There is a post on CNN Money today that reflects on the 500,000 homeowners who have found assistance through the Obama plans. As it is great for all the families that found the assistance that they needed, which we applaud them for because of how terrible the banking system is at processing these plans, we feel the unsung hero’s or the other 7,000,000 people (the shadow inventory of homes held by the banks) for some reason don’t come up nearly enough in these stories. The 7 Million homes now set to hit the market in tranches that are by many estimated to bring yet another recession, maybe even worse than the last one.
We are processing hundreds of short sale and other programs and we see these problems getting worse before they get better…
The administration reaches its goal a few weeks early. But it remains to be seen how many of these trial modifications will work.
Last Updated: October 8, 2009: 4:40 PM ET
NEW YORK (CNNMoney.com) — Loan servicing companies have put 500,000 troubled borrowers into trial mortgage modifications, the Obama administration said Thursday.
The administration set that target in late July after it came under fire for not helping homeowners fast enough.
Officials have increased the pressure on servicers to speed up their implementation of the president’s foreclosure prevention plan, which calls for reducing eligible borrowers’ monthly payments to no more than 31% of their pre-tax income. Servicers had until Nov. 1 to hit the half-a-million mark.
The administration also released a related report Thursday showing that 16% of eligible troubled borrowers at least 60 days delinquent were placed into trial modifications as of the end of September.
Read more: http://money.cnn.com/…/Mortgage_modifications/index.htm