What went wrong with foreclosure aid programs?
At the time, they thought they were being reviewed for a loan modification through the U.S. government's foreclosure-prevention program.
A Realtor knocking on their door to tell them to vacate told them otherwise.
MORE: Comparing the foreclosure aid programs STORY: Inflated home sales figures from 2007-10 to be lowered"I'm bitter," says Steven Maultsby, 51, who works with undersea robots in the oil industry. "We did everything they told us to do."
The Maultsbys are angry not only at their mortgage company, but also at the government, and they're two voices among a discontented chorus.
The Obama administration's initial foreclosure-prevention programs, launched in early 2009, were intended to help 7 million to 9 million people. So far, they've aided about 2 million, and not all of those are out of foreclosure danger.
Programs begun later have also faltered. One intended to help at least 500,000 has helped just a few hundred a year after its launch. Another initiative to extend $1 billion to help the jobless or underemployed avoid foreclosure ended in September, obligating less than half of its funds. The unused money went back to the U.S. Treasury .
Less than 2.0 percent of the loans secured by owner-occupied homes and serviced by Wells Fargo resulted in a foreclosure sale in the last 12 months. -- Just 7.63 percent of the first mortgage and home equity loans Wells Fargo services were past due or
“Some of these are reaching the end of their mortgage term and for many, there is no alternative to the loss of their home.” Nigel Stockton, financial services director at Countrywide, says the MMR had to review interest-only.
Home prices will fall as banks dump houses at lower prices, pushing millions more into a negative equity position. Home prices will fall another 5% to 10% in 2012, with a couple years to go before bottoming. The recession will result in companies