Billions Meant for Struggling Homeowners May Pay Down Deficit Instead

Billions Meant for Struggling Homeowners May Pay Down Deficit Instead

by Lois Beckett ProPublica

With housing prices dropping sharply [1], and foreclosure filings against more than 1 million properties [2] in the first half of this year, the Obama administration is scrambling for ways to help homeowners.

One place they won’t be looking: an estimated $30 billion from the bailout that was slated to help homeowners but is likely to remain unspent.

Instead, Congress has mandated that the leftover money be used to pay down the debt.

Of the $45.6 billion in Trouble Asset Relief Program funds meant to aid homeowners, the most recent numbers available show that only about $2 billion has actually gone out the door.

The low number reflects how little the government’s home loan modification and other programs have actually helped homeowners [3] deal with the foreclosure crisis.

The programs have been marked by poor oversight [4] and consistent under-enrollment [5]. Homeowners have been forced to navigate an often bewildering maze at banks marked by slow communication, lost documents and other mistakes [6].

The amount of money spent is also low because the government pays out its incentive over a number of years. As of July, according to a Treasury spokeswoman, the government is on track to eventually spend $7.2 billion helping homeowners enrolled in its main loan modification program. That number doesn’t factor in other homeowners who may enter the program before it ends in December 2012, but it does assume that all homeowners currently in the program will be able to continue making payments.

In November, the Congressional Budget Office lowered their estimate of the total amount of money the government would spend on its foreclosure relief programs from $22 billion to $12 billion. (The New York Times reported today that the government has “spent or pledged” $22.9 billion of the TARP money so far [7], a figure that’s dramatically higher than ours and that the Treasury spokeswoman said was the Times’ own number.)

According to the original TARP legislation, unused funds should be returned to the Treasury and used to reduce the debt [8]. While Congress has the power to re-route those funds into new programs, Republicans seem unlikely to endorse such a plan [9].

An Obama administration statement noted that they were continuing to look for ways to “ease the burden on struggling homeowners” through new proposals and reconsidering old ones.

The other ideas the administration is looking at have received mixed reviews. Among them: turning foreclosed homes into rental properties [10] or allowing homeowners to refinance their mortgages at today’s lower interest rates, an old idea that may not actually help a large new segment of homeowners [11].

“We have no plans to announce any major new initiatives at this time,” the statement noted.

~

4closureFraud.org

 

Comments
31 Responses to “Billions Meant for Struggling Homeowners May Pay Down Deficit Instead”
  1. kravitz says:

    Hey! Your pal Tyler just said….

    BofA’s $8.5 Billion Settlement Could Fall Apart After Request Made To Move Mortgage Case From State To Federal Court
    http://www.zerohedge.com/news/bofas-85-billion-settlement-could-fall-apart-after-request-made-move-mortgage-case-state-federa

    • lvent says:

      Great link kravitz!! Nice job Zero Hedge for getting the truth out there so all can see what these crooks are trying to do….Truth is there is no legal fix, only illegal fixes for this massive 40 trillion debt backed by ZERO that the Wall Street crooks ran America up with mere speculation and multiple pledging of notes like 10 mortgages per home. The U.S. Government should freeze their overseas bankster accounts and make them pay back all of their ill-gotten gains they stole from all of us….and rescind the mortgages, there is not enough homes to steal or anything else for that matter to cover for all of their collateral fraud and exponential fraud.. A/K/A .MASSIVE AND UNSUSTAINABLE DEBT!!!……THEY THOUGHT THEY HAD US BY THE THROATS AND THEY WOULD NEVER GET CAUGHT….WELL THEY GOT CAUGHT……..and we will burn the mofo’s down if they keep stealing homes they do not own…..and selling interest in them to the foreigner’s so they can RENT US BACK OUR OWN STOLEN HOMES and keep this ILLEGAL MORTGAGE FRAUD PONZI SCHEME GOING…….JUST EAT IT WALL STREET AND THEN THROW THE BASTARDS IN PRISON!!!!!……….FOR LIFE!!!!!! There are a very many traitors and treasonists in our midst trying to aid and abet these criminals including the judges and the attorneys for the banksters…that is why there are no attorneys to help homeowners and that is because there is an illegal and unconstitutional conflict of interest at play here and that can be proven without a shadow of doubt……….BURN BABY BURN!!!!!

