Obama mortgage plan has 40% dropout rate

The Obama administration’s foreclosure prevention efforts are facing
major obstacles, according to the Associated Press, with more than 40
percent of the homeowners engaged in the president’s mortgage aid
program already dropped out. Of the 1.3 million participants who have
enrolled in the program since March 2009, about 30 percent — 390,000
— have received permanent modifications on their home loans, the
Treasury Department reported. While the program has been able to slash
mortgage holders’ monthly payments by $500 a month, on average, many
participants have complained that red tape and confusing paperwork
makes the program difficult to complete. Further compounding the
program’s problems, many of the borrowers who receive temporary
modifications have troubling transitioning to a permanent modification,
industry experts say, rendering the program largely ineffective. [Palm Beach Post]