Why the feds say a Ga. foreclosure program helped too little, too late

A federal audit released Friday said that slow response by HomeSafe Georgia, a program to stave off foreclosure during the mortgage crisis, helped contribute to the housing market’s slow recovery. In Clayton County, where these homes are located, some 30 percent of mortgages remain underwater. HYOSUB SHIN / HSHIN@AJC.COM

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A federal audit released Friday said that slow response by HomeSafe Georgia, a program to stave off foreclosure during the mortgage crisis, helped contribute to the housing market’s slow recovery. In Clayton County, where these homes are located, some 30 percent of mortgages remain underwater. HYOSUB SHIN / HSHIN@AJC.COM

The program was supposed to save Georgia homeowners from foreclosure through the worst real estate downturn in decades.

But HomeSafe Georgia was beset with complaints from the beginning that it helped too few, too slowly. Now a federal audit requested by U.S. Reps. John Lewis, D-Atlanta, and Hank Johnson, D-Lithonia, says the program soaked up $32 million in administrative fees, all while failing to help worthy applicants.

Read more at MyAJC.com.

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