Will President Trump clean up the government housing and mortgage welfare scam? One wonders.
Are you aware that the U.S. Government is propping up mortgage deadbeats across the nation? Can’t afford a 30 year mortgage? No worries mate, the U.S Government will give you a loan modification. How does a 40 year mortgage grab you? Heck Mr. broke homeowner, we will even allow you to modify and take out a new mortgage every six months if you can’t pay your bill.
According to HUD data, some folks have repeated this process five and six times. So who is subsidizing this welfare operation? Why the U.S. taxpayers of course.
So who is exactly benefiting from this welfare program? Broke homeowners and hedge funds.
So why is this being allowed to happen? In my quite cynical view, the real reason is so Blackrock and other hedge funds can scoop up more housing inventory at bargain basement prices. And, the federal government simply allows this scam to continue because they do not wish to be blamed for foreclosing on thousands of families across America and do not have a grip on what is needed to correct the problem.
Once the Feds have a few thousand foreclosures or re-financed deadbeat loans on their books, they pool these loans (houses) into a package deal and sell them off to hedge funds and other large investors who then kick out the deadbeat homeowners and put the home into the rental market thereby driving up rents across the nation or selling the homes for exorbitant profits.