Persistence: Key to Avoid Foreclosure and Bankruptcy Houses

by cassy82 | October 13, 2009 at 08:07 am

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Homeowners and industry experts agree that the federal, state and local efforts to stave off foreclosure and bankruptcy houses by modifying or refinancing loans are not working as expected. The problem is the underestimated length of time it takes to complete the process.

Many struggling homeowners who want to save their properties from becoming foreclosure and bankruptcy houses were given hope with the Obama Administration’s loan modification or refinancing program.

But since the inception of the program early this year, it failed to meet its target number of modifications. The major complaint of many distressed homeowners is the lengthy process. Some of them even complained that by the time any response has been made by lenders on their modification request, it is too late for them to save their properties from becoming foreclosure or bankruptcy houses.

At a meeting on the effectiveness of the Home Affordable Modification Program (HAMP) of the government, conducted in Philadelphia, Pennsylvania, officials of Freddie Mac, Fannie Mae and Treasury who are responsible for the program gave it an average progress rate.

By Cassiano Travareli