Blog Post

The number of people receiving permanent loan modifications under the federal foreclosure prevention program is steadily rising according to data released by the Treasury. Over 170,000 people have received permanent loan modifications, 15.5% of those who entered the program, up from 11.5% during January. The Obama administration’s foreclosure prevention program reduces eligible borrowers’ monthly payments to 31% of pretax income. Although it has received criticism for not doing enough, 91,800 additional permanent modifications have been approved and are pending acceptance, and another 835,000 borrowers are currently in trial loan modifications. New federal initiatives have also been announced to help even more people who are struggling to keep their homes. Last month President Obama announced $1.5 billion towards the five states hit hardest by foreclosures, including California, and the government will soon implement another foreclosure alternative for people who do not qualify for modifications.

Via LA Times

Posted 16th March 2010 by Sally Forster Jones

Labels: federal second lien modification program foreclosures loan modifications obama administration