The Facts About Loan Modification

Millions of homeowners want one and most believe they will get one.  Unfortunately the facts about loan modification paint a bleak picture.  So few homeowners now obtain effective relief that in reality loan modification should be considered a myth. The Obama administration's Making Home Affordable (MHA) program has sparked the public's interest in loan modification but unfortunately the results have been marginal at best . 

According to the U.S. Treasury Department only about 9% of the homeowners that need mortgage relief are getting it through loan modification (with MHA or non-MHA programs).  Of the 1,214,085 trial modifications initiated under the MHA program only 299,092 have resulted in a permanent loan modification (less than 1 in every 4).  The results are even worse if we look at loan modification in general (MHA and non-MHA), fewer than 1 in 10 homeowners have obtained effective relief.

SO WHY ISN'T LOAN MODIFICATION WORKING?