States Blame Federal Government For Failed Mortgage Remediations

What should not be a big surprise for any who read this site, now the states are blaming the federal government for not slowing down the rate of foreclosures hitting the market. There has been no slowing of the rate of foreclosures no matter what efforts the states take at counseling or programs they have implemented. And now the states need someone to blame for squandering the taxpayers money.

Of course, it is the Federal Government they are blaming for not throwing even more money at the problem.

The truly sad thing is that we all live under the illusion that bad decisions and circumstances can be re-mediated by the government. Well folks, bad things happen to both good and bad people. But trying to stop it is like King Canute trying to stop the tides. Markets are too powerful and we need to let this housing period run it’s course. Then the markets can get back to normal and people can start feeling positive.

The only thing the government can do is make matters worse and extend the pain for others. Oh, and spend more of our tax money making it seem like they really care.

“While there’s been a lot of effort put in by mortgage servicers and government officials, there has been little change in outcomes for homeowners,” said Mark Pearce, deputy banking commissioner for North Carolina. “We’re still treading water.”

The report comes as state officials, frustrated by what they view as the federal government’s inadequate response to the mortgage crisis, are taking increasingly aggressive steps to address the rising rate of foreclosures.

States such as Maryland, Massachusetts, Minnesota and Virginia are looking at extending the foreclosure process or have already taken such steps in an effort to give borrowers more time to work out repayment plans with their lenders. Rising foreclosures hurt not just troubled borrowers, state officials say, but also their neighbors and communities.