Greetings neighbors,

It looks like the Obama Administration's attempt to help distressed homeowners is dropping in the ranks.

According to a recent report, many distressed homeowners are beginning to drop out of the Home Affordable Modification Program and are starting to acquire private help from their mortgage companies.

Although recent data showed a 15% increase in permanently reduced payments last month to 340,459; the rate of temporary three month modifications increased by only 2.5% to 1,244,184.

In addition, recent data showed an increase in the cancellation of mortgage modifications. In comparison to April 2010, there was a 55% increase in cancellations for May 2010. Permanent modification cancellations also showed a great increase by rising 70% to 6,357 last month.

The report also included that distressed homeowners who experienced the cancellation of their temporary government modifications received alternative modifications from one of the eight mortgage servicer giants such as: Bank of America, CitiMortgage and JPMorgan Chase.

The overall goal of the Obama Administration's $75 billion Home Affordable Modification Program was to modify the mortgages of 3-4 million distressed homeowners by the year 2010.