Mortgage Modification Programs Fail
The Obama administration’s mortgage relief program is a failure. Nearly 50 percent of the 1.3 million homeowners who enrolled in the program have been unsuccessful and have left the program. The program was initially intended to help homeowners by lowering their monthly mortgage payments. The government invested $75 million in this program.
Since the recession started in late 2007, more than 2.4 million homes have been repossessed by financial institutions. The government program, which did not work well to start, seems to be helping and fewer and fewer homeowners.
More than 650,000 homeowners who have sought to have their mortgages modified for the purpose of lowering their payments have been removed from the mortgage modification programs.
In July of 2010, almost 100,000 homeowners had their homes taken from them by financial institutions. It is expected that more than one million homes will have been taken back by financial institutions by the end of the 2010. In the year 2009, 900,000 families lost their homes in foreclosure. It is estimated that there will be 1.5 million foreclosures in the year 2011.
The homeowners we speak to and meet with in our offices have described the bureaucratic nightmare that they face with mortgage modification programs. The banks and financial institutions continually misplace or lose their documents. After the documents are lost, the banks claim they never received any paperwork in the first place. When homeowners call to talk to someone in authority to discuss modification options, they are often either ignored or transferred to low-level clerks who are unable to provide them with any information related to their modification application.
The banks and mortgage companies receive taxpayer-financed incentives to reduce mortgage payments by homeowners. They should use these incentives to hire competent employees in sufficient numbers. They should communicate with the homeowners and provide them with accurate information regarding the mortgage modification process. Mortgage modification programs should not be aggravating, complex or a poorly administered nightmare for homeowners!
Contact Us to discuss your case and our qualifications to represent you. Feel free to call toll free, any time, day or night, at 1-800-344-6431 or contact us at 718-350-2802. You can also reach us in Nassau County at 516-561-6645.
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Read our related article: How to Stop Foreclosure