The sale of previously owned homes in the United States dropped 27 percent in July to their lowest level in 15 years and US foreclosures are up.

Over a year ago US President Barack Obama implemented the Home Affordable Modification Program (HAMP) which was designed to help unemployed homeowners avoid foreclosures by allowing bank to lower interest rates and mortgages.

Reports show that the program has not quite succeeded. According to Realty Trac nearly 300,000 homes have been foreclosed upon and only about 30,000 have received aid from the HAMP program.

Economist Max Fradd Wolff from The New School in New York said the program has failed because it is the wrong program; it is merely a “band-aid on a bullet would.”

Full story is available on RT.com