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. According to the Treasury Department, over 200,000 of these loan modifications are offered to date. This will just signify that millions of people are still hanging around for their turn. This might also signify further foreclosure news reported if these trouble homeowners failed to keep in touch with the company on time.
Deborah Sherman is one of those homeowners who are waiting for their turn on the loan modification. 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.
Sherman’s story is not one-of-a-kind. 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. He is asking his staff to make more aggressive actions because he is bombarded by complaints from homeowners.
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 said that the program set off for a couple of weeks and they are now taking fast actions on it.
Elizabeth Warren stated that the public must importantly realize not to miss payments on their mortgages so they will get help. She also added that if people noticed that they are having troubles, they must stay connected to their servicer.
Numerous homeowners who had applied for the modification of loan also get similar response like Sherman. Their respective servicers also said that the process will take longer time 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.
Frustrations towards the program were expressed also by several federal officials. They said, “People who are engaged in this program must need to perform better job so that expectations of the public will be met.”
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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