The Big O plans on helping out 9,000,000 mortgage holders stay out of foreclosure, to the tune of $75,000,000,000. (That’s 9 million mortgage holders and $75 billion dollars, as it appears in the article.)
I’ve ran this simple calculation twice on two different calculators and had someone else run it as well and we all agree on the number. Assuming you live in some bizarre alternate plane of reality and there is no government overhead in this program (yeah right), then this works out to $8,333.33 per family assisted. It’s been a long time since I had to do math with numbers that big (The Freehold’s budget has considerably fewer zeros attached to it), but I think I got the math right.
I’ve got to wonder just how this is supposed to work. By the time most people get to foreclosure, they’re considerably further than $8,333.33 in the hole, and the mortgage is only a part of what they owe. Even if it was 10 times that amount, the numbers show that most of these people will still lose the house–it just happens later.
This looks to me like yet another government sponsored FAIL in its embryonic stage. That’s what you get when you elect a bunch of socialist amateurs to run the country.
(And what about those of us who didn’t buy more house than we could afford, made a down payment, make our payments on time and don’t cause anyone any problems? Well, unless you pass a litmus test, you’re screwed in the New Socialist Unreal World. Maybe we need to lose our jobs and stop paying our mortgages so we can get bailed out, too.)