As millions of Americans rush to get their taxes paid today, and Tim Geither along with other Obama Administration officials get memos and reminders, many more are looking for a place to live. The reality is that mortgage foreclosures have again hit an altime high. Of course this is a Bush Administration problem according to top Democrats.
More than a year into the Obama Administration’s run, and after 3 months in 2010, expectations are that over 1,000,000 homes will be reposesed by banks this year. At this moment 1 in 138 across the nation have recieved a mortgage foreclosue notice. U.S. homes taken over by banks jumped 35 percent compared to first quarter of 2009. Households facing foreclosure grew 16 percent in the same time period and 7 percent from the last three months of 2009.
Listening to President Obama, Speaker Nancy Pelosi or any number of other Democrats, the problem is all the fault of President Bush and his policies. A line that rings hollow to those that have lost their homes. For those that have sought help from the Government, it is President Obama, not Bush, that fault lies with.
In 2009 President Obama created a $75 billion foreclosure prevention program. It was lauded as ultimately helping 1.2 million Americans keep their homes. To date 231,000 homeowners (19% of the promised target) have had their loans modified by the program as of March 2010. It is a far cry from the loft target set. Worse yet is the fact that 158,000 homeowners (13% of the promised target) have dropped out of the program, many having lost their homes while waiting for the intervention and help that was promised.
President Obama has laaunched a new initiative to reduce the amount owed by homeowners that are underwater, their homes being worth less than the mortgages they have to pay. But exact details and plans to enact this expansion are murky at best right now. Expectations are that it could take months to get an actual plan worked out. A fact that bodes poorly for homeowners in trouble as banks accelerate foreclosures and the rate of dropouts from the intial program increased 75% in a month.
The attention of the media on this issue is scant, especially in comparison to the deluge of daily headlines while President Bush held office. The numerous calls for change and action from Democrats has abated. The Obama Administration itself is focused directly on immigration reform, passing Cap & Trade, universal voter registration, and uni-lateral nuclear disarmarment and restriction actions.
Thus President Obama today is speaking about NASA, and his reductions to continued space exploration programs. Across Congress discussion of a V.A.T. (value added tax – an additional tax placed on any product purchased, manufactured, and/or shipped) are becoming more prominent. And the exact repercussions of the Health Care Reform are starting to emerge.
A question that should be asked by the media, and the Obama Administration, is a simple one. If the intial surge of home mortgage foreclosures was the catalyst for the credit crisis and bailouts from 2008 thru 2009, what is the likely result of the surging number of all-time record foreclosures expected throughout 2010? In addition, if taxes are raised as will happen in 2011, with increased costs due to the Health Care Reform and the potential burden of Cap & Trade and/or a V.A.T., how will homeowners that are on the edge now cope?