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. jim

    Another sucessful program created by Obama to help average people just doesn't seem to be doing what he advertized-oops another fly in the ointment !!!

    August 20, 2010 12:25 pm at 12:25 pm |
  2. Take America Back: from Texas

    Well let's see here now......a bunch of folks who couldn't afford the house they bought (and they were only able to get due to Liberal Dem mandates to mortgage companies).......when they couldn't pay their mortgage, they proceeded to "hose" the mortgage company and cry to Obambi for a bailout......they got a temporary fix, (but the truth is they wanted their mortgages forgiven) and simply let that expire and now they "fall out"!
    Now why doesn't that surprise me????
    Entitlements are what is destroying this nation.....it destroys the work ethic, causes people to expect MORE & MORE for NOTHING!
    So how is that "hope and change" working for "you"?

    I'm just saying.......

    August 20, 2010 12:34 pm at 12:34 pm |
  3. Dutch/Bad Newz, VA

    Thank you Wall St. for this subprime mortgage crisis. And these are the people you want investing your Social Security?

    August 20, 2010 12:38 pm at 12:38 pm |
  4. Sniffit

    "So how is that "hope and change" working for "you"?"

    At this point, I'm pretty sure there is a large segment of the population who would be happy if the only change to occur was for imbecile GOPer talking-point regurgitators who can't think for themselves, do no research to inform themselves, have all the facts and evidence mixed up because they simply believe what they're told, etc., would just shoosh themselves until they are (a) informed and (b) have something new to say instead of parroting the same spiteful, baseless crap over and over and over again.

    August 20, 2010 12:39 pm at 12:39 pm |
  5. NJ Finest 2009

    I have a friend who has been trying to Get Loan Modification since January 2010- with Bank of America Every week she calls and she gets passed around to this desk, that desk. No one seems to have her paper work, then someone has it! She filled out all the appropriate paper work, fed ex'd it in what is the problem? Meanwhile after almost one hour on the phone they just tell her that her paperwork is still in review. The answer is they had no intention of helping her from the beginning. The bank is the problem... Bank of America how many loan modifications have they done, My friend is suffering and no one will help her. She is a hard working single mom with two kids, just being tossed around and the bank employees probably laugh at her every week when she calls!

    August 20, 2010 12:41 pm at 12:41 pm |
  6. aunt Bea and Opie

    Republican house flippers wont know what to do with all those houses they bought,hahaha

    August 20, 2010 12:42 pm at 12:42 pm |
  7. aproudmemberoftheunpatrioticmob

    Another waste of our hard earned tax dollars by the Obozo folks. Wonder how many government employees (at all levels) it took to do this disaster.

    August 20, 2010 12:45 pm at 12:45 pm |
  8. T'SAH from Virginia

    It's not the program – it's the BANKS!!! My mortgage was in jeopardy – (and I WAS NOT one of those "..bunch of folks who couldn't afford the house they bought..." people). I tried to qualify for a mortgage reduction program and the BANK gave me the runarounds (WELLS FARGO) over and over again for months. I ended up 'struggling' and recovered/saved my home on my own.

    SO – even though the program is available, the BANKS want to HOG their money, pay their CEOs and others MILLIONS and MILLIONS dollars in bonuses and could CARE LESS for the homeowners or the ECONOMY!!!

    August 20, 2010 12:46 pm at 12:46 pm |
  9. terry,va

    Give a man fish for the day and that is all he has. Teach him how to fish and he can feed himself in the days to come. All the dumbocraps know is to keep throwing good money after bad to people that have no intention of fending for themselves. Enough with the give a ways!!! My back is sore from carrying people.

    August 20, 2010 12:51 pm at 12:51 pm |
  10. Sniffit

    "And these are the people you want investing your Social Security?"

    Indeed. That is the entire point. There are billions and billions of dollars tied up in Social Security that giant corporations and financial institutions view as their money because they had to pay it as part of peoples' salaries. They want it back. All they have to do is gamble it all into the ether like they did with the subprime mortgages in order to buck the laws requiring them to lend fairly to lower income people. And hey, they got rich of going bankrupt that way, so just imagine how much money they could make by "disappearing" all that Social Security money.

