Homeowners face foreclosure as loan modifications fail

11/2/2010 | Bloomberg

Many homeowners across the country are being evicted and face foreclosure while participating in mortgage modification programs designed to help them avoid foreclosure. Borrowers whose mortgages are modified can still end up in foreclosure for a variety of reasons, according to the Office of the Special Inspector General for the Troubled Asset Relief Program. "They may face back payments, penalties and even late fees that suddenly become due on their 'modified' mortgages and that they are unable to pay, thus resulting in the very loss of their homes that [Home Affordable Modification Program] is meant to prevent," according to a report from SIGTARP.

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