Loan Modification Slow, Tedious for Some

ORANGE PARK, Fla. -- Judy Risner applied for a mortgage loan modification the day the program was announced.

"It's amazing I'm not in foreclosure. I would be behind if not for my kids," said Risner.

The Orange Park woman said the government's Loan Modification Program so far has been a joke. 

"I started on March 16, when I heard it on the news, I went on line and faxed it to them," said Risner.

Risner said she has had to file three separate applications because one reportedly was lost, and the other was closed in error.

"I faxed the first one and the others were sent overnight. One cost me almost $30 to overnight it," said Risner.

She has kept a diary of every call, every conversation. Risner said it is not an issue of eligibility, about 70 percent of her disability goes to paying the mortgage.

She said the modification would lower that expense.

"If they go to 31 percent of my income then I will have some breathing room," said Risner.

Unfortunately after eight months of waiting and filling out applications all she can do is hope.

"So I still have my fingers crossed hoping relief is coming," said Risner.

The latest from her mortgage company is that her loan modification application is in the final stage.

Brian Sullivan, a spokesperson with the U.S. Department of HUD, said Risner's experience sounds highly unusual.

Sullivan added that the program was hindered because the lenders did not have the infrastructure for loan modifications and then there were capacity issues.  He said all that has changed.

Sullivan says if someone is making a loan modification and is having problems they should call 1-888-995-HOPE.

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