The administration of Obama said that the program is going to give help to over 4 million homeowners for them to make loan modifications. 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 could also mean that if these trouble homeowners are not reached on time, more foreclosure news will be heard.
One of the many homeowners who waited for the loan modification was Deborah Sherman. 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.
The experience of Sherman was also experienced by most other people. Back in June, the program started in a chaotically as a multitude of homeowners all across the country jammed phone lines, overwhelming the staff. Frustration among housing counselors and homeowners build up due to the delays and confusion about eligibility requirements.
“I think … our mortgage program has actually helped to modify mortgages for a lot of people, but it hasn’t been keeping pace with all the foreclosures that are taking place,” said President Obama during a recent press briefing, expressing his disappointment with the program. He is asking his staff to make more aggressive actions because he is bombarded by complaints from homeowners.
At a recent congressional hearing, the president’s remarks were echoed by Elizabeth Warren, chairwoman of the Congressional Oversight Panel. 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. As the processing time of these modification requests get longer and longer, most trouble homeowners result to giving up and making foreclosure news rise.
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.
Provided that these needs on loan modification are achieved, we might be expecting to listen to further foreclosure news because an increasing number of troubled homeowners fall short to save their properties.
More information on ms foreclosures and foreclosures in general (often miss-spelled ‘forecloser‘) can be found at http://bestforeclosurenews.com.
