Program to modify mortgage falters; federal plan helps only a few avoid foreclosure

[Newsjock]

Source: Fresno Bee

The Obama administration's much-touted plan to save homes by modifying mortgages is not living up to expectations -- and those on the front lines of the effort are getting frustrated.

Nationwide, only about 4% of applicants under the government's foreclosure-prevention program have been able to get permanent help, according to a recent U.S. Treasury report.

... "We are an institution trying to provide hope and relief, and we are becoming skeptical," said Randall Guerra, executive director of the nonprofit Community Housing Council of Fresno. "It is not even close to working out like it was supposed to."

... Critics also point to a high default rate of modified loans under the banks' programs -- by some estimates up to 40% after six months -- and note that many people simply opt to walk away from their houses. Default rates on HAMP loans have not yet been released.

... The stakes are huge, especially in the Valley. Nationally, 8 million to 10 million foreclosures are projected over the next five years -- and Merced, Stockton and Modesto have the highest foreclosure rates in the country. Bakersfield and Fresno are sixth and 12th, respectively.

Read more: http://www.fresnobee.com/170/story/1755359.html

[geckosfeet]

1. Alternate headline: Lenders/banks Successfully Repel Attempts at Regulation.

[griffi94]

2. here's the money quote

"It is not even close to working out like it was supposed to."

this is why the hcr bill needs to die.

[xchrom]

3. Recommend

[Royal Sloan 09]

4. k&r eom