That is right only 5 of 1,711 permanent modifications as of Sept 1 of this year had a principal reduction! That is what I have been telling my clients, that they are being a fed a bill of goods, with all these companies advertising how they are doing principal reductions! Here is quote from a front page article on Huffington Post about how the Obama plan has completed failed!
Only five of the 1,711 permanent modifications as of Sept. 1 involved a principal reduction — in fact, most homeowners with a permanent fix ended up owing even more on their mortgage than they did before the modification.
For those who were already “underwater” on their mortgages, meaning they owed more on their mortgage than the house is worth, the move pushed them even further below the surface.
A recent Fed study confirmed that the Obama administration’s plan could actually make matters worse for taxpayers when it comes to helping those homeowners underwater.