Obama’s Mortgage Program Hitting Snags
I know this is the case because a good friend recently walked away from his home because there was too much paperwork to fix it and the value of the home wasn’t enough to justify saving it. And my guess is if this is happening in Missouri, it’s happening across the board.
The program is beset with problems, say borrowers, housing counselors and even the president himself.
Loan servicers are overwhelmed by the numbers of homeowners applying for loan modifications or refinancing. Borrowers are frustrated that their paperwork is being lost, and calls are not returned. Administration officials are racing to roll out new features to improve the program.
So what does Obama have to say about it?
Refreshingly, he’s not hiding the fact that there are problems…
“Our mortgage program has actually helped to modify mortgages for a lot of our people, but it hasn’t been keeping pace with all the foreclosures that are taking place,” Obama said last month.
Here’s the thing…at least he’s being honest. This administration is admitting difficulties and promising to revise. A far cry from the rosy, dishonest information we were fed the last eight years. And I’m confident that if they’re publicly acknowledging this, they’re already working on fixes to get this moving again.
One of those fixes might be to light a fire under the banks since it seems like they’re seriously dragging their feet…
Even many of those whose applications are deemed complete say they never receive final approval or are told they can’t be helped now because they haven’t missed a payment.
“We are trying to refinance but are getting the runaround from the bank,” Janeen, a Los Angeles homeowner, wrote on a CNNMoney.com Talkback. “[T]hey keep stalling, missing appointments and forgetting to send us paperwork.”
More as it develops…