The Obama administration's mortgage modification program is planned to help out the struggling American homeowners to avoid foreclosure, but almost half the 1.3 million house owners who have started the program are by now not at home, as per government information.
The mortgage modification program has turned out to be best program if seen from the banker's viewpoint, but not much has been done for borrowers under the program. The mortgage modification program that Obama's administration had started is getting low than lower response from the borrowers. As the statistics reveal, as many as 1.24 million borrowers had applied for the mortgage modification program of Obama; out of which, around one-third of the borrowers have just relinquished it for many reasons altogether. This seem to be a giant wake-up call for the Obama administration who was otherwise not aware of such a poor response for the mortgage modification program. Potential sources in the administrative wing clearly marked out that the housing market was better at the time when Barack Obama had taken charge in the oval office than now.
The $75 billion mortgage modification program has shown poor response by approximately 50,000 loan borrowers. The reason behind the high dropout rate in the modification program had been that initially Obama administration had pressured the bank to instigate the borrowers to sign for the home mortgage ignoring the necessary pre-requisite of checking the proof of the income of the borrowers. However, later when the bank owners found that many of the borrowers did not meet one or the other requirements; they were disqualified or dropped from the scene. The borrowers in mortgage modification program on the other hand had their own story to put up on this account. Most of the borrowers felt that the banks had misplaced their home mortgage applications. Again; the mortgage industry put forth their defense by saying that the borrowers under mortgage modification program have not responded affirmatively by sending the completed paper work. Before it is too late, get started now if you really want to know about the Obama's loan modification program. The program is more of a pro-banker type; and it has little to benefit an average borrower or his or her family.
The officials in the Obama administration process say that mortgage modification program is still of great help for the people who have otherwise been disqualified by the banks. Statistics further reveal that borrowers who were otherwise disqualified from mortgage modification program are availing alternative loan modification from the respective lenders, with only 7% of them going for the foreclosure. It is imperative to note here that borrowers can easily avail the best mortgage deals out there. It is quite clear that mortgage modification program is more on the side of bankers and less on the side of individual borrower.Overview:
The mortgage modification program was specially intended by Obama's and his administration to helped slow down the current drop in the accommodation which are currently most pretentious market in America is the housing market in this depression period and the collision on the average people is very deep altogether. Since the market value has crashed down, many people are not capable to find any equity for their home and property as fit. So mortgage modification program has been planned and cut down so that every home-owner can apply for the same with any legal workout, as there are some requirement, guidelines and deadlines to be able to qualify to be met by the lender or the buyers who are facing foreclosure of home.
Marshall Fairchilde is a business writer on Refinanceitt.com, a US mortgage refinance service provider, which provides detailed information about consumer guide to mortgage loan modification
programs and guidelines. Learn about loan modification eligibility, available programs to help you prevent foreclosure of home.