August 20th, 2010
12:12 PM ET
4 years ago

Foreclosure prevention program losing its punch

ALT TEXT

Only 36,695 troubled homeowners received long-term mortgage modifications in July under the Obama administration's Home Affordable Modification Program. (Photo Credit: Getty Images/File)

New York (CNNMoney.com) - The president's signature foreclosure rescue plan is losing its punch, according to a federal report released Friday.

Only 36,695 troubled homeowners received long-term mortgage modifications in July under the Obama administration's Home Affordable Modification Program, known as HAMP. This brings the total to 434,717 borrowers who have successfully made it out of the trial phase.

A month ago, 51,205 delinquent borrowers were given long-term assistance.

The number of people falling out of the program, however, is on the rise. Some 12,912 homeowners had their permanent modifications canceled in July, 272 of whom paid off their loans.

Full story on CNNMoney.com


Filed under: issues • Obama administration
soundoff (43 Responses)
  1. Tim

    Thank you Chris Dodd and Barney Frank for the subprime morgage crisis. And these are the people you want running your life?

    August 20, 2010 01:40 pm at 1:40 pm |
  2. water bearer

    There are an awful lot of people who post on here every day who seem quite content to blame the President for everything from the economy to the fact that it's raining at their house. Seriously folks .. ..you aren't taken seriously when you are so consistent in your hatred. Try, just once, to look at the bigger picture. Nothing happens in a vacuum. The country didn't start down this path of economic failure the day President Obama took office! There are many, many reasons for it spanning decades of bad management by our elected officials . . . . from both parties! Can't you, just once, acknowledge the fact that the current President was handed a country in deep crisis and that he is working to turn things around but that it is going to take more than the two short years he's been in office? Can't you, just once, acknowledge the fact that turning it around is going to take the cooperation of both parties in Congress and that one party isn't acting in good faith? Can't you, just once, acknowledge the fact that the Repubs have done nothing except obstruct legislation which could, and in many instances would, help turn things around simply because they believe if the status quo is maintained some voters (you all) will be so pissed off that your knee-jerk reaction will be to vote them back in again? All of the disparaging names and insults you spew at and about the President don't show you to be patriotic or smart. All it does is make you sound childish and bigoted.

    August 20, 2010 01:42 pm at 1:42 pm |
  3. Cedric Winston

    Well I have to say that I was one of the fortunate ones who could afford the house I bought i simply hit a rough time and citi mortgage modified my loan to get me out of foreclosure. I am very happy of the presidents initiative and wish many more people well in thier pursuit. Can't blame the prez for this. When you are dealing with any type of loan that isn't govt't backed then the banks don't wanna remodify the loans because your credit is not up to part anymore and they don't want to waste the time to modify the loan and run the risk of another default on the borrowers behalf so they would rather kick you out let it sit there and go after the borrower in court in hopes of getting a garnishment.

    August 20, 2010 01:42 pm at 1:42 pm |
  4. Alex

    @NJ Finest 2009

    My grandma had the exact same problem. She was told over and over again they were still processing her papework. A month would go by, and then they would tell her since her paperwork was over 30 days old, she had to resubmit. This went on for months. Finally, my mom, a CPA, called her local DEMOCRATIC representative to let them know what was going on. A couple of weeks later, the bank modified my Grandma's home.

    @Take America Back: from Texas

    Clearly, you have no clue how this whole situation came about. You say, "a bunch of folks who couldn't affor the houses they bought."

    Well, the banks were saying, "sure you can afford it, in fact, here's the money! Don't worry, we'll make it work. Trust us. We're banks!"

    You pinhead....

    August 20, 2010 01:43 pm at 1:43 pm |
  5. JJ

    I was diagnosed with ALS in May 5th of this year. I have been trying to get a modification with Citimortgage since the end of May. I was terminated from my job as Researcher with a small company because I cannot walk any more and was denied unemployment payments. The Modification process with the large coporation is a joke and a sham. I have Fed Ex'ed documents 4-5 times and faxed in the same documents on 6 occasions. I get the run around about the documents missing a page. It is so frustrating that I have cried on occasions trying to get a straight answer on my status. They really don't want to help me. They pretend that they are there to help you but the reality is they wish I would just disappear of fix my own problem. I wish I could work again.

    August 20, 2010 02:00 pm at 2:00 pm |
  6. diridi

    Banks are playing biggest Drama...that's it...Govt, needs to get these banks....

