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Wednesday, December 22, 2010

More people fell out of Obama mortgage-aid program

This has been no surprise.  Most homeowners that get a permenant modification can't afford it, so they drop out.  Then some of the drop out get private modifications from the bank.
The Treasury department said Wednesday that about 774,000 homeowners have dropped out as of last month. That's about 54 percent of the more than 1.4 million people who applied. And it's up from October, when approximately 756,000 had fallen out.
The program is intended to help those at risk of foreclosure by lowering their monthly payments. Borrowers start with lower payments on a trial basis. The program has struggled to convert them into permanent loan modifications.
Another 505,000 homeowners have secured lower payments permanently. That's about 35 percent of the number who enrolled on a trial basis, up slightly from October's reading.
Based on some data analysis the final drop out rate could be as high 85%!

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