More than 170,000 troubled homeowners are breathing a lasting sigh of relief now that they’ve received permanent modifications under the Obama administration’s foreclosure prevention program.
Some 15.5% of those who entered the program have gotten long-term adjustments through February, up from 11.5% a month earlier, according to a report from Treasury officials issued Friday.
An additional 91,800 permanent modifications have been approved by servicers and are pending borrower acceptance. And more than 88,600 people have been denied lasting help because they did not meet the program’s criteria, while another 1,499 homeowners have had their permanent modification terminated.
More than 835,000 people are currently in trial modifications, a review period during which banks check whether borrowers can make the reduced payments and gather the necessary paperwork to verify income and hardship. The administration’s foreclosure prevention program reduces eligible borrowers’ monthly payments to 31% of pre-tax income. Participants typically have their loans reduced by $519, or 36%.
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Article courtesy cnn.com