Lenders are canceling trial loan modifications at an alarming rate. In fact, the number continues to rise so much that Citigroup has canceled the program altogether.
Citigroup, along with B of A had also been offering principal reductions to try to help home owners in trouble, but that program also seems to be offered at a reduced rate as this housing problem continues to plague, not just the U.S., but the world. Stock markets around the world have been in dive mode - the DOW dropped below 10,000 again today. The reason most often cited is the housing problem here in the U.S. which is not only not improving, but seems to be getting worse. People are not buying - while banks are sitting on cash, and tightening lending guidelines at the same time. The rationale, of course, is the fear of more bad loans.
The government advises home owners who have either been denied a modification, or have had trial modifications canceled mid-stream to keep trying other alternatives before seeking either a short sale, or letting the property go to foreclosure.
In Oregon, there is a Foreclosure help line you can try before you give up all hope. You can also try Oregon Housing and Community Services .
Oregon is one of only five states to receive extra federal funds to help home owners in distress because unfortunately this state was one of the top five hardest hit states in the country for home loans in trouble and facing default because of the excessively high unemployment rate. Oregon received an additional $50 million - it is hoped the funds will last through the end of 2010, so if you need the help, don't wait to seek it.
Most states do have some sort of help line as well. To find the help lines in your state, type your state plus "foreclosure help line" or "HOPE program" into your browser. It has finally reached a point where banks and lenders really do not want to take back any more homes, and will make some effort to try to help if they can.
Good luck out there.
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