    August 20, 2010 12:52 pm at 12:52 pm |
  11. Brad

    I bought a house this year. It is small, has a small yard, isn't fancy at all, needs a few repairs but over all a very good house. It cost me 70k, my monthly payments are 514 a month. Even if I lost my job, I could pay that morgage mowing lawns or flipping burgers. I could have gotten much bigger, but I didn't. That is called smart, and not being greedy. When I lived in Dallas, I couldn't afford a home, so I got an apartment. Yep, it's that simple folks, do what you can, and that is it.

    August 20, 2010 12:52 pm at 12:52 pm |
  12. Brad

    To T'sah from viginia, who signed that contract in the first place? Why should the bank HAVE to change a contract you sighned and agreed to? People like you make me sick, can't take responsibility for anything you do, still blaming others. Shut up!

    August 20, 2010 12:54 pm at 12:54 pm |
  13. Dean

    Hang on everyone. That moronic tool in the White House will be facing foreclosure in 2012.

    August 20, 2010 12:57 pm at 12:57 pm |
  14. hankster6

    The Muslims are well known to be after world domination. The radicals, of course, make all Muslims look bad to some extent. Most realize that all Muslims are not bad, but we also know that the Koran and our constiution can not live togeather in the same country.
    The Muslims leaders will do whatever it takes to accomplish their goals. Muslims are not a tolerant religiion. Most other religions preach tolerance. Some leaders of Muslims also preach tolerance when the Koran teaches just the opposite!
    So, although, they have the freedom to practice their beliefs in this country, does not mean that they have the right to force their laws on us nor do they have the right to force us to believe what they believe. Of course, the only way they can force that is through our children via indoctrination, which is also started in many schools, without parents permission. If one member of any school board is Muslim, they will try to force their beliefs on everyone and in most cases, will get away with it, because no one will stand up to them and they know that!!!
    Our government is on the same track, since our president is very pro Muslim and is 1/2 Muslim and 1/2 Christian, or it seems, he will bow to their desires and one day, with an executive order, impose Muslim law on America. That will be an impeachable offense, like so many other offenses, he has taken, but our AG will bring no charges, ever, on his boss. They protect each other and will!!

    August 20, 2010 12:58 pm at 12:58 pm |
  15. Chuckie

    Obama-Worst President Ever!

    August 20, 2010 01:00 pm at 1:00 pm |
  16. Tom-Vermillion Ohio

    When income is lost or reduced, the bills still keep rolling in. What once was affordable, no longer is. The only cure is steady, reasonable income. Years ago, a person graduated from high school or college, and could pretty much count on staying at that place of employment until the time comes for retirement. Now that is the exception rather than the rule. Since the economic meltdown, everything done was just a band-aid to postpone the inevitable. This statement is a statement of fact and it is one we have to contend with in coming up with solutions to this very serious problem of personal income. Might I add that I see no 'politics' whatsoever in solving this problem and that in itself is a big part of the solution that is so desperately needed. Capitalism? Socialism? Marxism? The answer is none of those. The new economic term is Americanism, when the Republicans are finished with their current on going diatribe, I'll show you how to do it with everyone coming out a winner. With the right kind of Congress and Executive Branch chemistry, we can fix it within 2 years AND get rid of that national debt and deficit. By the way, CNN has within its vast archives all the necessary information and 'talent' to fix the problems at hand. All we have to do is sort it out and put it together. Time to sharpen those pencils.

    August 20, 2010 01:04 pm at 1:04 pm |
  17. terry,va

    Dutch/Bad Newz,Va....the sub prime mortgage was created by Barnie Frank's governance of Freddie and Fannie Mac. We the tax payers have given them 150 billion dollars and now Frank said maybe we should get rid of them. What's up with the social security comment. Who wants to do that? No one wants to totally privatize social security; not even Bush.

    Sniffit...if the only thing you have is name calling and GOP'ers are dumb, you don't have anything. I'll put my IQ and work ethic up against anyone. From welfare to a millionaire. Didn't get there by blaming others or condemning them for their point of view.

