Government to spend $3 billion to help homeowners

The latest round of funding pushes the total federal commitment up to $4.1 billion. The government already runs two other programs to help homeowners modify existing mortgages or make their monthly payments. The White House is authorized to spend up to $50 billion to help homeowners under the Troubled Asset Relief Program originally created by the Bush administration to bail out Wall Street. So far, existing government programs designed to help people to stay in their homes have met with little success. The rate of property foreclosures climbed 8% to 1.65 million in the first six months of 2010 compared to the prior year, according to RealtyTrac. Shiller sees significant likelihood of double dip The new program is meant to prevent further home foreclosures in 17 states plus the District of Columbia. Most of those states have experienced a rash of foreclosures that have depressed the housing market and local economy.

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