Mortgage Rescue, Loan Modification | featured news

Bank of America will on Wednesday announce plans to start forgiving mortgage loan principal for troubled homeowners who owe more than 120 percent of their home's value or are battling ever-expanding "negative amortization" loans.

The average homeowner in the Obama administration's signature foreclosure-prevention program owes more on their mortgage than the home is worth, yet the program does virtually nothing to address this problem, according to a scathing new report by a government watchdog.

More than 170,000 troubled homeowners are breathing a lasting sigh of relief now that they've received permanent modifications under the Obama administration's foreclosure prevention program.

Mortgage servicing companies have the complex task of figuring out if millions of borrowers qualify for mortgage modifications. And there has been some progress lately getting homeowners sign up.

After a slow start, the Obama administration's mortgage relief program has reached one in five eligible homeowners, a government report says.

Bank of America trails other banks in refinancing mortgages ahead of government deadline.

Half a million troubled homeowners have seen their loan payments lowered under an Obama administration program.

The case of Carrington Mortgage shows how some loan modifications benefit only the lender.

The Treasury said less than 10% of eligible borrowers have received trial modifications under the White House's effort to help struggling homeowners.

The Obama administration is pressing mortgage-servicing companies to step up their efforts to modify troubled loans under its housing-rescue program.