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Why Are Homeowners Fleeing from the Obama Housing Program?

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The Associated Press (Borrowers exit troubled Obama mortgage program - Yahoo! Finance) has reported that homeowners are fleeing the Obama Housing (also known as mortgage welfare) program.

Why is this?

The Obama Administration claims that homeowners will "get help in other ways."

That does not answer the question, however.

The labor markets are not improving, and I can't imagine people getting Census jobs and automatically feeling secure about paying their mortgages.

What's your theory?
 

Lord Tammerlain

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The Associated Press (Borrowers exit troubled Obama mortgage program - Yahoo! Finance) has reported that homeowners are fleeing the Obama Housing (also known as mortgage welfare) program.

Why is this?

The Obama Administration claims that homeowners will "get help in other ways."

That does not answer the question, however.

The labor markets are not improving, and I can't imagine people getting Census jobs and automatically feeling secure about paying their mortgages.

What's your theory?
The article did a good job explaining the most likely reason for people being dropped from the program

A major reason so many have fallen out of the program is the Obama administration initially pressured banks to sign up borrowers without insisting first on proof of their income. When banks later moved to collect the information, many troubled homeowners were disqualified or dropped out.

Many borrowers complained that the banks lost their documents. The industry said borrowers weren't sending back the necessary paperwork
The initial rush to get people signed up ( a mistake by the government) had people who were not eligable for the program sign up. When they needed to show proof of their qualifications for the program, they couldnt and were either dropped or withdrew
 
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