Have you bought more home than you can afford? Are you at risk of foreclosure? Well, Uncle Sam may be willing to bail you out of your bad decisions, thus encouraging more people to make more such bad decisions.
The more you subsidize bad decision-making, the more of it you will get.
I’m not a fan of these bailouts.
The New York Times reports: Homeowners at risk of foreclosure in 32 states can get emergency financial aid from the federal government, but they have to act fast. Deadlines are tight, and homeowners are already flooding the program with inquiries.
Within days of the program’s announcement last week, roughly 600 people had contacted CredAbility, a credit counseling agency in Atlanta, to ask for details, a spokesman says. CredAbility is one of 22 agencies chosen to administer the program by the federal government and NeighborWorks America, a nonprofit housing organization.
As part of the Dodd-Frank Act, Congress set aside $1 billion to help struggling homeowners.