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Watchdog: Obama foreclosure program likely to fail
The Obama administration's signature foreclosure-prevention program is likely to be a failure and has not done enough to help struggling homeowners who owe more on their mortgage than their home is worth, according to a scathing new report by a government watchdog. And the program may even be pushing these homeowners further underwater.
The average homeowner may owe their lender as much as two-and-a-half times more than the home is worth, the Office of the Special Inspector General for the Troubled Asset Relief Program states in its new report examining the administration's year-old $75 billion Home Affordable Modification Program, citing November data from Fannie Mae.
The most recent data show that on average, homeowners in HAMP owe $1.14 on their mortgage for every $1 in their home's current market value, according to Treasury Department estimates cited in the report.