Foreclosure Crisis

How Banks and Government Fail Homeowners

Systemic failures at the country's banks and mortgage servicers have exacerbated the most severe foreclosure crisis since the Great Depression, making it extremely difficult for struggling homeowners to win a loan modification. Government efforts to limit the damage have fallen woefully short.

Profiled Homeowner Gets a Mortgage Modification

Wells Fargo has finally given a loan modification to a long-frustrated homeowner who had feared foreclosure. The good news for Suzanna Wertheim came after ProPublica told her story and she appeared on "The Rachel Maddow Show."

Loan Mod Profiles: Fed Up, Giving Up

A Baltimore homeowner tells why he walked away from his home rather than continue to deal with the loan modification program. His story is all too common.

For Gov't Mortgage Mod Program, New Numbers Show Old Problems

Homeowners still have long, costly waits in the federal foreclosure-prevention program. And for many seeking mortgage modifications, the final answer is no.

Loan Mod Profiles: Delayed Then Denied, Often Mistakenly

Homeowners rejected for mortgage modifications tell of errors by their loan servicers.

Homeowner Questionnaire Shows Banks Violating Gov't Program Rules

Mortgage servicers regularly make errors and break the government's loan modification rules, including giving no reasons for a loan's rejection, homeowners report to ProPublica.

Loan Mod Profiles: The Runaround

Many who are facing foreclosure say that paperwork errors and other problems are bogging down mortgage modifications.

The Reporting Matchmaker Is Looking for More Loan Mod Stories

Homeowners are trying to avoid foreclosure, and journalists want to tell their stories. Here is a chance to get involved.

After Fannie Error, Treasury Issues Correction on Mod Program Default Numbers

The government's latest, promising numbers on its mortgage modification program turn out to be wrong. But the new data remains encouraging.

New York Jumps Ahead of Feds With Law Holding Mortgage Companies Accountable on Mods

New York State has new laws to do what Washington hasn't: hold mortgage companies accountable for their treatment of homeowners seeking modifications.

Resources for Investigating Investor Restrictions on Mortgage Modifications

Our guide on how to investigate the investors' contract that governs your mortgage.

When Denying Loan Mods, Loan Servicers Often Wrongly Blame Investors

Homeowners who are refused mortgage modifications are sometimes given a reason that is false. Some loan servicers say that mortgage investors won’t allow the modification, but that is seldom the case.

Loan Mod Backlogs Continue Despite Servicers' Pledges to Improve

Loan servicers in the federal mortgage modification program continue to have large backlogs, but the administration has not responded with penalties. Many homeowners continue to be stuck in trial modifications.

In Financial Regulation Bill, Increased Transparency for Loan Mod Program

The formula for testing homeowners’ eligibility for a mortgage modification will not be a secret anymore. The Treasury Department will now have to post the details online.

Survey: Homeowners Working With Servicers Often Blindsided by Foreclosures

Many housing counselors in California are seeing clients lose their homes while pursuing mortgage modifications. That’s not supposed to happen, but there have been no penalties for the banks involved.

No Penalties for Mortgage Company with Worst Loan Mod Backlog

Saxon Mortgage has the largest proportion of homeowners caught in modification limbo, yet has not been subject to any government penalties.

Chase Leaves Thousands Stuck in Loan Mod Limbo

New data show that Chase has the most homeowners who have waited more than six months for a final answer on whether they’ll get a permanent mortgage modification. Trial modifications are supposed to last only three months.

Loan Mod Logjam Continues for 265,000 Homeowners; Failures Jump

Many homeowners who have started in the government's mortgage modification program have been stuck in trials longer than six months. And nearly as many have been dropped from the program as have received permanent mods.

Gov't Loan Mod Program Leaves Some Homeowners Worse Off

When some candidates are booted from a home loan modification trials, they discover they owe more than if they had never had a modification at all – even if they kept up with the payments.

Only $242 Million Spent So Far on Gov't $75B Mortgage Mod Program

The progress of the program to stanch home foreclosures is still painfully slow, with only $242 million of the pledged $75 billion for loan modifications spent by the end of March.

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