Experts: Obama’s Mortgage Relief Program a Failure

Tuesday, 05 Jan 2010 09:29 AM
By: Dan Weil

President Obama’s program to give beleaguered homeowners mortgage relief has only exacerbated problems, experts say.

That’s because the $75 billion plan, begun in February, merely delays the day of reckoning for housing market participants, the experts tell The New York Times.

Those participants include homeowners who are in houses they can’t afford, and banks that are reluctant to declare losses on soured mortgages.

Experts say the administration’s program puts off the pain that is necessary for future gains in the housing market.

“The choice we appear to be making is trying to modify our way out of this, which has the effect of lengthening the crisis,â€