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 May 22, 2009

Why is the Mortgage Rescue Plan Delayed?
Even though the program has $75 billion in funds available to spend, the Obama administration's foreclosure prevention plan is struggling to take effect.
The program has been held up in various administrative and legal issues:

1. The largest problem involves the confusing paperwork that has overwhelmed and confused loan servicers. Many are just now only able to introduce their own versions of the program. Currently the anticipated millions of participants in this program stands at a about 55,000.

2. The second biggest problem is with investors who are at risk of losing large sums of money that would happen if changes are required to be made to previous agreements. Many investors are lobbying hard on this issue and some are even filing suit.

3. The third variable is the rising number of persons filing for unemployment benefits. Companies continue to lay workers off. If a borrower is out of work, no loan modification will help them.