Hello neighbors,

It looks like the Obama Administration's $75 billion foreclosure prevention program is making some type of progress slowly but surely. According to recent numbers, permanent loan modifications rose by approximately 13% during April of this year. Out of the total 1.2 million trial modifications, 295,348 were made permanent.

 During the trial period, homeowners received reduced monthly payments for a total of 90 days by approximately $500. In order for the modifications to become permanent, homeowners were required to make the reduced monthly payments and submit additional paper work.

However, there have been some cancellations in both trial and permanent modifications. Through the month of April, there were a total of 277,640 trial modifications canceled and 3,744 permanent modifications canceled by servicers. Failure to verify income before granting temporary modifications by servicers is said to be one of the chief reasons in the cancellation of these modifications.

In attempts to alleviate this issue, starting June 1, 2010, modifications will only be granted after verifying the homeowner’s income.

Because many have been criticizing the program's not so hasty pace, the Obama administration started pushing mortgage services to pick up the pace in the conversion of modifications from trial to permanent last December. This push from the Obama administration tripled the number of modifications.

As for the city with the most activity with the Home Affordable Modification Program (HAMP), Los Angeles-Orange County accounts for 6.2% with 57,758 modifications.