Permanent Mortgage Modifications Up in April 2010

The Obama administration recently announced that its program to prevent foreclosures has continued to make slow but steady progress, with the number of homeowners who have received permanently modified mortgages up about 13% in April 2010.

The 295,348 permanent modifications amount to about a quarter of the 1.2 million trial modifications started under the program, which began last year.

During the trial, banks and mortgage servicers reduced a homeowner’s monthly payment for 90 days, with a median reduction of about $500. If the homeowner made the payments and submitted additional paperwork, the servicer made the modification permanent and became eligible for cash incentives from the government. Read more »