    August 20, 2010 02:01 pm at 2:01 pm |
  7. The Other Micheal in Houston

    Wow "Take America Back: from Texas" first I ashamed that you and I live in the same state. Being a Texan means being a independent thinker, not regurgitating Glenn Beck. So you think that everyone who brought a house, who are now in foreclosure, could not afford their home. What about all those people who worked for Enron who lost their jobs because of an unregulated system that Republicans wanted and in turn could not make their mortgage payments due to a sudden loss of income. Or, those soldiers, Airmen, Marines, Sailors who were reservist and were called back to active duty only for their normal income to be reduced to a fourth of what they were making, I guess they could not afford their homes either. And one last question, America did not go anywhere so what are you taking back, idiot. I think you should change your name to "Make the White House, White again: from Texas", that is your real problem.

    August 20, 2010 02:03 pm at 2:03 pm |
  8. tamara

    As one of those homeowners who received their permanent loan modification through Obama's program, I can tell you from personal experience that it's the BANKS that are the problem, NOT the program.

    Wells Fargo dragged their feet for over a year, giving me the run around for months. Every document that was requested was sent, WF would acknowledge receiving it, then LOSE it!!! With enough preserverse, it finally got through.

    And no, I'm not a deadbeat. The company I work for imposed a steep cut in pay for all employees. (all the while reporting RECORD profits for the year!!)

    KNOW THE FACTS before you make judgement.

    August 20, 2010 02:11 pm at 2:11 pm |
  9. Tom-Vermillion Ohio

    @Take America Back: from Texas, how about a bunch of folks who at one time could afford the house who lost their income through no fault of their own? And by the way, what ever it is you do for a living, I think the pay you earn is way too much. In my opinion, serious consideration should be given toward tripling your taxes in an effort to reduce the national debt. Additionally, your health care insurance should be dropped immediately because you strike me as an insurance cheat. And then you speak of work ethics, well all I have to say on that is you have none.

    And oh yeah
    I'm just saying.......

    August 20, 2010 02:11 pm at 2:11 pm |
  10. AJ

    You mean it had punch?

    August 20, 2010 02:11 pm at 2:11 pm |
  11. Allen Hussein

    This program needs to be either re-tooled or scrapped. It obviously isn't doing what it was intended to.

    August 20, 2010 02:16 pm at 2:16 pm |
  12. JJ

    I want to add this, my modication need has nothing to do with entitlements. This ALS illness came quickly and has hit me so fast my head has not stopped spinning. I was sucessful and was making good money. Then every man nightmare started in little over a 4 month period where my mobility went from tired legs to cane, then a wheelchair.

    August 20, 2010 02:16 pm at 2:16 pm |
  13. Ricky Bobby

    You mean Obama is not going to help me with my mortgage on my mobile home. They knew I couldn't make them payments when I bought it but hey as a Democrat I thought they were goin to pay it.

    August 20, 2010 02:22 pm at 2:22 pm |
  14. vic

    Another evidence how big was recession republicans covering the damage it was big

    August 20, 2010 02:25 pm at 2:25 pm |
  15. Fed Up

    Well, let's see. #1, the banks won't part with their simulus funds. #2, most of the folks are out of a job (but that can't be possible, because the economy is running just fine according to Obama and his cronies), #3, the rest are folks that couldn't afford the house to begin with. That was caused by the Dems during the Clinton administration, because they decided that "everyone" should have a house – even those that couldn't afford it, had bad credit, and/or didn't have adequate income to make any payments, let alone pay the rent. Then we had the real estate agents that decided they could falsify income to get people into a $500,000 home, when they had an income of $35,000 per year. Plus, there was no verification when the mortgages were applied for. What happened to "You must have the income in order to get the loan?" Let's get some more jokers in Washington, DC.

    August 20, 2010 02:26 pm at 2:26 pm |
  16. Bill

    Another successful stimulus attempt. Whom will you blame now?

    August 20, 2010 02:31 pm at 2:31 pm |
  17. Get A Grip

    Oblamer will just blame it on Bush

    August 20, 2010 02:45 pm at 2:45 pm |
  18. GOP Scorched Earth Politics

    Fine. Let the bubble finish bursting. Real Estate and Residential Lending are the most crooked industries in our history. Mortgage lenders on cocaine and bait and switch terms, speculator vultures flipping house with no intention of investing in the communities. I'm glad to see the collapse and the house of cards was built on sand. Homes should be built for people that need them...not for vulture speculators or sheister mortgage lenders.

    August 20, 2010 02:48 pm at 2:48 pm |
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