U.S. Sees More Modifications Begun Than Foreclosure Completions

A new report reveals that the government programs aimed at providing debt relief to homeowners are still facing obstacles, but making improvements.

According to the Treasury Department, more than 3.15 million modification applications were sent for processing between April 2009 and June 2010. Modification arrangements include trial modifications offered through the Home Affordable Modification Program, loss mitigation and early delinquency intervention through the Federal Housing Agency and HOPE Now proprietary modifications. The number of helpful programs offered doubles the 1.24 million foreclosures that were completed during the same time period.

"Through the Obama administration's efforts over the past 16 months, we have seen increased price stabilization and improved home affordability for prospective, qualified homebuyers. At the same time, we know that we must continue to provide support to underwater borrowers, unemployed homeowners, and to the nation's hardest hit neighborhoods," Department of Housing and Urban Development Assistant Secretary Raphael Bostic said.

Many government officials have criticized the effectiveness of government mortgage-aid programs, but hundreds of thousands of U.S. citizens have been successful in making their home loan payments more affordable through these initiatives.