The relative failure of Obama’s plan is a particular disappointment, consumer advocates say. After spending hundreds of billions of dollars in bank bailouts, the administration proposed a plan that would pay mortgage servicers for successfully modifying eligible delinquent home loans. Investors that owned securitized mortgages that were modified would get paid, too. Most importantly, distressed homeowners would get to keep their homes.
Despite the incentives, the program hasn’t been a roaring success. The administration originally said it would “help up to three to four million at-risk homeowners avoid foreclosure by reducing monthly mortgage payments.” Thus far, about 500,000 homeowners have been placed in three-month trial plans. Though it’s still early on (the program was launched in March), as of Sept. 1 only 1,711 of the trial modifications had become permanent.
Read more at: Huffington Post
