The Obabma Administrations foreclosure prevention program isn't really doing much. According to Treasury officials, only about 4% of troubled borrowers have received long-term help under the program.
The report released last Tuesday shows that loan servicers have converted 31,382 borrowers from trial modifications to permanent ones as of November 30.
Since the program began last Spring, a total of 759,058 trial modifications have been issued. The amount of troubled homeowners who have received trial assistance has rose from 697,026 up from 650,994 the previous month.
Concerns have risen by the low number of permanent modifications. It is looking like the $75 billion plan is falling short of its goal to help 4 million delinquent homeowners.
The main reason that more modifications are not becoming permanent is the paperwork required to be completed for the long term modification.
Some 375,000 borrowers should be eligible to receive long-term help by the end of the year. Only one-third of homeowners who have made at least three trial payments have submitted all the forms necessary to complete the modification.
Treasury officials have reported that only 20% of homeowners have not submitted the paperwork. Banks are hiring third parties to assist borrowers complete the paperwork.
Although, the paper work may be completed, borrowers can still be denied permanent help if they are not meeting the program's criteria.
Have you tried to have your mortgage modified? Have you completed the necessary paperwork? Did you get permanent relief?
The report released last Tuesday shows that loan servicers have converted 31,382 borrowers from trial modifications to permanent ones as of November 30.
Since the program began last Spring, a total of 759,058 trial modifications have been issued. The amount of troubled homeowners who have received trial assistance has rose from 697,026 up from 650,994 the previous month.
Concerns have risen by the low number of permanent modifications. It is looking like the $75 billion plan is falling short of its goal to help 4 million delinquent homeowners.
The main reason that more modifications are not becoming permanent is the paperwork required to be completed for the long term modification.
Some 375,000 borrowers should be eligible to receive long-term help by the end of the year. Only one-third of homeowners who have made at least three trial payments have submitted all the forms necessary to complete the modification.
Treasury officials have reported that only 20% of homeowners have not submitted the paperwork. Banks are hiring third parties to assist borrowers complete the paperwork.
Although, the paper work may be completed, borrowers can still be denied permanent help if they are not meeting the program's criteria.
Have you tried to have your mortgage modified? Have you completed the necessary paperwork? Did you get permanent relief?
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