June 21st, 2010
01:02 PM ET
11 years ago

Mortgage modification plan helps few borrowers

New York (CNNMoney.com) - More troubled homeowners have fallen out of trial mortgage modifications than have received long-term help, a new government report shows.

But nearly half of these borrowers received alternate help, while only 7% have fallen into foreclosure.

The administration's signature housing-rescue plan, Home Affordable Modification Program, saw a surge of people leave the initiative in May. More than 152,000 have had their trial adjustments cancelled since the program started, mainly because they could not document their income or because they earned too much to qualify for assistance, officials said.

Nearly 430,000 borrowers have had their trials cancelled - more than one-third of the total started. Servicers place troubled borrowers in trial modifications for several months to verify their income and see whether they can make the lowered payments.

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Filed under: Obama administration
soundoff (17 Responses)
  1. MatthewDetroit

    Barack did not get anything done the 1st time around.
    The money failed to help anyone.

    What You NEED to do Barack is change the lending rules and DO NOT let people that cant afford a house buy a house.

    Next let the mortgages fail where they will. The industry will correct itself.

    Finally Get rid of BARNEY FRANK and CHRIS DODD who created the entire mortgage problem, let it happen, and got paid off.

    June 21, 2010 01:10 pm at 1:10 pm |
  2. modification dupe

    The services place you in these trial mods for months, deny you and then want you to pay all the back money owed (it continues to increase during the trial) or they then place you in foreclosure... This does not help!!1

    June 21, 2010 01:11 pm at 1:11 pm |
  3. Angus McDugan

    That's right, but it sounds oh-so-good when campaigning next go round.

    June 21, 2010 01:11 pm at 1:11 pm |
  4. Eric

    What a concept... people who can't afford homes, can't afford homes.

    Next, you're going to tell me water is wet.

    June 21, 2010 01:16 pm at 1:16 pm |
  5. Henry Miller, Libertarian

    Your government in action, creating yet another bureaucratic mess that does few people any good and costs insane amounts of money.

    June 21, 2010 01:20 pm at 1:20 pm |
  6. Enough

    Typical failed government program.........they are clueless.

    June 21, 2010 01:21 pm at 1:21 pm |
  7. Claudia, Houston, Tx

    You can't save a house that's already burned down and it's unfortunate for those who faced forclosure but someone has to show responsible lending or we repeat the same crisis.

    June 21, 2010 01:22 pm at 1:22 pm |
  8. Dixie

    One needs an attorney to wade through paperwork generated by the banks - who move at a snails pace. Pres. Obama, I don't think this screwy process was what you intended.

    June 21, 2010 01:24 pm at 1:24 pm |
  9. gt

    this was not going to work ... its sad that all those folks were given false hope...

    June 21, 2010 01:25 pm at 1:25 pm |
  10. phoenix86

    Another failed government program. Get ready for Obamacare.

    June 21, 2010 01:45 pm at 1:45 pm |
  11. Slick William

    Lynda/Minnesota June 21st, 2010 10:37 am ET

    That is NO quick fix was obvious from the beginning. For whatever reason big oil companies evidently assumed a catastrophe of this nature would never happen.

    It has.

    Rather easy to blame Obama. Keeps the focus of the public directed away from the need for regulatory control.

    Gee Linda, I thought that is exactly what has failed, government regulation and the oversight of offshore drilling... Ever think that the people that are ticked off are not espousing deregulation but are in fact mad at having ineffective layering of regulatory bureaucracy by lawyers that do nothing to enforce existing regulation and simply legislate for more. I don't think you would find one American citizen that would not agree that every industry needs effective common sense regulatory control, the problem is the government continually fails to provide it and the people driving the bus are incapable of understanding anything about how our Nation and Society function beyond what some law book taught them at some liberal zoo. Make no mistake, this is an apocalyptic environmental disaster that will evidence itself in our Nation for the next 20 years minimum!

    June 21, 2010 01:52 pm at 1:52 pm |
  12. Paul from Phoenix

    This plan is an incredible failure. It was supposed to help millions of homeowners, and it barely helped anyone, and now those getting help are SOL.

    great program. When home prices are 30-40% below the market value upon purchase, which is where many of those in need of help find themselves, then they are not going to be eligible for help.

    But nobody took that fact into account when creating this program. There are many people who did it right, like myself. I would love to lock in my interest rate today, but it can't happen because my place is worth 80k less. So, i don't get to take advantage of today's rates.

    June 21, 2010 02:06 pm at 2:06 pm |
  13. thor

    Shows what a complete failure this administration's plan has been in dealing with the housing crisis .They have helped big banks and auto companies but ordinary average Americans are left to look out for themselves.Up until the election of this president ever other was defined by how the employment rate was. Now this one wants it to be defined by a new standard .Jobs saved or created.Numbers that aren't easy to confirm or deny and only cloud the picture as to what the true story is.A lot of people have simply given up because things are so bad.In the meantime the fat cats on wall street are making tons of money and are closing their eyes to the future of whats coming down the road when the deficits will have to be dealt with one way or another.

    June 21, 2010 02:07 pm at 2:07 pm |
  14. Tim

    As does everything else he has tried.

    June 21, 2010 02:11 pm at 2:11 pm |
  15. Anonymous

    Maybe that's because many of these poeple should have never beeen given loans in the first place.
    Have we learned nothig form the past few years? If you can't prive income you are either doing something illegal or not filing tax returns. Either way- no home loan.
    This hold true for every aspect of complaints from poeple out there that don't conform. Right now the fisheremn of Lousiana are complaining baout not getting paid by BP becuase they cannot provide tax returns to show previous earning. The reason they can't is thye do not file returns. They choose to stay off the government rolls and NEVER pay their share of taxes.
    These same people complain when they don't get support from the feds or handouts from BP.
    You cannot have it both ways- you're either in or you're out. All of these people are out.

    June 21, 2010 02:20 pm at 2:20 pm |
  16. seebofubar

    Facte it, home ownership is a privilage and not a right! Too many people were given mortgages that they couldn't afford, but don't blame the banks, it was at the direction of the Clinton administration that the banks loostened up on the loan requirements. Liberals believe that home ownership is a right, and if someone can't afford a home, then let's " take from the rich and give to the poor until there aint no rich no more".

    June 21, 2010 02:38 pm at 2:38 pm |
  17. Lynda/Minnesota

    I would like to thank not only the Bush Administration, but the entire Congressional GOP as well, for staying on top of our economy during their 8 year reign.

    If it hadn't been for their diligence, we might not be in the position we are today.

    Having said that, only a fool would continue to support this party of idiots. Having crashed our economy, the GOP sat back and did nothing to help alleviate the pain they caused millions of Americans to suffer through, and yet, these same individuals now have the audacity to continue to seek our support in their efforts to put the same failed policies that brought us where we are today back into play.

    Rather reminds me of Hoover, and those who supported him . . . right into the worst depression this country ever faced.

    I don't know about the rest of you, but I am absolutely sure I don't want to see a repeat.

    June 21, 2010 02:55 pm at 2:55 pm |