Government To Stop Mortgage Help For Unemployed

October 07 00:00 2011

New York, October 7 ( – The Federal government announced the closure of its mortgage help for unemployed scheme through which it funds the mortgage payment of unemployed homeless people. The program which did not have wide reaching effects, though it could have because of the strict implementation criteria built in is being criticized world over.

Only half the funds allotted to the scheme were spent. The reason for this could have been the fact that only 10,000 to 15,000 applications got through the scanner. This number is abysmally small considering the fact that at least 10 times more people had applied for the aid.

The criteria that would help an American qualify for the program was that they must have lost at least 15% of their income due to the economy and/or their own medical condition, they must be able to prove that they will be able to resume normal payments if they found a job and their mortgages must at least be 90 days delinquent. The mortgage help however had to be capped at $50,000 or 24 months whichever came earlier.

This scheme however failed to help people as the government officials would use a complicated formula to determine eligibility and it would usually be in the negative.