The Real Deal Miami

More homeowners failing trial modifications

May 18, 2010 03:45PM

President Obama

President Barack Obama’s foreclosure prevention program took a major hit in April, when more than 122,000 homeowners had their trial modifications cancelled, according to CNNMoney. This latest crop of failed trial mortgage modifications brings the tally to 277,640 since Obama’s plan was launched about a year ago. So far, just 68,000 troubled borrowers were able to transition out of the trial program to a permanent modification. Many of the modification attempts failed because borrowers either could not make the required loan payments or did not turn in proper paperwork, according to administration officials. [CNNMoney]