Wednesday, June 23, 2010

$75 billion mortgage modification program not working

The Cambodia News.Net
Wednesday 23rd June, 2010

People in danger of losing their homes in the US have complained that the Obama administration's $75 billion mortgage modification program is a flop.
People in danger of losing their homes in the US have complained that the Obama administration's $75 billion mortgage modification program is a flop.

More than a third of the 1.24 million borrowers who have enrolled in the program have now dropped out.

The drop-out figure now exceeds the number of people who have managed to have their loan payments reduced to help them keep their homes.

Around 435,000 mortgage holders have dropped out of the scheme since it began in March 2009, while 340,000 homeowners have received permanent loan modifications and are making payments on time.

Dropouts have cited problems with banks not adjusting loans for the most needy without proof of income, lost documents or slow paperwork.

1 comment:

Sara said...

I agree with you that to some extent the Home Affordable Modification program has been a flop. The government as well as borrowers had lots of expectation from this program but most of the lenders could not permanently modify the loans in most of the cases. Thus, a large number of borrowers who enrolled for Home Affordable Modification program have dropped out of it. In most cases, the loss of original mortgage documents on the part of the lender was the main reason why the borrowers could not receive a permanent modification.