      • I vent……RIGHT ON !!!! WE FOUND THE FRAUDS…WE GOT THE FIGURES…WE GOT PLENTY OF KNOWLEDGE THAT NO ONE CAN HIDE ANYMORE….WE GOT ONE HAND ON THEIR THROATS AND ONE HAND ON THE SET BETWEEN THEIR LEGS…AND WE WILL NOT LET GO….THE ONLY WAY TO FIX THIS MASSIVE FRAUDULENT PLANNED AND DELIBERATE CRIME WILL BE TO OPEN THE GATES TO PRISON…THERE IS NO NEED FOR ANY LENGTHLY COURT PROCESSING TO PROVE ANY OF THIS SHIT…IT HAS BEEN PROVEN ALREADY…IT WILL BE THE COURTS BY THE PEOPLE…THIS WILL INCLUDE THE TREASON THAT HAS FED THIS CRIMINAL FINANCIAL CRIME DONE TO AMERICA….all fraudclosures must be stopped and all homes taken by fraud must be held on hold..not sold…The courts run on the ponzi scheme of what ‘ monies ‘ gained in the future filings of foreclosures ..to keep the courts doors open. Close the doors of these courts and there will be not need of more taxpayers money to pay a court of fraud….we have not had a court of justice. That too has been proven.
        End the Federal Reserve…it is a private corporation…it is not a part of our government. End the IRS…We the People do not owe any debt…and the IRS is held by the Federal Reserve as a debt…debt was caused by TREASON….not by the people of this country. We owe the Federal Reserve nothing. The IRS is a collection agency for this debt. Stop paying income taxes…..it is another way to rob the people….END THE FED. RESERVE AND THE REST WILL FALL…..and the list goes on……FIGHT THE FIGHT…JUST KEEP MOVING FORWARD…UNITE TOGETHER AND SPREAD THE WORD.. THIS IS THE LAST CHANCE TO SAVE OUR COUNTRY FROM THE DEMON’S OF HELL.

      • lvent says:

        Marilyn!!! Good one! LOL!!! That is a funny picture you just put in my head!!!! These crooks are going down…or it will be pay back time for them….and I wouldn’t want to be them…More and more people are waking up…..Love that plan by Anonymous….That plan should go nationwide….Nationwide sit in at the capitals and the other criminal enterprises around the country……Can’t afford to go to NY but I can go downtown Chicago to the CME or down to Springfield!!!! Burn Baby Burn!!!

      • i vent….If we squeeze hard enough they certainly will go down…LOL…..might even do a little twisting while I am at it………….

  2. leapfrog says:

    “Hey, everybody! Time now to check what’s going on with that giant portfolio of foreclosed-upon homes that we, as taxpayers, own. Did you forget that we owned a giant portfolio of foreclosed-upon homes? Because we do. Anyway, the good news is that we may not have this portfolio for much longer. The bad news is that we’ll be relieved of it in one of the worst deals possible. At any rate, Ken Layne points us to some recent news on that front:”

    http://www.huffingtonpost.com/2011/08/25/taxpayer-assets-vulture-funds_n_937063.html

    • lvent says:

      leapfrog, WOW!!!!!!!!……Even a bigger robbery and transfer of our wealth than the last one?????….WOW, they sure know how to steal everything from the american people with impunity to try and cover up for all of THEIR COLLATERAL FRAUD…..DYLAN RATIGAN SHOULD HAVE THIS ON HIS SHOW……..My God, America wake up!!!!! These fraudsters are stealing and selling off your homes and your country to the foreign investors for pennies on the dollar to rent back to you…RECYCLING THE FRAUD TO KEEP THE PONZI SCHEME PIRATE SHIP SAILING AND ALL THE WHILE ACHEIVING THEIR NEW WORLD HORDER ULTIMATE GOAL OF CYBERSPACE DOMINATION OF THE WORLD!!!!!!……IF THE AMERICAN PEOPLE EVER WAKE UP, THEY ARE GOING TO BE BURNING THIS SHIT TO THE GROUND!!!!!!!!!!!!

