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Nearly 50 percent leave Obama mortgage-aid program

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posted on Aug, 20 2010 @ 08:26 PM

WASHINGTON – Nearly half of the 1.3 million homeowners who enrolled in the Obama administration's flagship mortgage-relief program have fallen out.

The program is intended to help those at risk of foreclosure by lowering their monthly mortgage payments. Friday's report from the Treasury Department suggests the $75 billion government effort is failing to slow the tide of foreclosures in the United States, economists say.

More than 2.3 million homes have been repossessed by lenders since the recession began in December 2007, according to foreclosure listing service RealtyTrac Inc. Economists expect the number of foreclosures to grow well into next year.

"The government program as currently structured is petering out. It is taking in fewer homeowners, more are dropping out and fewer people are ending up in permanent modifications," said Mark Zandi, chief economist at Moody's Analytics.


good luck all of you out there....

Man..that is just wrong..I mean really?..

over 50% have left already....good grief..

And this says it all right here..

Many borrowers have complained that the government program is a bureaucratic nightmare. They say banks often lose their documents and then claim borrowers did not send back the necessary paperwork. The banking industry said borrowers weren't 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 homeowners were disqualified or dropped out.

posted on Aug, 20 2010 @ 08:37 PM
I've spent the past 16 months just trying to get into it!!!

Chase banked has [snip]ed us over and over again. When they finally put us into a "trial modification program" and promised to resolve the modification within 30 days, more months passed. We paid our modification amount for 6 months. Just last month they "Sold" our mortgage and the new lender is telling us "Tough [snip]! Nothing is documented" and they are putting us into default.

After trying for almost a year and a half to do the right thing, I'm about to tell 'em that the key is under the mat and they can have the frikkin' place! I'm willing to bet that had I been a minority with no prayer in hell of maintaining ANY mortgage, I would have been approved and entered into aprogram within weeks!

posted on Aug, 20 2010 @ 09:04 PM
reply to post by kozmo

wow..that really sucks..

i'm sorry to hear that my friend..

so getting out is easier than getting in?

posted on Aug, 21 2010 @ 05:34 PM
reply to post by kozmo

After trying for almost a year and a half to do the right thing, I'm about to tell 'em that the key is under the mat and they can have the frikkin' place! I'm willing to bet that had I been a minority with no prayer in hell of maintaining ANY mortgage, I would have been approved and entered into a program within weeks!

I think you are right on with that statement..

posted on Aug, 21 2010 @ 05:52 PM
Yea, ur better getting out anyways. That loan modification is dirty anyways. All they do is throw tens of thousands of fees and interests into the new loan and extend it another 30 years of mortgage to give u the illusion that your payment is going down, when it actually gets extended to a 60 year term and most likely the loan probably won't end until years after your lifetime.

[edit on 21-8-2010 by amfirst]

posted on Aug, 21 2010 @ 07:26 PM
i say give it back. thats what i did.
after the housing market collapsed we tried to do a regular refinance but since out house was worth 70,000 less than we owed we couldnt refinance.

so we asked for a reduction in interest from the lender. their response: we cant help you because your mortgage is current, you have to be late to qualify.
so a few months go by after my job cut back hours to avoid laying me off we called again. same crap, you have to be late on a payment to qualify. my response? "ok well good luck selling it !!!" and we gave it back.

a year later it still sits vacant.

posted on Aug, 21 2010 @ 08:13 PM
reply to post by turbokid

Same thing to me, they sad I should be late to start talk , when I was late they sad they could't help me. n .

Obs : my house value is half of what I own.

[edit on 21-8-2010 by ShadowKnight322]

[edit on 21-8-2010 by ShadowKnight322]

posted on Aug, 21 2010 @ 11:11 PM
I'm going through this nightmare right now.

I started this process in May. They keep telling me they will send out the forms for me to sign within 10 days - the papers never come. They can't explain why.

posted on Aug, 21 2010 @ 11:18 PM
They can't forclose if that don't have the paper!
Don't sign over the owner ship of the note!

So when the time comes to foreclose on the loans the actual lender is difficult if not impossible to ascertain. So, you many does this benefit me? One of the things you can do when facing foreclosure is to demand that the bank show you the original note, in other words proof that they own your home. They have to prove that they OWN the note (your home). A bank cannot take your home if they have no proof of ownership. This tactic has worked with people who have been sued by credit card companies. The debt from a credit card company has been bought and sold so many times that in many cases the collection agency has no legal proof that they own the debt or that you owe the debt. Without that proof they are NOT entitled to collect it from you

posted on Aug, 22 2010 @ 09:08 AM
reply to post by Danbones

I'm actually working with a law firm on that right now. We are preparing a MERS record search and demanding the original note. This should be loads of fun as the loan has been sold three times in as many years. There is no way in hell that they will be able to produce any viable, legal paperwork to support their assertion that they hold any legal claim or title to the property. I'm beginning to believe we may end up with the house free and clear of any encumbrance.

Ironically, when I pointed this out to my servicer, they sudenly got very nice and cooperative with me - offering to "Expedite" the modification as soon as they receive the paper work. Makes me even that much more certain that I need to demand the MERS records and have them inspected by a lawyer. The second I sign a modification, I sign away my right to challenge title as new title will have been established.

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