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 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. She applied for the government program in March 4, a day after it was announced.
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. Frustration among housing counselors and homeowners build up due to the delays and confusion about eligibility requirements.
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 stated that the program had taken a couple of weeks to set off and they are now “moving very rapidly.”
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. Majority of the trouble homeowners gave up and allowing foreclosures news to come up because the waiting time for processing these requested modifications gets extended.
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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