Foreclosure: Feds' Prevention Plan Lags

Before you go, we thought you'd like these...
Before you go close icon
Foreclosure preventions were a leading priority when the Obama administration committed $50 billion in aid to troubled homeowners at the start of 2009. But as of October, the Treasury Department had spent only $600 million on the government's mortgage modification program, a mere drop in the bucket when compared to the proposed total.

The program uses TARP money to offer incentives to mortgage servicers to make loan modifications. The reasons for the failure to pay out more funds include that the program only pays out funds for completed modifications, not trials; and that homeowners receive loan reductions over a period of years, so many mods haven't been paid out in full yet.

For more on related topics see these AOL Real Estate guides.

More on AOL Real Estate:
Find out how to
calculate mortgage payments.
homes for sale in your area.
foreclosures in your area.
property tax help from our experts.
Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

Find a New Home

Powered by Zillow

From Our Partners