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. Steph

    All the good news lately is making me dizzy. The stock market, the pullout of combat troops from Iraq, the success of Cash for Clunkers, the new and improved GI Bill, Sotomayor's upcoming confirmation on Thursday and now the forclosure prevention program. Now, that is change we can believe in!

    August 4, 2009 12:53 pm at 12:53 pm |
  2. gl, From Pittsburgh

    I am one of them that was able to modified my mortgage which was lower to 4 percent from 8.4 percent and now my mortgate payment is – 200 and I did not have to extend my monthly pay.

    August 4, 2009 12:54 pm at 12:54 pm |
  3. demwit

    You mean if I stop paying my mortgage, Obama will give me a new one!!??

    August 4, 2009 12:57 pm at 12:57 pm |
  4. B

    This is an amazing look at the depth of irresponsibility that took place by lenders of mortgages and the idiots that bought them. I can’t understand why the lenders should not be prosecuted for instigating this mess.

    August 4, 2009 12:58 pm at 12:58 pm |
  5. IQ test for all voters

    The repubs DESPERATELY want everyone to just FORGET about the last 8 years so they can rule again with their MOB LOGIC and elect someone like Palin back into office. Thats THEIR plan for the future and a cure to everything thats wrong in America.

    August 4, 2009 01:00 pm at 1:00 pm |
  6. gl, From Pittsburgh

    Everybody that fall behind on their mortgage is not becasue they don't want to pay thier mortage. I couldn't keep up with my mortgage becasue I was on FLMA that didn't pay much which I was off for breast cancer treatments so please stop all the criciziming becasue you don't know every body situations.

    August 4, 2009 01:01 pm at 1:01 pm |
  7. Glennis

    Yes, indeed. Let's help all those folks who bought more house than they could afford because our gimmee society says you should have everything you want and have it right now! And let's help all those folks who were busy flipping properties to become instant millionaires. And no, all those being helped by this are NOT people who lost or are losing their homes through no fault of their own. There are some, perhaps, but I'll bet you that the majority of them are in the undeserving category. Where's the help for people like us, who played by the rules, bought a house we could afford, paid our bills on time and didn't expect the government to give us a boost if we screwed up? Oh, that's right. We're not worth the time and effort. All we're good for is as much money as they can squeeze out of us. And yes, just where IS that Freddie Mac report??

    August 4, 2009 01:04 pm at 1:04 pm |
  8. Fernandez

    What about the people who ar epaying their mortgage on time?
    What do we get?

    August 4, 2009 01:04 pm at 1:04 pm |
  9. Bridgette-PA

    All of you OBAMA haters make me laugh with JOY! I am so happy that you are losing sleep every night and live every waken moment angry about OUR new President. I LOVE IT! I LOVE IT!

    BTW....HAPPY BIRTHDAY BARACK OBAMA!

    August 4, 2009 01:05 pm at 1:05 pm |
  10. Gary

    Where are we getting the money to do all of this?

    August 4, 2009 01:06 pm at 1:06 pm |
  11. stormerF

    Obama just don't get it,Mortgage companies do not want to loan more money or take on bad loans from people who do not pay their bills on time....Why would a bank or Mortgage company redo a loan that has a bad track record to start with?...People who do not pay their bills on time ,have a mind set that its OK to send in their payment late,and do not deserve a house.

    August 4, 2009 01:06 pm at 1:06 pm |
  12. Zero.

    The Obama Bank-Scam...

    August 4, 2009 01:06 pm at 1:06 pm |
  13. Nick

    I applied for this program, and hopefully I'll get some help. I'm a college graduate who has worked since the age of 13. I've been at my current job for 7 years. Recently, my company cut wages by 6 percent. Meanwhile, my condo fees and mortgage went up (no, I don't have an adjustable loan). Now, money is very, very tight. I cut my phone service. I cut my cable service. There are no more corners I can cut. I've been paying into the system for a long time. I don't feel bad about getting a little something back.

    August 4, 2009 01:09 pm at 1:09 pm |
  14. barbara

    One day we will all be living in low income housing subsidized by the government. Just read all the info out there, research it yourself and you will be surprised to learn that money is already being spent on building more of this type of housing. Why are these units being built if not to house poor folks? unemployed folks? The government is very much aware that they will need to house people, feed people and give them money to spend. This is what they will have to do if they wish to remain in power. So what was it that states were told they had to spend stimulus money on? Thats right...food stamps, welfare checks, unemployment checks, family planning, housing etc. Just research it.

