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Posts Tagged ‘mortgage modification bankruptcy chapter 13’

Report Explains Failure Of Mortgage Modification Program

In Uncategorized on July 22, 2010 at 11:31 am

Only 340,000 homeowners received a permanent modification of their mortgages under the federal program in the last 15 months. This falls far short of the expected three to four million people the program should have helped. Why has the program failed to assist more homeowers? Two reasons were cited in a recent report to Congress. The Treasury Department, the agency that oversees the program, failed to provide clear goals. The program pays mortgage service providers for loans that get modified. But in many cases, the service providers may more money if the family goes through foreclosure.

So for many people, getting rid of credit card, medical and other debt through bankruptcy is the only way to afford house payments.