WASHINGTON – Hundreds of thousands of homeowners are in limbo waiting to find out if they will be accepted for the Obama administration’s foreclosure prevention program.

Nearly 1.1 million borrowers have enrolled in the program since it started a year ago, but so far only about 170,000 have completed the application process, the government said Friday.

To receive a permanent loan modification, homeowners need to make three payments and provide proof of their income, plus a letter documenting their financial hardship. To date, about 90,000 borrowers have dropped out.

The program is designed to lower borrowers’ monthly payments by reducing mortgage rates to as low as 2 percent for five years and extending loan terms to as long as 40 years.

To entice mortgage companies to participate, the government has set aside $75 billion in subsidies, though less than 1 percent has been spent.

Tags: Foreclosures, Foreclosures in Kingman, Housing Market, Kingman Foreclosures, Real Estate Market in Kingman AZ

Posted on Friday, March 12th, 2010 at 5:43 PM and is filed under Foreclosures, Housing Market, Real Estate Market. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.