Struggling homeowners find little hope in federal program

WASHINGTON — In the nearly four months since Treasury Secretary Henry Paulson challenged mortgage lenders to modify distressed home loans voluntarily to ease record numbers of foreclosures, it remains difficult to gauge the program's success.

McClatchy followed several homeowners as they worked with — and sometimes battled — lenders and loan collectors during the mortgage modification process, called Hope Now.

"The big question is how many real loan modifications are happening, and I don't think they know," said Kurt Eggert, a professor at the Chapman University School of Law in Orange, Calif., and a member of a Federal Reserve consumer advisory board. "How can you say you are on top of the problem if you don't know how broadly the 'best solution' is being applied?"

McClatchy also closely followed another borrower, in this case without revealing to the lender that a reporter was watching.

If you would like to read this entire story, please visit: http://paradigmshiftpr.com/media/placements/strugglinghomeowner.htm