Watchdog: Housing programs reach only a handful

AP News
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Posted: Oct 25, 2010 3:01 PM
Watchdog: Housing programs reach only a handful

A watchdog report says that only a handful of homeowners have been helped by certain Obama administration housing programs.

The report says that 21 families avoided foreclosure under a program to reduce payments of borrowers with second mortgages. It says that 342 homeowners received permanent help from a program helping borrowers to sell their homes for less money than they owe to the bank.

Both programs were designed to be many times larger.

The report Monday was issued by the Special Inspector General for the $700 billion financial bailout. It accuses the Treasury Department of making misleading statements about other bailout programs.

The report credits the Wall Street bailouts with helping to stabilize the financial system.