A true American success story.....

I just could not pass this one up...

It appears that Pennsylvania has a foreclosure rescue plan that is making the Obama Adminstration green with envy. As described in the following article: http://money.cnn.com/2010/03/08/news/economy/mortgage_help_for_unemployed/index.htm?source=patrick.net

"The Pennsylvania Housing Finance Agency offers the jobless and those suffering financial hardship loans of up to $60,000 for as long as three years to cover their monthly payments or take care of their arrears. Created in 1983, the program boasts an 80% success rate in preventing foreclosures."

Moral (or lack thereof) of the story: when you give folks essentially free money for 3 years, you can prevent foreclosures. Huh? Well at least this appears better than Freddie and Fannie's foreclosure prevention programs.

Of course to expect that the success rate of this program (apparently 80% over the last 27 years) will remain as high during the worst recession and greatest housing bust since the Great Depression will require a total suspension of all critical and rational thought. But hey, these are times for Hope and Change, Moral Hazard and widespread bailouts so I was eager to read about a featured success story in the article:

"Awilda Mercado is thankful that the emergency loan program in Pennsylvania continues to serve the state's residents. In 2008 she lost her factory position and her husband had an on-the-job accident that left him unable to work. To help her stay in her York, Penn., home, the agency took care of her arrears of $7,386 and paid four months of her mortgage.

Now that she's receiving unemployment and her husband is on disability, the Mercados have been able to resume their mortgage payments. They also are reimbursing the housing agency, often sending in more than the $25 minimum payment.

They helped me not only save my home, but got me back on my feet," said Mercado, 52, who has three grown children."

So let me get this straight, now that they are receiving money from the government in the form of unemployment and disability payments, they can afford to pay back their mortgage (no doubt to a federal government owned-entity) and 're-pay' the state government program at a rate of $25 bucks OR MORE ($26?)a month.

This is the featured success story!?!?!?

Well, I guess at least they are using some of their government support to pay back their debt to the government. Now in Obama's America that is a success story!