Gov’t Loan Mod Program Leaves Some Homeowners Worse Off

Susan Lauten had done everything right during her trial mortgage modification under the government’s program to help struggling homeowners. She had submitted all the necessary paperwork and made the required trial payments on time each month.

Trial modifications are supposed to become permanent after three months of successful payments. But even though she held up her end of the deal, she found herself booted from the program, joining a swelling number of homeowners who are finding themselves in a situation that’s worse than if they had never entered the program to begin with.

And it’s just the latest example in a litany of problems that have beset the government’s efforts to save millions of struggling homeowners from losing their homes.

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