After the height of the foreclosure crisis left so many Americans devastated by the loss of their homes, the government stepped in to try and help prevent future foreclosure troubles. However, many people are now criticizing these moves stating their efforts are not reaching those in need.
Mortgage Debt Mounting
It is estimated that over one-third of homes in America are suffering from mortgage debt troubles, and half of those either have already defaulted or are at high risk of defaulting in the future. In attempt to stabilize the failing housing market and keep more homes out of foreclosure, the Obama Administration has poured time and money into bailouts for homeowners facing mortgage debt. The Home Affordable Refinance and Home Affordable Modification Programs are just two examples of initiatives being made to provide help to homeowners. Although hundreds of thousands of homeowners have been reached by some of these vital programs, not everyone is happy about the outcome.
Many of those criticizing the efforts made are unhappy that only “responsible borrowers” were aimed for receiving help. By suggesting that lenders offer loan modifications under set guidelines, many people judged to be carrying “excessive debts” were not reached. Landlords of sinking properties were also ignored, further devaluing neighborhoods that were already in a downward spiral. These opponents suggest that there is need for more of a legislative push to regulate mortgage companies, requiring they be more flexible in helping all borrowers.
Despite the criticism, the fact that even less than fruitful efforts were made has to be acknowledged. The Obama Administration has recognized their prior efforts were not as successful as hoped and officials are now back to the drawing board to continue efforts for rebuilding the housing market.