From Tami Luhby at CNNMoney: Can't make your mortgage? Get an emergency loan
"All we needed was a break," said Erin Smith,33, who feared her family of five would wind up homeless. "We knew once we found employment, we could start making those payments."
A break came in the form of the Pennsylvania Housing Finance Agency's emergency mortgage assistance program. the agency gave them a $30,000 loan to cover their arrears and real estate taxes.
The program, which has distributed $450 million on behalf of 43,000 homeowners since its inception, has an 80% success rate in helping borrowers avoid foreclosure.
"If you allow people some time to find a job, they can keep their home, which saves their family, their neighborhood and their communities," said Brian Hudson, the agency's executive director.
This sounds great doesn't it? But is it just a way to keep borrowers in debt. Not only debt, but more debt. Now you have a mortgage you can't pay and another bridge loan to pay on top of it. Other state are looking into adopting this same program. What do you think? Good or bad idea?
Here's what some readers thought of this program:
Kyle Read wrote: Does anyone else here see how enslaved we are to major financial institutions? Houses are priced out of of our reach ON PURPOSE! They never want you to pay off your mortgage because they need you just like cancer needs a host. I bet if we all stopped making mortgage payments we could bring the system to its knees!
John G Phelan wrote: CNN is deleting posts that don't conform to their Pro Socialism policies. i had all my posts deleted and I all I did was complain about Government spending! Can u say propaganda and bought and paid for?
Seems to me that these fellas are on to the Financial Elite just like us. Are you in? Or are you going to keep drinking the Kool-Aid?
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