FORECLOSURES

Loan Modifications Don't Bring Relief

It doesn’t seem like the government’s mortgage-relief program is working. Data released from the Treasury Department show that the number of defaults on mortgages obtained through Obama’s home loan-modification program had almost doubled in March. The department recorded 2,879 defaults since the government program was implemented in the fall, up from 1,499 in February and 1,005 in January. “The current model for modifications doesn’t necessarily produce sustainable results,” said one lending expert. The Treasury Department is consequently focusing reducing principle balances and allowing under-water homeowners to sell their houses for less than they owe.