Mortgage Companies Fall Short

We've all heard the reports from the Hope Now coalition that they are helping everybody out, but the State Foreclosure Prevention Working Group (a group of state regulators and Attorneys General) have a different story. 70% of the homeowners in trouble are getting no help at all. (click here for the full AP story)

Here is an excerpt:

Efforts to aid beleaguered borrowers are still falling short as 70 percent of homeowners who are two months behind on their mortgages still aren’t getting help, a new report released Tuesday found.

Of those borrowers receiving help, only one in three completed a workout within 45 days. Slow assistance is partly why the number of homeowners facing foreclosure increased 16 percent, the State Foreclosure Prevention Working Group found in its survey of mortgage servicers.

The report, which examined delinquent loans from October to January, criticized the limited results of the Hope Now Alliance — a coalition of mortgage lenders and servicers backed by the Bush administration. The rate at which homeowners are getting help was unchanged from the group’s last report.