      • I VENT…. these CROOKS WILL continue to rob this country….and the crooks include the government along with the demons of hell…..WHY WOULDN’T THEY CONTINUE THEIR CRIME SPREES…THE PEOPLE OF THIS COUNTRY HAVE DONE NOTHING…. THEY HAVE SAT BACK AND ENJOYED BASEBALL, FOOTBALL AND REALITY SHOWS. IT APPEARS NO ONE GIVES A SHIT FOR THIS COUNTRY, THEIR OWN FREEDOM, THEIR RIGHTS, THEIR FAMILIES ESPECIALLY THE CHILDREN, THEIR LIVES….THIS IS THE START OF BEING SLAVES TO THE ELITE RICH DEMONS WHO WANT NO AMERICA…TAKEN OFF THE MAP OF THE WORLD…EACH WITH CHIPS INJECTED INTO THE HAND WITH A NUMBER, NOT OWNING ANYTHING…ALL BEING RENTERS WITH NO FOOD, NO JOBS, NO MONEY, NO CARS, AND DEPOPULATION OF THE PEOPLE TO BE ELIMATED..LIFE ENDED. FEMA CAMPS SET UP ALL OVER THIS COUNTRY ALREADY. YOU WON’T HAVE A CHOICE OF LIFE OR DEATH. AND YOU WON’T HEAR THIS ON THE TV OR IN NEWSPAPERS…THE MEDIA IS CONTROLLED BY THE SAME DEMONS OF HELL. THIS IS NOT FICTION…THIS IS FACTS.
        Unless the people WAKE UP REAL FAST …they can kiss everything good- by…there will be blood shed but it will be to late.

      • lvent says:

        Let’s tie them all to the stake Marilyn, like the Indians would do!! They would probably love to help us!!! They got robbed of all of their stuff just like they are trying to do to all of us!

    • lvent says:

      Great Job Leapfrog!! I love the Huff Post!!!!!
      Burn Baby Burn!!!!! Burn the mother down!!!!

    • housemanrob says:

      ……….and the rabbit hole gets deeper and deeper…..

      • lvent says:

        This is incredibly sneaky and this is all treason!!!!! This must get out into the maistream somehow!!! WAKE UP AMERICA THEY ARE STEALING YOUR WEALTH AND YOUR COUNTRY!!!!!!

      • lvent says:

        WAKE UP AMERICA!!!!! To foreclose any property in America a creditor must prove it has Article 3 standing and prudential standing, it must prove is is a credior and it must prove that the note is a negotiable instrument…….!!!! THESE PRETENDER LENDERS CAN’T, THEY DESTROYED THEIR CHAIN OF TITLE AND THEY DESTROYED ALL OF THE NOTES TO COVER UP FOR ALL OF THEIR COLLATERAL FRAUD!!

  3. housemanrob says:

    Once is happenstance,twice is coincidents,,,,,three times is enemy action. Time to leave your comfort zone and……….STOP PAYING FOR EVERYTHING….I HAVE…AND STILL COULD HAVE GONE ON LIVING THIS FANTASY! Imagine, no money for the banks to collect…..they go broke! let us end the reins of the TBTF banksters!

    • housemanrob….” three times is enemy action “…..3 earthquakes this past week in America. some who are experts on weather are even questioning this…all quakes felt thousands of miles apart….in one week.
      YES…the time is now for action…I stressed this in my other comment….but I actually believe the demons of this government and the secret hidden demons want America to start ‘ something ‘…I feel that would give them a chance to ‘ do as they have planned to do ‘….but either way we must fight for our country and our rights….I agree…let us end the reins of the TBTF banksters. Let us end this government of TREASON….as people are saying…BURN BABY BURN…..LET THE FIRES OF HELL CONSUME AND DESTROY THE EVIL.

      • lvent says:

        Marilyn, Or maybe the hurricane!!!! I think “someone” is trying to tell them they are all washed up!!! The digital wealth demon would still exist though!! Cut up those credit and debit cards America and stop using their banks and paying a fraudulently induced mortgage!…….if they can’t collect interest and fees and recycle old debt that will kill them…and their microchip!!! Wall Street created 40 trillion in collateral fraud and took out the equivalent of 10 mortages on one house! These crooks rang America up with unsustainable debt and it was intentional!!!….BURN BABY BURN!!!

      • I VENT…. So far this has not effected my health….but it sure has helped to concience me my thoughts and opinion has been on track…..and that goes back many years. I know some folks will eat crow that thought I had flipped thru the years….while others agreed with me. These same non-believers need to meet I Vent….LOL….she will explode their brain with plenty of knowledge…moreso than me. But you are a fighter and fighters are strong….and we are thankful for what you do to this forum…you get the people thinking of what is really going on….the real dirt.

