Among the big lenders, who received TARP monies, Bank of America had the worst record. The nations largest lender had only completed 98 modifications for the 160,000 borrowers who had signed up by the end of November.
The weak results mean Obama admisistration is not going to hit its long term target of helping 3 million borrowers with loan modifications. 31,000 comparied to 3,000,000 is less than one tenth of what Obama thought was possible. I guess that we could say that only a few get loan modifications.
The more borrowers the program can't reach, the more foreclosed homes or short sales that will spill onto the market. Which pulls down the real estate market. The Treasury Department will step up its pressure on the banks to do something with the loan modification situation.
The article went on to say that the administration's focus is to "get as many of those eligible homeowners as posible into permanent modifications," said Phyllis Caldwell, chief of Treasury's homeownership preservation office. Could we do worse than having a focus and a department who fails this badly. How could you do worse?
When the poor progress was clear last summer, the Treasury Department set a goal of enrolling up to 500,000 borrowers by November 1, 2009.
Under the program, eligible borrowers who are behind or at risk of default can have their mortgage interest rate reduced to as low as two percent for 5 years.
It is a major failing of the Obama administration that only a few people get a loan modification when they ask for it.
Tim Lorenz
Instant MLS Listings & Free Market Analysis
"We have actually closed many short sales!"
949-282-2521
Tim Lorenz . Over 40 Years Experience Representing South Orange County Home Buyers, Sellers, Investors and Relocations!
No comments:
Post a Comment
http://www.markandtim.com