One of the first things the Obama administration did once in office was to offer a mortgage loan modification program called Make Home Affordable, or the Make Home Affordable Modification Program. The way it worked is the government would work with the actual loan company to make a borrower’s home loan more affordable. That said, it’s much more likely not to work. It is a lot more common for people to quit than stay in.
Mortgage modification sees base receding
As outlined by CNN Money, 96,025 individuals dropped out of the actual mortgage mod program. There have only been 434,717 successful home loan alteration enrollees, and 616,389 people have dropped out once in. That means 60 percent fail. That means a person is a lot more likely to not have a successful outcome if they do enroll within the program. Essentially, that means that enrolled homeowners are ensuring a few additional pay days for loan lenders, possibly at the actual expense of the taxpayers.
Much less signing up
A homeowner must first go through 3 trial months before a permanent modification could be made. There were much less trials of course in July than June. There were 38,728 in June, as outlined by the Wall Street Journal, and 24,577 in July. However, in July there were 37,000 permanent modifications granted. There were 51,025 in June. That means they don’t have enough secured loans to cover new mods. Either that or fewer people need or can get it.
Not quite a home run
There were also 12,912 people whose permanent modifications were canceled in July. There were 272 because they paid their mortgage off. That means this program has not been a success. That means that your mortgage loan modification through the government is 60 percent likely to end in failure.
Additional reading
CNN Money
money.cnn.com/2010/08/20/news/economy/foreclosure_prevention_HAMP/
Wall Street Journal
online.wsj.com/article/SB10001424052748703579804575441701960735166.html
