The Daily News reports this morning that Obama's administration flagship effort falls short: one-third of the 1.24 million borrowers who have enrolled in the $75 billion loan modification program have dropped out. Therefore, the analysts speculate that the majority of borrowers will still wind up in foreclosure. In other words, a new wave of foreclosures is being predicted.
Further, the article states that even after the loans are modified, the borrowers are "simply stuck with too much debt -- from car loans to home equity loans to credit cards."
Nevertheless, the federal bankruptcy programs offer the borrowers more relief in being able to wipe away those home equity and credit card debts plus offer automatic stays on the foreclosure process.
Contact the Pasadena law firm to handle your debt relief needs!
--RoseAnn Frazee
Bankruptcy May Offer Better Program Than Obama's Mortgage Relief Program
June 22, 2010