    August 4, 2009 01:20 pm at 1:20 pm |
  15. Predicta

    Another wealth re-distribution program. Can't wait to vote these idiots out next year and in 2012.

    August 4, 2009 01:27 pm at 1:27 pm |
  16. Bill

    Bank of America is a Useless Bank.

    All Bank of America Employees are Garbage.

    August 4, 2009 01:31 pm at 1:31 pm |
  17. J

    He is trying the best he can in this troubling time.
    Give the man a chance.
    he's only been in the office 200 days

    August 4, 2009 01:41 pm at 1:41 pm |
  18. Trade Freedom for Security, Lose Both

    Wow! Our Glorious Imperial Federal Government is proving how good they are at running businesses every day. They screwed up simple mortgage refi's, and the Cash for Clunkers has 130 pages of rules that dealers must comply with. You read it right – 130 pages of Federal Government Rules to trade in a car. Can you imagine how many pages of rules our health care system will have to contend with once ObamaCare is enacted? More inefficiency and bureaucracy than any insurance company – oh, and higher taxes for you and your children. Life in Obamatopia – ain't it great!

    August 4, 2009 01:52 pm at 1:52 pm |
  19. Joe, Chicago IL

    Is it true that over 80% of the restructured loans go into defauly within 90 days?

    August 4, 2009 01:54 pm at 1:54 pm |
  20. Heidi Macumber

    That's right, keep the late payers in their mortgages so we can do another round of foreclosures next year. That's what got us into trouble in the first place, people being in debt for more than they can pay, and the government is subsidizing it now?

    August 4, 2009 01:57 pm at 1:57 pm |
  21. Working Class American

    I really sick of "so called" Americans complaining about having to help other Americans! That is NOT the attitude that made this a great country for many years! It IS however the greedy, selfish attitude that has evolved in this country over the last 20 -30 years and it makes me sick!!! This country is only as strong as it's weakest citizen! And until we get back to THOSE

    August 4, 2009 01:59 pm at 1:59 pm |
  22. Glenn Doty, Columbia, SC

    While I would like to see this program work more efficiently, and be extended to help people who have been more responsible (why can't I get my loan re-modified for 2% lower interest... oh, because I've paid my bills?), the people screaming about how this is "socialism" have simply not considered this at all.

    What they are essentially calling for is another 4 million foreclosures within the next few years. The reason that I can't – with my decent credit and flawless payment history – refinance my mortgage is because the value of my house has retreated – due to the number of foreclosed houses in my area... If there were 4 million MORE foreclosures, my problems would be far worse, for far longer. Keeping the marginal performers in their houses is good for everyone – especially since most of them are just renegotiating deals similar to what those of us with better credit signed initially.

    I'd rather pay in a few bucks (and it literally is only a few bucks/year) in additional tax dollars then to let ~20 homes in my subdivision get foreclosed on in the next 3 years... I know which one would hurt me personally a whole lot more.

    Think people... Think.

    August 4, 2009 02:08 pm at 2:08 pm |
  23. Enlightened Voter

    Hey republicans, betcha regret voting for bush huh? He sure left this country in a mess.

    August 4, 2009 02:19 pm at 2:19 pm |
  24. Guest

    I think the government should help homeowners who fell behind because of job layoffs, furloughs, etc. Those situations are beyond their control.

    Also, some homeowners were victims of scam artists. We fell into that category briefly too. About two years ago, my husband and I refinanced. It was our first time ever doing so. I thought we understood all the terms of the loan. A situation arose where we needed to refinance again. The new loan officer informed us that we had previously signed up for one of the "questionable loans". After a few years, our payment would have increases significantly.

    How did that happen? Buried in fine print was the answer. We wouldn't have known had the new loan officer not pointed it out to us.
    The person who processed our loan didn't explain that to us either.
    We've since fixed the problem.

    Our mortgage is on time and we have good credit. However, we don't understand legalese language. My directive to the previous loan company was we want a fixed rate as we did before. She said no problem. The paperwork was doctored to read fixed rate everywhere except the fine print. The fine print noted we had a fixed rate for three years and then the payments would increase.

    August 4, 2009 02:20 pm at 2:20 pm |
  25. awaitingliberalizationbyCNN

    Another very successful obamatron program. Another robbery committed by the Chicago thugocracy. Did you see that 20% of the 9% are still failing to pay after modification. This is definitely the group we do not want in charge of life and death situations. Who voted for Obama anyway, fools, drug addicts and Oprah watchers.

    August 4, 2009 02:54 pm at 2:54 pm |
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