Homeowners Try to Hang On as Foreclosure Prevention Programs Move Slowly

The Obama administration claimed that it is going to lend help to as much as 4 million homeowners to be able to make modifications to their loans. The Treasury Department claimed Over 200,000 of the said loan modifications are presented to date. This means that there are still millions waiting for their turn. This could also mean that if these trouble homeowners are not reached on time, more foreclosure news will be heard.

One of the many homeowners who waited for the loan modification was Deborah Sherman. A day on March 4 before it was proclaimed, she applied for the said government program.

Since then, all she heard from Chase, her loan servicer, is: the process could take up to 90 days. Until now, she is still waiting.

The experience of Sherman was also experienced by most other people. Back in June, the program started in a chaotically as a multitude of homeowners all across the country jammed phone lines, overwhelming the staff. Because of the confusion and delays regarding eligibility requirements, disappointments build up among homeowners and housing counselors.

During the latest press briefing, President Obama expressed his frustration with the said government program. He said that the mortgage program implemented helped a lot of people in mortgage modification, however it had not been keeping pace even a lot of foreclosures are already taking place. Because of that reason and due to the fact that a lot of complaints from the home owners are already attacking him, he was asking his staff to put into practice more forceful actions.

At a recent congressional hearing, the president’s remarks were echoed by Elizabeth Warren, chairwoman of the Congressional Oversight Panel. The answer of the Treasury Department with regards to financial crisis has supervised by Chairwoman Warren. She also stated that the program had taken a couple of weeks to set off and they are now “moving very rapidly.”

“I think it’s important that the public realize they don’t have to have missed a payment on their mortgage to get help. If they see that they have a problem … they should get in touch with their servicer” says Warren.

A lot of homeowners have already applied for loan modifications with their respective servicers but are still getting the same response as Sherman and the waiting time takes longer than expected. As the processing time of these modification requests get longer and longer, most trouble homeowners result to giving up and making foreclosure news rise.

Some federal officials also expressed frustration with the program stating that people involved should need to do a better job in order to meet the public’s expectations.

Provided that these needs on loan modification are achieved, we might be expecting to listen to further foreclosure news because an increasing number of troubled homeowners fall short to save their properties.

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