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The first article in the WSJ states that on October 8th the federal government said that 500,000 financially troubled homeowners had begun trial loan modifications. It cites Treasury Secretary Tim Geithner as saying that the rate of modifications is rising faster than the rate of the people needing them for the first time since the crisis began but that the number of at risk families is still “unacceptably large”.
The second article cites a report from the Congressional Oversight Panel (that’s two oxymorons in one day, very sorry) that says that the loan modification program is not set up for the “current drivers of foreclosures – borrowers with good credit who have lost their jobs and those with complex mortgages.” “The result for many homeowners could be that foreclosure is delayed, not avoided,” the report said.