      • lvent says:

        Kudos Marilyn! This website has been a lifesaver for sure and really taught me A TON and really lead me to everything I know……It brought us all together to have a place to discuss this terrible time we are all having and we have all helped each other out a ton here..I was in the car tonite running a few errands and happened to put on an a.m. radio show and was horrified when this Wall Street schill came on the radio and started to spout out all kinds of b.s. about the only way to fix this economy is to start kicking people out of their homes and it will be painful for a while but it has to be done..He said that, now brace yourself Marilyn, THE GSE’S HAVE PAID A HEAVY PRICE FOR NOT BEING ABLE TO FRAUDCLOSE!!!!..I want to find out where this piece of garbage lives and drag him out of his house and tie him to a tree and you can only imagine the rest… I tried to call in because I was going to let him and the radio show host have it (she said NOTHING IN OUR DEFENSE!) but the line was busy forever and I never got through so that piece of garbage got away with it and NOT ONE PERSON called in to tell him off..They are still talking about the Madoff scandal when that Ponzi Scheme was a fart in a windstorm compared to the Bigges Ponzi Scheme Swindle and Heist in history by Wall Street and the GSE’s and all of their evil minions and cohorts. I am going to be calling that show back and every radio talk show I can get through next week and I am going to give some people a who don’t have a clue about this 40 trillion dollar collateral fraud mortgage ponzi scheme backed by zero and tell them how every piece of property commercial and residential has about 10 mortgages or more on it…and if they say well that is what they did then I will tell them to do the math, they rang us up America……and they destroyed the notes and the chain of title to THEMSELVES, NOT US……Norman Goldman is the only MEDIA person I ever heard say they don’t have the NOTES AMERICA!!!! DING DONG AMERICA, WAKE UP FOR THE LOVE OF GOD THEY ARE STEALING YOUR COUNTRY!!!…Michael Savage ripped Wall Street and the Hedge fund mgrs and the Gse’s BIG TIME for a while but I never heard him say how bad they rang us up or how they don’t have the NOTES!!!! These people just keep talking about the same thing Marilyn, politicians are going to save us!!!! Like George Carlin says stop voting for these rich c–k s–kers who don’t give a f–k about you!!! We should all start calling in to radio shows and commenting on facebook on the tv news crawl llines…I was watching FOX this morning and some people were really saying some great stuff!!!! Gotta start sneak attacking these bastards Marilyn!!! George Carlin said they are coming for your social security money so they can give it to their criminal friends on Wall Street..BUT NOBODY LISTENED….!!! 9/11 and the 40 trillion in collateral fraud backed by zero was only the begining!!!!! THEY WANT IT IT ALL…….like George said and if we don’t wake up, they are going to get it all, they almost have!!!!!!

    • housemanrob says:

      STOPPING THE CASH FLOW NOW WOULD KILL THE TBTF BANKS NOW…………FOR THEY ARE DESPERATE FOR CASH AND KNOW THAT THEY ARE VULNERABLE TO…………..THE NAKED SHORTS FROM HEDGEFUNDS LIKE JIM CRAMER…..ALL HE HAS TO DO IS GIVE ONE NEGATIVE BANKSTERS REPORT AND IT IS …………..SE LA VIE!

      • lvent says:

        Rob, Jim Cramer is so obviously playing mind games for the illuminati..His show is as subliminal as the bastards could possibly get if you know what to look for it is so plain is day….it could blind you!!!! You will know illuminati messages in movies because there is red in every scene..same thing with the MSM or the politicians if you see them wearing red they are telling you this is coming from their owners. The number 11 is very symbolic to them as well..they are all diabolical, maniacal and sneaky and evil as hell!!

  4. 2 Pirates Over 40 says:

    Once again, no help for the people of this great country, our government doesn’t give a rats ass….
    were still waiting for our original bailout from years ago…..

    • THE ONLY HELP YOU ARE GOING TO GET IS TO HELP YOURSELF….OR UNITE WITH THE COUNTRY AND ALL FIGHT TOGETHER….THERE IS NO GOVERNMENT TO SEEK HELP FROM…WASHINGTON IS NOT FOR THE PEOPLE OF THIS COUNTRY…WASHINGTON IN THE PAST AND NOW IS FOR THE VERY ONES WHO WANT AMERICA DOWN…THE NEW WORLD ORDER….THAT IS THE OBJECT OF THIS WHOLE MASSIVE FRAUDULENT CRIME….OBAMA IS A SPOKESPERSON FOR THE NWO…HE IS NOT FOR THE PEOPLE OF THIS COUNTRY….PLEASE LEARN WHAT IS GOING ON…..I FEEL YOU KNOW NOTHING…..SOON YOU WILL OWN NOTHING, NO JOBS, NO FREEDOM, NO RIGHTS, NO FOOD….WAKE UP !!!!!! THIS IS THE LAST CHANCE TO SAVE OUR COUNTRY…….DO YOU WANT TO BE IN THE FEMA CAMPS THAT ARE ALREADY BUILT HERE IN AMERICA? AND IT’S NOT A CAMPING GROUND BY ALL MEANS…………………………

