December 10th, 2009
06:25 PM ET
8 months ago

Treasury: Only about 4% get long-term mortgage help

NEW YORK (CNNMoney.com) - Only about 4% of troubled borrowers have received long-term help under the Obama administration's foreclosure prevention program, Treasury officials said Thursday.

A nearly equal number of trial modifications have been denied permanent assistance, the report showed. The reasons include not making monthly payments on time, not submitting all the necessary paperwork and not qualifying for reasons such as insufficient income.

The report, the first comprehensive tally of permanent modifications made, shows that loan servicers have converted 31,382 people from trial adjustments to long-term assistance as of Nov. 30.

But 30,650 people in trial modifications have been denied, according to Treasury officials.

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Filed under: Treasury Department
soundoff (9 Responses)
  1. Mike, formerly from Syracuse

    Anyone know what a score of 4% means on a test? Anyone? Anyone? Buehler? It's an F. A big fat failure, as has been the stimulus.

    December 10, 2009 07:23 pm at 7:23 pm |
  2. New Age Independent

    Yet another failed policy of this administration that has cost us more money than it was worth. Did anyone really think that this was really going to help many people? The thought may have been well meant, but once again the execution was a disaster.

    December 10, 2009 07:46 pm at 7:46 pm |
  3. Dianne

    Are these the homeowners who purchased more house than they could afford in the first place? I think there are different finiancial situations that need to be separated instead of lumping everyone together. I am sure there is a number who are not qualified at all no matter the loan system used.

    December 10, 2009 08:03 pm at 8:03 pm |
  4. No More Incumbents

    Thank God it's not healthcare.

    December 10, 2009 08:10 pm at 8:10 pm |
  5. Itchy

    Oh...and some of refused to refinance because the companies hired or set up to "help" wanted $10,000 in closing costs to do new loans....no freaking thank you! I'm not losing every bit of equity in my home to save $100 a month in payment..........DO I HAVE STUPID WRITTEN ON MY FACE!!!!

    December 10, 2009 08:32 pm at 8:32 pm |
  6. Steve Lyons

    How about we cancel spending the rest since the help isn't being distributed. GOD knows I've tried to help my clients but Washington isn't forthcoming with the forms and contact persons for getting the lender subsidies. Better still why not send my borrowers about $100,000 so they can simply pay off their loan to me and keep their home free and clear? Then we'd have two happy families.

    December 10, 2009 09:33 pm at 9:33 pm |
  7. JK Ashburn, VA

    My tax dollars at work - supporting people who made stupid mistakes while I was paying off my mortgage, with my own money. Makes ya kinda proud to be an American, doesn't it.

    December 10, 2009 10:30 pm at 10:30 pm |
  8. C. Farrell, Houston, Tx

    Mortgage companies are only trying to help themselves and the rich, work for one and you will be quickly fired for asking questions.

    December 10, 2009 10:43 pm at 10:43 pm |
  9. John an Independent from NY

    Good no more wasted money. Failure is a good thing for campanies and people that make bad business decisions. Don't screw the rest of us living modestly.

    December 10, 2009 11:14 pm at 11:14 pm |