Is Obama’s Mortgage Modification Program Failing?

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There is another option for many homeowners called a “short sale.” This is when the bank agrees to let the borrower sell the property for an amount that is less than the loan value. While the borrower still owes money on the loan, it can result in less of a hit to the borrower’s credit score. The Obama Administration is encouraging short sales by giving $3,000 in moving expenses to those who complete a sale or turn over the deed of their property to their lender.

One fundamental truth about the most recent economic downturn and real estate crisis is that there are some problems that don’t have simple solutions. The Obama Administration has engaged in quite a bit of effort to manage the economic downturn, and the magnitude of losses our economy took as a result of the real estate crisis simply can’t be managed by a quick government bailout. All the while, there are many who argue that the billions used to bailout Wall Street firms could have been used to bailout homeowners. The massive bonuses paid to Wall Street executives serves as a serious case-in-point.

Dr. Boyce Watkins is the founder of the Your Black World Coalition and a Scholarship in Action Resident of the Institute for Black Public Policy. To have Dr. Boyce commentary delivered to your email, please click here.

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