President Obama's foreclosure prevention plan has helped nearly 228,000 delinquent borrowers keep their homes, the administration said Wednesday. That's up from a month ago, when roughly 168,000 people received long-term mortgage modifications.
Another 781,000 troubled homeowners were in trial modifications, through March, officials said. Of these, 108,000 have been approved for permanent modification by servicers and are awaiting borrowers' acceptance. So far, some 19.8% of trial modifications have become permanent, up from 15.5% a month ago.
Overall, some 6.7% of the estimated 3.4 million eligible borrowers have received long-term help.
While the number of people receiving permanent modifications is steadily growing, industry experts say the relentless foreclosure tide continues to threaten the program's effectiveness. The administration has ramped up pressure on loan servicers to convert more trial modifications to long-term aid. But, some 13.5% of trial and permanent adjustments have been canceled, most often because borrowers did not make timely payments or return the necessary paperwork.
Wednesday's update comes on the heels of a government watchdog report that said the president's plan will fall short of its goal to help up to 4 million people avoid foreclosure. Nearly 200,000 foreclosure proceedings are started each month, according to the Congressional Oversight Panel.
The following comment is probably the most clarifying of the present market situation: "For every borrower who avoided foreclosure through HAMP last year, another 10 families lost their homes," the panel said of the administration's Home Affordable Modification Program. "It now seems clear that Treasury's programs, even when they are fully operational, will not reach the overwhelming majority of homeowners in trouble."
Dave Rosenmarkle
Broker/Owner
Highland Realty
Arlington, VA 22207
703-538-2566
davidrose@mris.com
www.HighlandAgents.com
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