Power Breakfast: Foreclosure prevention not working, Southwest-AirTran merger, taxes, SEC, Spain debt

Now we know one of the reasons for record foreclosures in metro Atlanta.

The Obama administration’s foreclosure prevention program was blasted in Washington on Tuesday as “ineffective,” ACJ staffers Scott Trubey and Bob Keefe report.

The Congressional Oversight Panel over the program criticized the Treasury Department for not holding accountable the big mortgage companies and servicers.

The Home Affordable Modification Program gives mortgage companies financial incentives to modify mortgages for struggling homeowners and gives borrowers incentives to repay the reworked loans and stay in their homes, the reporters write.

But borrowers have complained of a baffling bureaucracies, botched paperwork and abuses by banks apparently ill-equipped to handle the crush of struggling homeowners seeking aid, Trubey and Keefe report.

Also in the AJC:

In other media:

- Henry Unger, The Biz Beat

For instant updates, follow me on Twitter.

11 comments Add your comment

Destin Dawg

December 15th, 2010
6:02 am

typical gov’t bureaucracy …. free market economics is painful but needs to be allowed to work…. I remember home loan rules of Econ 101…. put down 20 % and payments > 30 % of take home pay… Hey 2000 sq. ft. homes are plenty big enough for family of 4 ???? !!!!! Huge homes = Huge taxes and utility costs !!!!

yck

December 15th, 2010
7:30 am

not a fan of southwest! ever flown on ‘em? crappy, and i wish they would just stop TALKING!!!!!

Economics

December 15th, 2010
7:46 am

More Foreclosures to come, housing is gonna get crushed to a tune of 15-20% drop in values over the next 18 months. 10% will be the new TRUE normal unemployment, get used to it. New financial life style coming to America, get ready people.

shadow7071

December 15th, 2010
8:02 am

Economics, I agree with you and add that underemployment will be at around 20%. It’s disgusting but we are rapidly becoming a second rate country economically speaking. If congress and the president can’t come to terms on taxes how will they ever effectively deal with unemployment and jobs and all that needs to be fixed to bring business back to the U.S.?

Chad

December 15th, 2010
8:09 am

Any time we try to alter free markets we are fixing for disaster. This applies when we are greedy on economic upswings, as well as try to soften the blow of downturns. Without a doubt I am certain that our current recovery would have been more meaningul and faster if we had not tried to bail out participants in the 2008 collapse. Softening the blow really only rendered the recovery less effective!

Destin Dawg

December 15th, 2010
8:30 am

only possibility would be complete Gov’t reform….. Term Limits, fair flat tax, tort reform to really reduce medical costs, line item veto to cut out PORK…… it’s easy to vote for CHANGE…. but you just got another political animal…. you have to CHANGE the system with total Gov’t reform !!!!

shadow7071

December 15th, 2010
9:06 am

Look at Europe and the U.K. marches, demonstrations, and rioters in the streets. If we don’t effectively address unemployment, underemployment, foreclosures and Government this may be where we are heading. And don’t say it can’t happen here… remember the 60’s.

HTH

December 15th, 2010
10:21 am

I think if we all go out and buy just a little something. That might stimulate the economy. It’s difficult for folks right now. But its just like Mama said. When you get oranges by mistake. Make orange juice. Brightly decorated homes. Filled with ornaments and lights and stockings. Can cheer you up.

I don’t know about you. But everything works around here. I try to stay busy. I am sure. That in this great country we will rise up again. To our glory days. All we have to do is have a song in our heart. A kind word on our lips.

TnGelding

December 15th, 2010
9:42 pm

The foreclosure mess has been mishandled from the beginning. Somebody should have realized early on this was not your normal meltdown. Bush and Obama should have collaborated on a proposal right after the election since Bush hadn’t done anything yet. At this point, it’s hard to say what to do. It looks like to me it would be better to let the owners live in the houses for free if they’ll just keep them maintained until things are back to something resembling normal. Or what about matching vacant homes with homeless vets? Or homeless, period? We’re sitting on $55 trillion in household wealth, why not put it to good use?

Diane

December 17th, 2010
8:16 am

Diane

December 17th, 2010
8:48 am

women business owners in atlanta are leveraging their resources to prevent situations like this.