    T'shaw... It's not the banks. People take out loans with the promise to repay. If you can't afford to repay, then don't take the loan. When you don't pay something you owe, you are stealing. No excuses please!!!

    My point is quit crying and blaming others. Get down and get it your self or shut up.

    August 20, 2010 01:08 pm at 1:08 pm |
  18. Debra

    @Take America Back – How imbecilic of you to paint with such a broad brush the real problems of everyday Americans fighting to keep their homes. Yes, there are those who should not have bought what they couldn't afford, however there are millions of us just trying to refinance our loans to help with reduced income, higher health care costs, much higher college costs, and an insurance industry also out of control. "Hose the mortgage company"? Ridiculous. What rock did you crawl out from under? It's the mortgage companies hosing the homeowners. I have paid my mortgage on time every month for 17 years and Wells Fargo gave me the same runaround. They had no intention of refinancing my loan. It's not Obama. He's cleaning up the mess from 8 years of hopeless Bush policies and Wall Street and Bank greed. Wake up and see what real hardworking Americans are dealing with. Your comments show your ignorance of Real American problems.

    August 20, 2010 01:09 pm at 1:09 pm |
  19. Eric

    What?

    You mean congressionally mandating that banks lend to people to buy homes they could never actually afford, and then doubling down on stupid by launching a government program to KEEP them the homes they couldn't afford... ya mean, that's not a smart financial idea?

    Whodathunk?

    THIS is reason 592 why this bunch is going to be tossed out on their @$$3$ this November. Enjoy your 40 years in the political wilderness, National Socialist Democrats.

    August 20, 2010 01:19 pm at 1:19 pm |
  20. Claudia, Houston, Tx

    The money is there but the banks and mortgage companies won't release funding. Please print the truth.

    August 20, 2010 01:23 pm at 1:23 pm |
  21. Marcus

    jim – 434,717 failures? I repeat, 434,717 sucessful cases are, in your book, 434,717 failures?

    aproudmemberoftheunpatrioticmob – Help nearly half a million families (so far) of Americans citizens in US SOIL is hardly a waste of money. Could it be better? Of course it could, so the question is, WHY it is not as better as it could be?

    August 20, 2010 01:23 pm at 1:23 pm |
  22. Eric

    Dutch said, "Thank you Wall St. for this subprime mortgage crisis. And these are the people you want investing your Social Security?"

    Um, do you think banks and lenders would EVER lend to people whom they KNEW couldn't pay it back? I mean, do you think they'd ever do that if they weren't forced to do it by the congress?

    Do you think banks are the business to LOSE money? And not just lose, but KNOWINGLY enter into mortgages with lenders KNOWING they'll never pay it back? ...again, unless they were forced to.

    Do you thing bankers LIKE to lose money?

    So why and how did this ever happen?
    Look no further than your democrat congressional representation.

    Bankers don't lend to people who can't pay it back with interest... unless they have a legislative gun held to their collective heads.

    You can thank the 1977 Community Reinvestment Act for starting this whole taxpayer-funded, democrat-vote-buying "fair housing" scam. You can further thank Wild Bill Clinton for adding teeth to the measure in 1995-1996.

    Putting deadbeats in houses they can't afford, collapsing the entire global market, and then using taxpayer dollars to paper over the whole mess... yeah, how's that f***ing hope and change working out of ya?

    August 20, 2010 01:26 pm at 1:26 pm |
  23. Alex

    Another example of how banks play by their own rules. The ONLY reason this program is not working the way its intended to is because the banks are playing games with tax payers money. This is exactly why we need MORE REGULATION of the banks. The point is proven over and over again.

    MORE REGULATION ON BANKS and WALL STREET!!!!

    August 20, 2010 01:31 pm at 1:31 pm |
  24. gt

    another good idea that cant get done.... pathedic,,

    August 20, 2010 01:35 pm at 1:35 pm |
  25. Tim

    Sorry, this was supposed to be in the multi-millions. It's not loosing it's punch, it punches like a liberal democrat.

    August 20, 2010 01:38 pm at 1:38 pm |
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