Federal Mortgage Modification Plan Participants Avoid Foreclosure Temporarily

Foreclosure prevention programs were hailed as a way to save your home if you were delinquent on your mortgage payments. By applying to trial mortgage modification programs, homeowners would receive a reduced mortgage payment plan and avoid the foreclosure process and possibility of losing their homes.

But today federal data showed over 91,000 homeowners in the trial program were kicked out of the federal program, upping the total number of canceled modifications to 521,000+ since the program began in 2009.

Why are people getting their modifications canceled? Most frequently it’s because they still cannot pay the required reduced payments. Sometimes they don’t qualify and other times they don’t submit the required paperwork.

Some fortunate homeowners might receive a modification from their lender after being denied the federal program but many end up losing their homes in foreclosure proceedings.

To read the full story, click here.

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