Why The Foreclosure Bailout Program is Having Problems
Saturday, June 12th, 2010The underlying and seldom discussed bigger problem for the foreclosure bailout program, however, is that many of these homeowner still owe more on the mortgage than the actual property is worth. This means that many of these homeowners are essentially paying money on a home that will never have enough equity for them to recover.
The realization of this fact is causing some homeowners to simply leave their homes and let the bank foreclose. They see this as a better alternative than continuing to pay into a home that is only building up negative equity.
To worsen the problem, many homeowners are having to hire an attorney simply to find their way through the complex legal terminology and conditions imposed on those who are attempting to join the program.
