First let me answer a question you may have and that is exactly what is a Mortgage Loan Modification? A Mortgage Loan Modification is a fixed alteration to the terms of a Mortgagor's loan, it permits the loan to be reinstated, and the end result is generally a lowered monthly payment the Mortgagor can afford. This sounds like a good answer when looking for foreclosure solutions.

A short while ago in a hearing, convened by the bipartisan Congressional Oversight Panel, which had been given the duty of keeping track of the government foreclosure bailout programs, the panel members hammered the Treasury Department regarding the flaws in its mortgage loan mod procedures. This hearing came only days after a report published from the inspector general showed the agency's efforts failed to have apparent benchmarks and fell horribly short of its original goals and objectives. This program was hoped to be one of the foreclosure solutions that would benefit millions of Americans that are facing foreclosure.

Despite early expectations that the Home Affordable Modification Program would help out millions of stressed US citizens rework their mortgages and retain their homes, the modification program thus far has resulted in fewer than 500,000 permanent loan mods. Even though this is large, it pales as compared to the more than 7 million households facing foreclosure. So, as for one of the many foreclosure solutions out there, thus far it has not panned out anywhere near the forecasted expectations.

Modification Program – Falling Painfully Short Of Expected Results, 2 panel members expressed their frustration of the governments foreclosure solutions.

Panel member Richard Neiman, superintendent of banks for the state of New York, pronounced the loan program has dropped significantly short of their initial hopes. J. Mark McWatters, another panel member, an attorney and accountant, said the Obama administration had failed to supply meaningful relief to distressed families and that its projections had created unrealistic hopes and anticipations that the loan modification program would likely help a great deal more families .

Phyllis Caldwell, head of the Treasury Department's homeownership preservation office, defended the Obama administration goals, saying that the impact of its foreclosure mitigation programs should not be evaluated by the volume of permanent loan modifications exclusively.

She stated a trial loan modification that is made up of three months of lowered mortgage payments have given individuals and their families desperately needed time and space, even if they don't end up being fixed permanently. She also said the Treasury Department is beginning to change and is expanding the loan mod programs hoping get to more distressed families.

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