From the Associated Press
WASHINGTON — The number of homeowners in the Obama administration’s flagship foreclosure-prevention program is growing, data released Wednesday show. Yet it’s not all good news.
About 231,000 homeowners had completed loan modifications through March. That’s about 21 percent of the 1.2 million borrowers who began the program over the past year.
But another 158,000 homeowners who signed up have dropped out — either because they didn’t make payments or failed to return the necessary documents. That’s up from about 90,000 just a month earlier.
Many more applicants are still in limbo, awaiting a final answer from their bank. Meanwhile, a Treasury Department official said Wed nesday that the administration is working to get the foreclosure-prevention effort on track after a slow and problem-plagued start.
The program is designed to lower borrowers’ monthly payments by cutting mortgage rates to as low as 2 percent for five years and extending loan terms to as long as 40 years. Mortgage firms get taxpayer incentives to lower borrowers’ monthly payments.
Homeowners have to complete at least three months of payments to qualify. Treasury officials say many disqualified homeowners will end up getting help anyway
