailout funds.

The Treasury Department is set to release within coming weeks the first comprehensive look at the number of permanent modifications issued so far.

The preliminary data, which has not been widely reported, underscores the next big problem facing the government’s effort: Officials have leaned on banks to offer more homeowners trial modifications, but the real test will be whether homeowners will receive lasting help.

The banks are not cooperating and that is consistent with their goals.  That goal is to make a profit.  Banks recognize losses when they do permanent modifications both in a reduction of revenue and loss in the actual loan amount.  With delinquency continuing to rise, more banks will be hurt.  Considering that the bailouts did NOT make them more cooperative, I would recommend the Obama administration not waste OUR taxpayer money on saving banks.  We have an FDIC system that takes care of poorly run banks that are insolvent.

NEW YORK (Reuters) – U.S. mortgage delinquency rates and the percentage of loans that entered the foreclosure process jumped in the third quarter, with both reaching record highs, the Mortgage Bankers Association said on Thursday.

The percentage of loans on which foreclosure actions were started rose to 1.42 percent in the third quarter, an all-time high and up from 1.36 percent in the second quarter.

Rising U.S. unemployment propelled more mortgage delinquencies and foreclosures, a trend that will continue into next year, the MBA said.

“It is all about unemployment, everything else is secondary,” MBA’s chief economist Jay Brinkmann said in an interview.

“We expect unemployment to keeping rising into the first quarter of 2010, which means we will most likely see even higher rates of delinquencies and foreclosures,” he said.

The delinquency rate for mortgage loans on one-to-four-unit residential properties rose to a seasonally adjusted rate of 9.64 percent of all loans outstanding as of the end of the third quarter of 2009, up 40 basis points from the second quarter and up 265 basis points from one year ago, the MBA said in its National Delinquency Survey.

The delinquency rate broke the record set last quarter. The records are based on MBA data dating back to 1972.

The Obama administration needs to look at things that are working. It doesn’t have to waste OUR taxpayer money on insolvent banks and companies. The BAILOUTS are a FAILURE and we should avoid them at all costs. Simply look at the NACA non-profit organization and see the results they have produced. Here is a link to saving one foreclosure at a time.