Foreclosure prevention program problems - MSNewsNow.com - Jackson, MS

Foreclosure prevention program problems

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By David Kenney - bio | email

Jackson, MS (WLBT) Across the country foreclosure rates have reached an all time high.

Now the federal government says a program designed to give some of those homeowners some relief, is not working.

The Obama administrations flagship foreclosure program is called Making Home Affordable.

So far, it's only been useful for a small percentage of people who are facing, losing their homes.

A A.P. report show U.S. Treasury Department says over half of the 680,000 homeowners that applied for the program in August, were disqualified by the end of last month.

That's up from about 48% in July.

The program was designed to help homeowners reduce their mortgage payments.

Only 34% of those who enrolled in the program have actually received permanent loan modifications.

Critics say the program failed to slow the tide of foreclosures, for people who needed immediate financial help.

"A lot of people just have had financial difficulties. They've lost jobs, had a lot of medical expenses and they had financial difficulties and their credit scores are not high enough in order for them to purchase a home to get qualified for em," says Jackson realtor Harriott Expose.

The web site Realtytrac shows some of those foreclosures right here in Jackson.

Currently there are 925 homes in foreclosure in the capital city.

A large percentage of them are concentrated in south Jackson, where realtors say home prices and values, continue to fall.

Some realtors we talked to say the making home affordable program is not effective, because it wasn't properly staffed to handle the thousands of people who called them, needing help.

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