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.
9% huh? I thought this plan would help all homeowners in trouble. 9%. More government efficiency. I can't wait for them to control my healthcare.
Folks complaining about this being a handout aren't too bright. Well, sure it's a handout, but a win win for everyone. Foreclosed houses on your block brings down the price of your house. Besides, isn't this the govt giving money back to tax payers?
However, I still think the best and easiest thing that could've been done is to use all that TARP money to pay off the loans. People keep their homes, banks remain in the black (well as much as they were before) and everyone's happy.
If they can't afford to pay their morgage now, they will lose their homes eventually anyway. It's just an Obama ploy.
I really never thought I would agree with a TCM post
I'd like to see these kinds of modifications available to people who are NOT months behind on their payments. There are many of us that are struggling to pay their bills. Why is it necessary to wait until after the roof caves in?
For those who are complaining about hand outs...you should thank God you still have a job and can pay your mortgage. Don't assume the folks that are behind are those who couldn't afford it. Many of us lost our job and couldn't pay our mortgage. Thanks to our President and his Administration that I was able to take advantage of this program, I am back at work and mortgage is current. Without this program I would have lost my house while unemployed.
The program is working!