Federal Foreclosure Prevention Plan Shows Underwhelming Numbers

A federal plan aimed at helping 3 to 4 million homeowners on the verge of foreclosure has fallen far short of expectations, enabling only about 31,000 loan modifications.

1 minute read

January 6, 2010, 7:00 AM PST

By Nate Berg


"[A]s 2010 begins, it is already clear that Making Home Affordable has fallen far short of its goals, with only 31,382 permanent loan modifications completed by Nov. 30. Last year, lenders were doing far more loan modifications on their own, before the Obama plan was launched. And although foreclosures show no signs of slowing down - the total number of foreclosures is predicted to reach 13 million during the next five years - no one is expecting a dramatic turnaround in helping people keep their homes. The only way the administration will get significant numbers of loan modifications done will be to bring back failed bankruptcy cramdown legislation, or to put billions of dollars into a mass effort to rework loans - neither of which seems politically feasible."

Industry experts attribute the small number of modified loans to procedural and bureaucratic issues, with loan servicers and the federal government pointing fingers at each other over delays.

Monday, January 4, 2010 in The Washington Independent

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Close-up of "Apartment for rent" sign in red text on black background in front of blurred building

Trump Administration Could Effectively End Housing Voucher Program

Federal officials are eyeing major cuts to the Section 8 program that helps millions of low-income households pay rent.

April 21, 2025 - Housing Wire

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

April 23, 2025 - Diana Ionescu

Ken Jennings stands in front of Snohomish County Community Transit bus.

Ken Jennings Launches Transit Web Series

The Jeopardy champ wants you to ride public transit.

April 20, 2025 - Streetsblog USA

View of residential street in Los Angeles with palm trees and hazy city in distance.

Rebuilding Smarter: How LA County Is Guiding Fire-Ravaged Communities Toward Resilience

Los Angeles County is leading a coordinated effort to help fire-impacted communities rebuild with resilience by providing recovery resources, promoting fire-wise design, and aligning reconstruction with broader sustainability and climate goals.

7 hours ago - Los Angeles County Chief Sustainability Office

Entrance sign for San Jose-Santa Clara Regional wastewater treatment facility.

When Borders Blur: Regional Collaboration in Action

As regional challenges outgrow city boundaries, “When Borders Blur” explores how cross-jurisdictional collaboration can drive smarter, more resilient urban planning, sharing real-world lessons from thriving partnerships across North America.

April 27 - * A Placemaking Journal

Rendering of Penrose Roundabout in Philadelphia, Pennsylvania.

Philadelphia Is Expanding its Network of Roundabouts

Roundabouts are widely shown to decrease traffic speed, reduce congestion, and improve efficiency.

April 27 - WHYY