In August, it was reported by the Treasury Department that 680,000 homeowners applied for mortgage modification, but 51% have been disqualified. In July, the figure was 48%, meaning there was an increase in disqualifications last month.
The recent report is giving ammunition to critics who have said the program has failed to decrease foreclosures. The critics say it’s better to let homeowners lose their homes and leave home prices fall.
According to Anthony Sanders, a finance professor at George Mason University, “the problem is just so huge in magnitude that there’s no viable solution that can come out of the government to solve it.”
Since December 2007, 2.5 million homes have been lost to foreclosure in the U.S.