The Bains

12% of borrowers who signed up for the government’s mortgage relief plan have been helped by
reducing payments. The Treasury Department said about 116,000 homeowners had completed the
application process as of January 2010, compared with over one million homeowners who began the
process. Over 61,000 homeowners have dropped out of the program either because they failed to make payments OR did not return the necessary paperwork. Nearly 1 of 3 homeowners with a
mortgage owes more to the bank than their property is worth, according to Moody’s Economy.com.
There are calls for a major overhaul of the program, particularly for the govt. to further encourage
banks to cut borrowers’ principle balances on their primary loans.