A housing program designed to help military families who are underwater on their homes has proven too popular and is now out of money.
The housing bust has been especially difficult on military families, the Wall Street Journal noted, because many who bought houses during the boom and have been ordered to move across the country must sell their house at a loss rather than wait to recoup some value.
Though policymakers tried to remedy the situation in 2009 by expanding a 1960s program that provided benefits to soldiers who were reassigned and owed more on their home than it was worth, it is now out of money.
The program has already paid out $1.1 billion — $250 million more than the amount approved by Congress — and now many military families, especially those who bought homes more recently, are struggling to get the benefits and are selling their homes at a loss because of reassignments. [WSJ]