Only 1 percent move from mortgage trial modification

A recent report by the Congressional Oversight Panel, which is monitoring the government’s Troubled Assets Relief Program, found that only about 1 percent of borrowers had moved from a trial modification into a permanent one.

“In our judgment, servicers, to date, have not done a good enough job of bringing people a permanent modification solution,” Assistant Treasury Secretary Michael Barr said during a conference call with reporters.

Under the program, eligible homeowners can have their loans modified to reduce their mortgage payments to 31 percent of their income. To qualify for a permanent modification, borrowers must provide extensive documentation and make three consecutive payments to prove they can afford the new loan.

One thought on “Only 1 percent move from mortgage trial modification

  1. I can’t understand this whole process. If the gov. is making this money available to help people and the people need the help then why are servicers making the process stall? These same servicers are the very people that put people in homes they couldn’t afford or loans that were deceptive. The government needs to start looking at the middle man and answering some questions.
    If the gov. is trying to help and the people are trying to get the help then what’s the hold up. Remove the servicers from the equation until it’s time for them to be brought back into the picture.

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