Government Foreclosure Prevention Program Helps Less Than 10 Percent

While the United States Department of the Treasury claimed in March 2009 that President Barack Obama’s Making Home Affordable Program would offer assistance to as many as 7 to 9 million homeowners, the Atlantic reported on November 3, 2011, that the number of people to receive assistance more than two years later has yet to hit the first million. The Atlantic concluded that only 723,000 have been able to successfully take advantage of the federally mandated foreclosure help, translating to a success rate of about 8.5 percent of the 8.5 million struggling homeowners.

While 723,000 either continue to pay their permanently modified mortgage or have since paid off their home, the Atlantic also calculated that there are 2.2 million homeowners who are more than 60 days delinquent as of June 2011 and another 5.6 million homes lost through foreclosure, which have been auctioned or repossessed by banks since April 2009. The Treasury says just over 2.5 million homeowners satisfy the specific eligibility requirements of the program.

However, the Atlantic said that of those 2.5 million, about 1.9 million trial modifications have been offered and 1.7 million trials actually began. While many sought to avoid having to file a bankruptcy means test as part of the Chapter 7 bankruptcy process, only 857,000 were granted permanent modifications. The Atlantic noted that the fair number who re-defaulted left the 723,000 figure. It also leaves millions of other struggling homeowners needing a Maryland bankruptcy lawyer.

Law Firm of Kevin D. Judd – Maryland bankruptcy attorney

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