Homeowners Try To Hang On As Foreclosure Prevention Programs Move Slowly

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The Obama administration claimed that it is going to lend help to as much as 4 million homeowners to be able to make modifications to their loans. According to the Treasury Department, over 200,000 of these loan modifications are offered to date. This means that there are still millions waiting for their turn. This could also mean that if these trouble homeowners are not reached on time, more foreclosure news will be heard.

Deborah Sherman is one of those homeowners who are waiting for their turn on the loan modification. She applied for the government program in March 4, a day after it was announced.

Since then, all she heard from Chase, her loan servicer, is: the process could take up to 90 days. Until now, she is still waiting.

Sherman's story is not one-of-a-kind. Back in June, the program started in a chaotically as a multitude of homeowners all across the country jammed phone lines, overwhelming the staff. Frustration among housing counselors and homeowners build up due to the delays and confusion about eligibility requirements.

"I think ... our mortgage program has actually helped to modify mortgages for a lot of people, but it hasn't been keeping pace with all the foreclosures that are taking place," said President Obama during a recent press briefing, expressing his disappointment with the program. He is asking his staff to make more aggressive actions because he is bombarded by complaints from homeowners.

At a recent congressional hearing, the president's remarks were echoed by Elizabeth Warren, chairwoman of the Congressional Oversight Panel. The answer of the Treasury Department with regards to financial crisis has supervised by Chairwoman Warren. She also stated that the program had taken a couple of weeks to set off and they are now "moving very rapidly."

"I think it's important that the public realize they don't have to have missed a payment on their mortgage to get help. If they see that they have a problem ... they should get in touch with their servicer" says Warren.

A lot of homeowners have already applied for loan modifications with their respective servicers but are still getting the same response as Sherman and the waiting time takes longer than expected. Majority of the trouble homeowners gave up and allowing foreclosures news to come up because the waiting time for processing these requested modifications gets extended.

Frustrations towards the program were expressed also by several federal officials. They said, "People who are engaged in this program must need to perform better job so that expectations of the public will be met."

As long as these needs for loan modifications are met, we may expect to hear more foreclosure news as more and more troubled homeowners fail to salvage their properties.

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