As part of the economic stimulus package, the Federal government established the Home Affordable Modification Program. Although many people are enrolled in the program, only a small portion have converted their temporary loan modifications into permanent modifications. Many people are having difficulties making the cuts permanent. Although the government predicts that 325,000 people will have made their loan modifications permanent by the end of the year, analysts indicate that this number is highly inflated.
The Treasury Department has stated that it will be monitoring lenders and requiring them to submit plans for increasing the number of loan modifications that convert from trial to permanent. Lenders who fail to comply will be subject to fees and sanctions. Individuals seeking to avail themselves of this program can find more information here.
