The Obama administration’s loan modification program was supposedly designed to help homeowners avoid bankruptcy during the recession. We are one of the families in the program, but, unfortunately, have only had our financial straits worsened by government paper pushing and bureaucracy.

We applied for a loan modification through Bank of America in November. We have excellent credit and have always paid our mortgage on time, but found our credit-card debt rising as my husband took pay cuts and taxes rose. After temporary approval, we were given a lower mortgage payment until the modification was finalized.We were assured that as long as we continued to pay our mortgage (which we did) and sent in all our paperwork, the modification would be approved.

Six months passed.Each month, we would receive notification that the bank was missing financial paperwork. We would re-fax said papers, call and make sure it was received — which we were told it was — and then wait.February, March, April, May passed.Each month, the same cycle would repeat. My husband made the mistake of speaking to different agents each time; over 20 phone conversations took place.Irritated by the delays, he called last week and asked how the paperwork could be lost so many times. This particular agent said, no, they still didn’t have the paperwork, and we were in danger of being dropped from the program.

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