Mortgage Modification Program Slows to a Crawl
WASHINGTON -- Fewer homeowners entered preliminary mortgage modifications under the Obama administration's signature foreclosure prevention initiative in June than in any month since April 2009, according to government data released Friday.
June saw just 15,000 new trial modifications under the initiative, which the administration confirmed was the smallest number of any month almost since the program launched. (The administration said some June modifications may not have been reported yet. More than 30,000 trial modifications were converted to permanent ones in June.)
Since the Home Affordable Modification Program launched in the months following President Obama's inauguration, nearly 870,000 struggling homeowners have been kicked out of the initiative, while just 657,044 remain in permanent modifications.
For eligible borrowers, HAMP lowers monthly payments to 31 percent of their monthly income by reducing interest rates, extending the term of a loan and temporarily forbearing payments. If a borrower successfully makes reduced trial payments for three months, the modification is supposed to become permanent -- but in its early history the program has been notorious for its drawn-out and often hopeless trial mods.
Read the full story at The Huffington Post.
See more articles related to the Home Affordable Mortgage Program.
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- How Much Home Can I Afford?
- How to Buy Foreclosures
- Foreclosure Help: What a Housing Counselor Can Do