Slow go on modifications

Almost a million households have received some relief through the government's foreclosure prevention program (otherwise known as the Home Affordable Modification Program, or HAMP). That's good news, but most of the relief has come through three-month trial modifications. Making them permanent is something else. The chart below (courtesy of The Atlantic) shows how many modifications have been made permanent as the total portion of the mortgage holders eligible. Not so hot, huh?

For trial modifications to be made permanent, the borrower must make three consecutive monthly mortgage payments and complete the documentation (sometimes paperwork becomes a major hassle). As of Jan. 31, about 116,000 borrowers had permanent fixes, up 75 percent from a month earlier. Another 60,000 trial modifications have been canceled. Expect more to follow - just too many mortgages out there that are way beyond the means of the folks who are stuck with them. Local angle: The L.A.-OC area accounted for 5.8 percent of all modifications, reports the LAT, trailing only NY's 6.1 percent.