  5. lvent says:

    I heard about this on WALL STREET OWNED FOX NEWS YESTERDAY…They were talking about letting homeowners rent their homes until they “re-establish” their credit (after these MO FO’s are WHO INTENTIONALLY RUINED OUR CREDIT so they could STEAL homes they DO NOT OWN.) and then sell them back their homes..I spoke with an attorney about my fraudclosure..He asked me what my goal was and I told him I want NO LESS THAN a FULL LOAN RECISSION…He told me o.k. but, now the (New World Horder owned) banksters want to give homeowners principal reductions of half…….Nice, so in other words, at our ages our homes will never be paid for unless we win the lottery.IF THEY CAN’T STEAL IT THEY NEVER WANT YOU TO OWN IT……I am not signing shit…I will fight this Ponzi Scheme until I get a full loan recission and clear title to my home..

    • housemanrob says:

      Vent, Your going to drive youself crazy following Wall street……not a WORD OF TRUTH!

      • housemanrob says:

        ,,,,,but your right….I won’t sign shit either!

      • lvent says:

        I can only watch for a few minutes here and there Rob because you are right, they are bad for my health. I only check in now and then to spy on the enemy camp and see what their up to and it is never nothing good of course….Obama has too many owners. He is a slave to the Establishment..Some one said we need a true american patriot as the next president or we are doomed..I don’t know who that might be. I don’t trust any of them.

      • I VENT….THIS IS WHY I SHUT THE TV OFF OVER 5 YEARS AGO….IT PISSED ME OFF BEYOND WORDS…THE LIES AND COVER-UPS WERE SO THICK…AND i HATE A LIAR….SO NO MORE PAYING FOR SHIT THAT WAS ALL LIES…I FELT THIS WAY WHEN BUSH WAS IN AND NOW MORE THAN EVER. i LEARN FROM INTERNET AND READING….AND SO FAR i HAVE LEARNED PLENTY..PROBABLY MORE THAN TV AND MEDIA WILL TELL……
        ONE MUST NOT TRUST WHAT COMES FROM THE MOUTHS OF THE DEMONS……ONE MUST NOT SIGN ANY PAPERS DEALING WITH THE DEMONS….IT IS ALL TRICKERY. DOING SO IS A WAIVER TO RELEASE THE DEMONS OF ALL FRAUDS…HALF OF PRINCIPAL IS NO DEAL…THE PRINCIPAL WAS FALSELY INCREASED BY A FRAUD TO BEGIN WITH…SO A CUT IN HALF IS NO BARGAIN SINCE THE BANKS DID NOT LEND ANY MONEY FOR THE MORTGAGE…THEY LOSE NOTHING..YOU DO…..NO BANK WAS THE CREDIOR ON THE MORTGAGES…THEY HAVE NO RIGHT TO EVEN SUGGEST TO LOWER THE PRINCIPAL…THEY ARE A NOBODY…THEY ARE THE CROOKS WHO FAKED THE MORTGAGES. WITH NO MONEY INVESTED…..THIS FALSE ACT WAS TO GAIN ON THE NOTE AND MORTGAGE WITH YOUR SIGNATURE TO BE — USED FOR THEIR OWN BENEFIT.OF FURTHER GAIN….AND FRAUD.
        ..

  6. Jeff Garnett says:

    Good riddance administration. Thanks for reminding us we’re on own.

  7. xxxxx says:

    I have a mod and am still screwed and the MERS monster owns my home… RIGHT?? not a monster at all just psychobabble in print! Lift the curtain to expose the wimpy thieves, this is what is happening now, more thievery.. the OZ syndrome in full force. Oh and we are going to pay again, just like a bad divorce, always paying for nothing and I am a female saying this but I do know how to see the unjust BS most of the time, another another prime example, bail out the gov. banks, TBTF crappers on the citizens but no restitution for the people. Now we have our own local government changing the terms of our fake mortgage because of TRASH service and was quoted as having no choice about it, now paying more for trashier service just like what we are reading now trashy service ……..Keep fighting people!!!!! If I am going to pay more I am going to BITCH more to those stealing it and yelling about their sub-par products, they know quite well in my county as I have stated the corruption in print and then I got a little attention and will get more as our subdivision has a meeting with the elected thief. Keep pushing people for your voice on everything..local and national.

    • Heck says:

      Wimpy thieves with racketeering lawyers who buy or extort protection for their PARTNERS in crime. These lawyers are not lawyers at all, but co-racketeers who belong UNDER the federal prisons!

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