Posts Tagged ‘homes from foreclosures’
The Obama’s mortgage loan modification is failing miserably as the expected recovery of the mortgage industry is seriously in jeopardy. It has all indications of failure and if you look at the numbers recently release, it shows a very poor performance.
The Obama loan modification plan was suppose to be a relief to those homeowners who are in dire need of help to keep their homes and eventually save more homes from foreclosures. It was meant to be permanent help for those homeowners who are hit hard by the mortgage industry collapse. But there is only about 4 percent of the applicants were approve for the plan which means a dismal performance to say the least.
The federal government modification plan was to have these loan modifications be permanent and to get as many homeowners into the plan or program. but things are going as planned.
(The following is a part quote from AP-Associated Press article/news via Yahoo news rss feed) and it reads like this:
Among big lenders, Bank of America Corp. had the worst performance in the Treasury Department report card released Thursday. The nation’s largest lender completed just 98 modifications for the 160,000 borrowers who had signed up by the end of November. GMAC Mortgage had the most modifications of any lender, just 7,100.
About 760,000 have signed up for the program since it launched in March. But as of last month, just over 31,000 homeowners had received permanent loan modifications. Nearly the same number have fallen out of the program completely either because they missed payments or were found to be ineligible.
The report shows the administration is not going to hit its long-term target of helping up to 4 million borrowers with modified loans, said Ted Gayer, an economist at the Brookings Institution.
The more borrowers the program can’t reach, the more foreclosed homes will spill onto the market, pulling down home prices. About 14 percent of homeowners with a mortgage are either behind or in foreclosure.
This shows you bad the situation is and the recovery efforts are not really working as they ar planned. Obama or anyone else might have a hard time getting this mess fix!
So to this point the Mortgage Loan Modification plan has failed miserably and hope it will get better soon for the sake of the US mortgage industry as well as the rest of the world who relies on Big Uncle Sam to spur the world economies.
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