Gov't mortgage plan aids 12 percent of borrowers

[BR_Parkway]

http://seattletimes.nwsource.com/html/businesstechnology/2011105554_apusmortgageaid.html?syndication=rss

The government's mortgage relief plan has helped only about 12 percent of borrowers who signed up since President Barack Obama announced the program a year ago.

The Treasury Department said Wednesday that as of last month, about 116,000 homeowners had completed the application process and had their loan payments reduced permanently. That compares with more than 1 million homeowners who started the process.

More than 61,000 homeowners have dropped out so far, either because they failed to make payments or didn't return the necessary paperwork. And hundreds of thousands more are likely to fall out soon, predicts Alan White, a law professor at Valparaiso University.

"I would say it's a complete failure at this point," White said.

Treasury officials, however, say the program is on track. The plan "is doing the job it was designed to do," Phyllis Caldwell, chief of the Treasury's homeownership preservation office said in a statement. "Struggling families are receiving payment relief and the housing market is showing signs of stabilization."

However, large banks continue to struggle with a huge volume of borrowers needing help. As of last month, Bank of America Corp. had completed modifications for just over 5 percent of the roughly 240,000 borrowers who started the process. JPMorgan Chase & Co. and Citigroup Inc. were also below 10 percent.

[NoNothing]

1. Meanwhile

Renters can suck it.

[katandmoon]

2. Phyllis Caldwell sounds just like a Republican in her utter cognitive dissonance.

[kimmylavin]

3. Or...

People could have entered the program a YEAR ago - after being told that they couldn't enter until they were actually foreclosed on.

Then they could have put together all of their paperwork and sent it in to Bank of America.
Then they could have done that again the next month.
And the one after that.
And the one after that.

THEN, they could have entered the "3-month" trial period in July, lasting through September.
After which they could have been asked to send in more paperwork.

Then they could just keep making payments, despite the fact that NOBODY from god-damned Bank of America will even get on the phone with them!!!

(No, no frustration here...)

The only part of this that is the fault of the government is that they foolishly trusted the banks to actually do what they said they would.