WASHINGTON (KCBS) – The Obama administration is becoming impatient with the slow pace by which mortgage companies are modifying loans for millions of homeowners.
The $75 billion taxpayer-financed program has averted a relatively small number of foreclosures.
As KCBS’ Susan Leigh Taylor reports, there’s a bit of a mystery as to why things are moving so slowly. “This much we know, the mortgage servicers, which is to say these companies that send you your monthly bill, are swamped with applications,” explained Peter Goodman, a New York Times national economics reporter who has been exploring the situation. “They don’t have a lot of people answering the phone. They don’t have a very good tracking system or filing system and applications are getting lost.”
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I am divorced mom struggling with my mortgage. Income reduced due to divorce. My original mortgage was $1115.26 when the income was more than $55000. Now my income is only $22000.I got approved for Obama plan for modification. WellsFargo gave me new payment for $1028.67 month. I owe on the house $103000. The loan is for 30yrs and 7 yrs ago we bought the house. I am concerned what kind of help is this to help me save the house from foreclosure. Can someone help me to understand how am I going to save this house with less than $100 a month? I make $11.24 per hour. Work 40 hours a week. And get child support $614 month. That’s my income and only less than $100 to help me from GOVERNMENT???? Please help me what should I do. I have been faxing my problem to white house for past 2 weeks but no help from here either. Who can help me?
Hi Nancy, this is everyone’s complaint. I called a HUD approved counselor you know that HOPE line, when i gave them my income debts they told me that i had a surplus of $100 dollars a month, that means that i am able to pay my mortgage and live with that surplus [ha, ha], i told them how about my taxes and homeowners insurance, thats not included on my monthly mortgage, they then said well this is all we can do, so i say….that since the government is looking to eliminate programs to cut costs, programs that do not work and obviously it isn’t helping anyone, then start by eliminating this one. This HOPE program has done nothing for homeowners, but tell the what they already know, this is not rocket science.
My advice to you, email the obamas, i have and recomend that everyone else does, it is the only way to let government know the abuse of these modifications, they are not helping they are setting you up for failure. According to the criterias for the obamas modification plan, your monthly mortgage cannot exceed 31% of your net or gross monthly income, so if your monthly income is 1,823 your mortgage should be around $600.00.