A new report from the Congressional Oversight Panel discovered that for every one home saved from foreclosure, 10 more families have lost their homes. The report suggested that although President Barack Obama’s home loan modification programs had the best intentions, they’re simply not keeping the pace with the substantial number of foreclosures hitting the market.
Not Enough Modifications to Keep Up
According to the panel, only 168,708 homeowners have received mortgage assistance via long-term modifications under the president’s plan. This number pales in comparison to the 6 million borrows who are more than 60 days behind on their loans.
In total, the panel predicts that the president’s foreclosure prevention plan will likely only help 1 million troubled borrows as opposed to the 4 million he set out to help.
Will Homeowners Get the Help They Need?
While the program is funded with $50 billion in TARP funds, the problem isn’t the money. There seems to not be enough staff on hand around the country to keep up with the demand. However, this doesn’t mean that you should make your attempt to get the help you need.
Mortgage rates are still hovering around 5 percent, which means you could make an attempt to refinance for a lower rate on your home. Some lenders have even lowered the principal to help borrowers get back on track.
It’s important to know that there are programs available set out to help. So get your name on some lists to start the process of getting the help you need.
