Obama Mortgage Plan Is Not Producing Expected Results

July 26, 2009 - PRLog -- Mortgage plan launched by Obama fails to produce the expected results because of the countless number of applications. Servicers working to help the people with program fail to meet the desired results as they are unable to attend all the applications. People are complaining against being not listened as they are not getting proper information neither they are getting attention of servicers. Thousands of applications are in queue and the servicers are overwhelmed to see the flood of applications.  

Reason behind the number applicants for this program is the services being provided by the program. Under this program people with even very little or no equity in their home can avail this program. Under this program people having loans of up to 125% of the value of their property can apply, if they meet the other criteria. Even the people suffering with risk of default can apply for this program and they can lower their monthly payments to no more than 31% of their pre-tax income.  

Announcements made in February were implemented in the starting of April. As a result the program has produced more than 200,000 trial modifications and 20,000 refinancings. Borrowers are advised to make three on-time payments before the adjustment is considered official.  

“I have contacted my servicer 27 times so far, still no satisfactory answer I could get,” a homeowner said. Even Obama has accepted that the mortgage program could not get satisfactory results to us. This is just because of the number of applications. One more reason behind the failure of the program is that the servicers neither have hired enough trained staff nor they have updated the program on their computers.

You can get more information at http://www.homemortgageloanz.com.