Homeowners Try to Hang On as Foreclosure Prevention Programs Move Slowly

October 3rd, 2009 | admin | Real Estate

The Obama administration claimed that it is going to lend help to as much as 4 million homeowners to be able to make modifications to their loans. According to the Treasury Department, over 200,000 of these loan modifications are offered to date. This will just signify that millions of people are still hanging around for their turn. This might also signify further foreclosure news reported if these trouble homeowners failed to keep in touch with the company on time.

Deborah Sherman is one of those homeowners who are waiting for their turn on the loan modification. A day on March 4 before it was proclaimed, she applied for the said government program.

Since then, all she heard from Chase, her loan servicer, is: the process could take up to 90 days. Until now, she is still waiting.

Sherman s story is not one-of-a-kind. The government program last June started uncontrollably because a large number of homeowners all around the country have been overwhelming the staff by jamming their phone lines. Frustration among housing counselors and homeowners build up due to the delays and confusion about eligibility requirements.

During the latest press briefing, President Obama expressed his frustration with the said government program. He said that the mortgage program implemented helped a lot of people in mortgage modification, however it had not been keeping pace even a lot of foreclosures are already taking place. He is asking his staff to make more aggressive actions because he is bombarded by complaints from homeowners.

Congressional Oversight Panel s Chairwoman Elizabeth Warren echoed the remarks of the president at a current congressional hearing. Warren oversees the Treasury Department s response to the financial crisis. She also stated that the program had taken a couple of weeks to set off and they are now moving very rapidly.

I think it s important that the public realize they don t have to have missed a payment on their mortgage to get help. If they see that they have a problem they should get in touch with their servicer says Warren.

Numerous homeowners who had applied for the modification of loan also get similar response like Sherman. Their respective servicers also said that the process will take longer time than expected. Majority of the trouble homeowners gave up and allowing foreclosures news to come up because the waiting time for processing these requested modifications gets extended.

Some federal officials also expressed frustration with the program stating that people involved should need to do a better job in order to meet the public s expectations.

As long as these needs for loan modifications are met, we may expect to hear more foreclosure news as more and more troubled homeowners fail to salvage their properties.

Foreclosure-prevention policies called ineffective

State foreclosure-prevention programs have failed to save borrowers from losing their homes and haven’t improved their chances of modifying loans.

Foreclosure Prevention Program

Professionals claim that the following round of possible foreclosures is bigger compared to the recent debacle of mortgage.