President Obama’s mortgage relief program was designed to assist homeowners nationwide with whatever financial woes may be plaguing them. Instead President Obama’s flagship foreclosure-prevention program turned down 54% of the programs applicants, or about 755,000 homeowners, through the month of October.
September’s disqualification rate was 53%
Banks and borrowers alike continue to blame each other for the program’s lack of success. Borrowers have complained that lenders are losing their paperwork while lenders claim borrowers are failing to return their documents.
The program can be very beneficial to those who qualify. Those that qualify can get interest rates as low as 2% for about five years and are also given longer pay periods. If homeowners are lucky enough to receive permanent modifications through Obama’s relief program they can look at payment cuts of about $500 a month.
Permanent modifications are possible after borrowers make three consecutive payments on time.