August 4th, 2009
11:14 AM ET
5 years ago

9% of late home loans get help

NEW YORK (CNNMoney.com) - Mortgage servicers have put nearly 9% of delinquent borrowers into trial modifications under the Obama foreclosure prevention plan, the Treasury Department said Tuesday.

That translates into 235,247 loans that were at least 60 days delinquent at the 38 loan servicing firms participating in the program. Institutions have extended modification offers to 406,542 troubled borrowers, or 15% of those behind in payments.

Under fire for the program's rocky start, the Obama administration says it is on pace to help up to four million homeowners over the next three years. The initiative was announced in February and the first institutions to join began accepting applications in April.

Tuesday's report come a week after the administration called servicers to Washington, D.C., to discuss ramping up the program's implementation afterhearing a flood of complaints from borrowers. Officials want to see 500,000 loan modifications under way by Nov. 1.

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soundoff (56 Responses)
  1. AG

    Clark Howard,a personal finance radio & TV personality, yesterday said that about 80% of loan modifications completed so far are now being paid on time. All in all, I do think this outcome is better than having to foreclose on people.

    August 4, 2009 11:26 am at 11:26 am |
  2. joe smith

    anybody seen, or read, or been privy to the Freddie Mac report? This report was to be made public May,2009. This report was to have been given to the President of The United States. This very vital financial report goes to the heart of our financial problems, and would be a barometer as to where we are headed as a Nation financially; but all we have are a bunch of smokescreens, and NO REPORT, what gives..

    August 4, 2009 11:26 am at 11:26 am |
  3. yuri

    Unless one sees results on the ground literally, it will be an upheaval task for the BHO blokes to continue convincin' the citizens with the chorus of cooperation from mortgage companies.

    August 4, 2009 11:28 am at 11:28 am |
  4. TCM

    There should be an "irresponsibility," test for those wanting Obama's mortgage modification....it appears that each time a plateau is reached, he continues to "dumb down," the criteria, which will result in lower paid, lower skilled, workers will continue to get into houses that they cannot afford...all in the name of "fairness......" We will repeat this foreclosure cycle until either Obama gives away houses for free, or he's removed from office....

    August 4, 2009 11:30 am at 11:30 am |
  5. Keith in Austin

    Just more taxes fot those of us who actually PAY their bills! Classic shifting of wealth in America. Classic Socialism from this slick-talking Chicago Liberal!

    August 4, 2009 11:34 am at 11:34 am |
  6. Deb

    It is great that this program is working. Our President will get this country back to where it should be.

    August 4, 2009 11:48 am at 11:48 am |
  7. pat c

    just another well done policy our president has put into place to help the american public. we voted for him to take care of us and i think he is doing a fine job, even with the republicans smearing him beyond disbelief. my trust is with this president and the truth will prevail. creme always rises to the top. time will be on barack obama's side here and at the end of 8 years he will be known as the best president the US has ever had.

    August 4, 2009 11:50 am at 11:50 am |
  8. Chris (SC)

    Wish they would have done more and done it more quickly but not bad considering how hard it is to get anything done in the mortgage industry.

    August 4, 2009 11:51 am at 11:51 am |
  9. patrick

    Bank of America sent me and my partner a mod plan. Lost my job and before I did I knew what was coming and went back to school. Have gotten perfect grades and will be done with nursing in about 2 years. Back to the modification they sent me... I am not asking for a handout either... their modification raised my payment by 450 dollars... thanks.... if they had a program that would lower a payment for 5 years and allow us to get on our feet, extend the mortgage out 5 years and take nothing off the principal, just merely lower the payment so I can finish school.... they would actually make more money then they would have traditionally and we would be able to keep our home. Common sense is something the banking industry needs help with. Trust me, I know, I was in it.

    August 4, 2009 11:52 am at 11:52 am |
  10. xavier

    Keith in Austin,
    Hey, where was the complaining when Bush gave tax breaks to those who already had more money than they needed? Didnt Bush said that the extra money would lead to more prosperity? Ooops, I guess that he must have been mistaken.

    August 4, 2009 11:53 am at 11:53 am |
  11. Kevin in Ohio

    I'm starting to think I have made a big mistake by paying my mortgage on time every month. Seems I should be less responsible...then I might be able to get some goodies from this administrtaion.

    August 4, 2009 11:54 am at 11:54 am |
  12. JP

    Without a doubt there are people who did the right thing and hit bad luck and could not pay their mortgage. We all know that many people did not do the right thing. It has been stated by the head of the FDIC that if someome applies for the 2% taxpayer subsidized mortage rate, that there is no investigation done to see if the person lied on their original application. What about the person who took equity out of their house to buy a new car and flat screen tv who now can get a 2% loan with my tax dollars do I get to have their new car and tv since mine are old and my taxes are keeping them in their house?

