The Obama administration’s mortgage foreclosure prevention program hasn’t caught on as some had hoped, according to a treasury department report released yesterday. Recent data shows that only 12 percent of eligible borrowers have begun trial loan modifications under the $75 billion plan. Concern over the program’s efficacy is mounting in the wake of this report, with some analysts raising doubts over whether the preventive measures will be enough to slow foreclosure rates. Even worse, Bob Caruso, Lender Processing Service’s executive vice president for strategy, said that many of those trial modifications might not be enough to rework troubled mortgages. “I think they will be lucky to get 50 percent [of the trial modifications] to turn into real modifications,” Caruso said.
12 percent participation rate raises doubts over foreclosure prevention plan
September 10, 2009 01:12PM
September 21, 2009 at 6:18 pm, Anonymous said:
there is no modification programs… its all a bunch of BS
September 10, 2009 at 10:33 pm, Anonymous said:
Of course they will be lucky to convert to real. Banks aren’t approving modifications because income levels are not high enough. Even though clients continue to pay their mortgages and are struggling to do so – they will not modify loans. So its a catch 22; we pay our mortgage on time and struggle to do so – but our income leveles aren’t high enough to warrant modification – which leaves us in the doghouse because since our incomes aren’t high enough to modify we end up defaulting on our loans!!!