According to an article in the Star-Telegram , only 15 percent of homeowners facing foreclosure have been offered assistance through the government’s $50 billion loan modification program. Many mortgage lenders such as American Home Mortgage Servicing and PNC Financial Services Group Inc. have not modified a single toxic mortgage–not one with other mortgage lenders modifying as most 1 in every 4 toxic mortgage.
The article said:
“So far, more than 400,000 offers have been extended to 2.7 million borrowers who are more than two months behind on their payments. More than 235,000 of those borrowers have enrolled in three-month trials.”
When the government’s foreclosure prevention plan was initially launched, they promised that it would help nearly 4 million homeowners facing foreclosure; but to date, mortgage lenders are nowhere near that goal. But the government has insisted that the new verbal (non-legally binding) promise by mortgage lenders to modify the loans of 500,000 homeowners facing foreclosure by November 1st would make take us closer to that goal.
In the meantime millions of homeowners fight foreclosure alone, and with little or to no assistance from those who can help them save their homes. If we want to increase our chances of beating this foreclosure crisis we would be wise to reconsider the defeated legislation that would have allowed homeowners to modify their toxic mortgages during bankruptcy.