The Obama administration has recently announced new strategies to increase the amount of borrowers eligible for mortgage relief.

The Treasury Department announced plans to investigate the activities of the most prestigious mortgage servicing firms. The department also announced that it will be obligating mortgage companies to come up with plans to increase the number of modification of loans. A completed permanent loan modification can be defined as a test loan modification that is successfully transformed into an ongoing modification.

Though more than 650,000 people were granted trial mortgage modifications, only a handful of people were granted permanent modification to their loans. Many complain about the difficulty to obtain permanent loan modifications, even after they've paid for trial loans. Some even find themselves more behind on mortgage dues when they tried to get an ongoing loan modification.

The Treasury isn't releasing the amount of permanent loan modifications as of yet, and it's too early to know what percentage of them will become permanent.

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Some mortgage professionals believe that 25 to 35% of the borrowers who are currently in trial programs to qualify for permanent loan modifications that are final.

It is in dire need of a well-designed modification program. It will aid in reducing the amount of foreclosures and also permit some markets to recover. The Obama administration's plan provides incentives to mortgage companies to lower loans for borrowers with problems. First, borrowers make reduced payments as part of the trial program. To be eligible for a permanent modification the borrower must make three installments during the trial period, and also provide the hardship letter along with other documents. I believe that all you have to do is pay three times and submit some documents... this could cause more people to try to take advantage of the system.