San Jose Bay area people struggle to stop foreclosure

San Jose Bay area peoples explained their struggles to stop foreclosure. Many of them eventually got their expenses lowered through Federal Home Affordable Modification Program. Also many others are not eligible and are presently waiting for their chance to stop foreclosure.

The inquiry done by Treasury Department and community advocacy group was an upsetting prompt. The Obama administration loan modification program is worsening. It has enduringly altered conditions for 350,000 borrowers, about 10% of its goal. It is obvious that banks must decrease loan balances for troubled borrowers. It will work not only for homeowners and for economy of lenders, who in many cases can improve more of their investment this way than in a foreclosure sale.

Smaller and temporary changes such as interest rate decrease is not helpful for the borrowers who owe more than their homes now are value in part because the foreclosure wave has decreased their value. The decrease in principal of house owners has no incentive to make payments.