Mortgage Mayhem: Americans Seek Do-Over
A special series from The Street.com details the problems homeowners face when seeking mortgage-rate modifications. This is an eye opening article.
NEW YORK (TheStreet) — A year and a half after the Obama administration unveiled a sweeping rescue plan for homeowners, surprisingly few have been rescued.
The $275 billion “Making Home Affordable” program had the potential to reach up to 9 million troubled homeowners, according to initial estimates. Instead, paperwork delays, confusion over eligibility requirements and hesitance of banks to participate has left millions out in the cold.
- Just 24% of borrowers eligible for a federal mortgage-modification program have received permanent mortgage modifications. While 1.6 million homeowners were eligible as of the last report, more than half a million had abandoned the program, seeking other solutions or falling victim to the housing market’s collapse.
- Since its inception in February 2009, nearly 6 million homes have received foreclosure filings, according to RealtyTrac — despite a foreclosure-moratorium that predated the program and lasted through March.
- In desperation, homeowners have handed millions of dollars to shysters promising fast-track solutions. No less than five federal agencies and attorneys general in more than 30 states have taken action against thousands of such individuals. Yet the government response has been uncoordinated and unhelpful to those who most need assistance.
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Mortgage Mayhem: Americans Seek Do-Over
