The TARP Oversight Group is a bit concerned about the degree of progress in Treasury's mortgage modification program. While helping out 500,000 households isn't something to be scoffed at, there's a long way to go before hitting the administration's target of 3 to 4 million. The report issued a word of caution and a plea to those in Treasury to rethink the program to pick up the pace.
"Rising unemployment, generally flat or even falling home prices and impending mortgage-rate resets threaten to cast millions more out of their homes," the report said. "The panel urges Treasury to reconsider the scope, scalability and permanence of the programs designed to minimize the economic impact of foreclosures and consider whether new programs or program enhancements could be adopted."
All true but we live in the US of A and we have the great equalizer to make problems like this go away.There is an easier, more American way to do this than going through a Treasury sponsored program. And some people are already taking advantage.
"Borrowers are looking to the legal system for help in keeping their houses," said Gary Klein, a partner in Boston-based Roddy Klein & Ryan, which focuses on consumer law. "There are more cases pending than I've ever seen in my 23-year career."
Homeowners are seeking the courts' help either individually or as part of class action lawsuits. With foreclosures continuing to rise, borrowers are looking to force banks to modify unaffordable loans or to stop them from foreclosing on homes. Often, they also seek money.
So if you can't get recourse to your predatory lender through the Treasury, try predatory litigation.
TARP Oversight Group Says Treasury Mortgage Plan Not Effective [Bloomberg]