48 percent leave Obama mortgage-aid program
WASHINGTON — Nearly half of the home owners who enrolled in the Obama administration’s flagship mortgage-relief program have fallen out.
A new report issued Friday by the Treasury Department stated that approximately 630,000 people who had tried to get their monthly mortgage payments lowered through the effort have been cut loose through July. That’s about 48 percent of the 1.3 million home owners who had enrolled since March 2009. That is up from more than 40 percent through June.
The report suggests foreclosures could rise in the second half of the year and weaken the ailing housing market, analysts say.
Another 421,804, or 32.3 percent of those who started the program, have received permanent loan modifications and are making their payments on time.
Many borrowers have complained that program is a bureaucratic nightmare. They state banks often lose their documents and then claim borrowers did not send back the necessary paperwork.
The banking industry stated borrowers were not sending back their paperwork. They also have accused the Obama administration of initially pressuring them to sign up borrowers without insisting first on proof of their income. When banks later moved to collect the information, many troubled home owners were disqualified or dropped out.
Obama officials dispute that they pressured banks. They have defended the program, saying lenders are making more significant cuts to borrowers’ monthly payments than before the program was launched. And some of the largest mortgage companies in the program have offered alternative programs to those who fell out.
The Obama plan was designed to help people in financial trouble by lowering their monthly mortgage payments. Homeowners who qualify can receive an interest rate as low as 2 percent for five years and a longer repayment period.
Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
More source:
Nearly 50 Percent Leave Obama Mortgage-Aid ProgramObama offers new mortgage relief initiatives - Business - Real estate ...
40% Leave Obama Mortgage-Aid Program - CBS News
Obama talks mortgage relief in Reno visit - News - ReviewJournal.com
Random News
- The World’s Best Cities to Live in Are…
- Positive outlook for office property in US central business districts
- U.S. Sen. Isakson Proposes Bill to Wind Down Fannie Mae, Freddie Mac
- Major US airlines step up Brazil services
- Q&a: Robert Gould, Set Decorator for ‘The Artist’ — Q&A
- Washington DC Office Market could be Affected by Budget Deficit
- US Home Prices Fall In Jan But At Slower Rate: S&P/Case-Shiller
- 10 reasons not to live in the UK
- US taxpayers get off easy, compared to some others
- Smallish cities seeing huge prospects for growth
Submited at Saturday, August 21st, 2010 at 12:00 pm on News by admin
Comment RSS 2.0 - leave a comment - trackback