    August 4, 2009 11:56 am at 11:56 am |
  13. KAREN

    Once again throwing those of us who are working 2 jobs to keep our payments on time under the bus. Lets keep rewarding bad behavior and see where this will get us.

    August 4, 2009 12:02 pm at 12:02 pm |
  14. Johnny DC

    I have paid my mortgage on time every month. I even pay extra on occasion to pay down the future debt and interest.

    WHERE IS MY HANDOUT, SOCIALIST? WHERE IS MY REWARD?

    August 4, 2009 12:05 pm at 12:05 pm |
  15. Dave

    While this is definetly a "give away" from our Government, at least its intention is to keep people in their homes so not as against this as other Government programs whose sole intention is to shift wealth from wage earners to the welfare state.

    Would rather spend billions on this program than bailing out a failed GM at least this helps people

    August 4, 2009 12:16 pm at 12:16 pm |
  16. Melissa

    Johnny, then obviously you CAN pay it so what are you whining about? The people that are being helped are those that CAN'T pay it due to job loss (which is NOT their fault), or insane legal terms that they didn't understand when they signed up and the banks used to milk them dry of cash.

    Obama is doing a good thing. And what he's doing is working. Home sales are up, home prices are up, the down is at a 9 month high, and things are looking better than they have in a long time. Obama fixed it. Bush is the one that trashed it. Obama is exactly what we need and anyone who thinks the Republicans would be better are smoking something. The Republicans are the reason we are in this mess in the first place.

    August 4, 2009 12:24 pm at 12:24 pm |
  17. Truth-Bomb Thrower

    So why should anyone act responsibly and intelligently. If you screw up, the federal government will simply come along and bail you out. We might as well ALL be irresponsible spendthrifts and live beyond our means. We can then just sit back and let our fellow tax-payers clean up after us.

    Most of the people who are in trouble with their mortgage are wreckless, irresponsible, self-indulgent, greedy fools who signed contracts they either did not understand or never even read in the first place. I say let them lose their undeserved homes. They can move into housing they can actually afford and start acting like adults. This is the only way the market is going to correct itself. The government needs to STAY OUT OF IT!

    August 4, 2009 12:26 pm at 12:26 pm |
  18. Steph

    I would rather see my neighbors get a loan modification than to have a forclosed (empty, collecting dust and god only knows what else)house next to me!

    Enough with the whining about wanting your own bailout or modification. I have been responsible and lucky. I paid my bills on time, and I haven't been laid off from my job. I don't see the benefit of whining. I'm just happy I don't have the stress that the people who need modifications have!

    August 4, 2009 12:28 pm at 12:28 pm |
  19. Truth-Bomb Thrower

    So why should anyone act responsibly and intelligently? If you screw up, the federal government will simply come along and bail you out. We might as well ALL be irresponsible spendthrifts and live beyond our means. We can then just sit back and let our fellow tax-payers clean up after us.

    Most of the people who are in trouble with their mortgage are wreckless, irresponsible, self-indulgent, greedy fools who signed contracts they either did not understand or never even read in the first place. I say let them lose their undeserved homes. They can move into housing they can actually afford and start acting like adults. This is the only way the market is going to correct itself. The government needs to STAY OUT OF IT!

    August 4, 2009 12:28 pm at 12:28 pm |
  20. Fan of Common Sense

    Also known as the "Acting and Spending Responsibly Tax" on the rest of us.

    (The mortgage companies will charge us responsible people more for our mortgages and other financial services to pay for the breaks they cut for the dead-beats and the spend-thrifts, at the behest of the federal government.)

    August 4, 2009 12:35 pm at 12:35 pm |
  21. Funny Biz

    I have a mortgage loan with Chase acquired through WaMu. I have had to resubmit my application 3 times after my initial request in March. It is a very frustrating program. I've been told by reps that submitted information was received, only to call a week later and be asked to submit again as previous application was "thrown out" due to missing information.Chase and other servicers participating in the program seem to have some agenda which I can't put my finger on.

    August 4, 2009 12:36 pm at 12:36 pm |
  22. m jeff

    Most people probably was able to afford their mortage until greed sent their job overseas.

    August 4, 2009 12:37 pm at 12:37 pm |
  23. Mississippi Mike

    And you want this same group of bumbling morons to be in charge of your health care system...

    August 4, 2009 12:38 pm at 12:38 pm |
  24. Expat American

    It's almost as if Republicans believe that only Democrats are the ones who will benefit from this.

    Would be okay if a Republican benefited from this as long as said Republican believes all brown people are Muslim and all Muslim are terrorists? And of course, President Obama is a Muslim.

    By this justification, then all is forgiven. Country First!

    August 4, 2009 12:45 pm at 12:45 pm |
  25. makesUwonder

    "406,542 troubled borrowers"...............................bet most of these "troubled borrowers" will also be "troubled borrowers" when they get that cash for clunkers car loan.

    August 4, 2009 12:48 pm at 12:48 pm |
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