NEW YORK (CNNMoney.com) — Only about 4% of troubled borrowers have received long-term help under the Obama administration’s foreclosure prevention program, Treasury officials said Thursday.

A nearly equal number of trial modifications have been denied permanent assistance, the report showed. The reasons include not making monthly payments on time, not submitting all the necessary paperwork and not qualifying for reasons such as insufficient income.

The report, the first comprehensive tally of permanent modifications made, shows that loan servicers have converted 31,382 people from trial adjustments to long-term assistance as of Nov. 30.

But 30,650 people in trial modifications have been denied, according to Treasury officials.

The dearth of permanent modifications has fueled concerns that the $75 billion plan will fall far short of its goal to help up to 4 million delinquent homeowners.

The number of troubled borrowers currently in trial modifications rose to 697,026, up from 650,994, a month earlier.

“Our focus now is on working with servicers, borrowers and organizations to get as many of those eligible homeowners as possible into permanent modifications,” said Phyllis Caldwell, chief of Treasury’s Homeownership Preservation Office.

Banks and the administration have come under fire in recent months as delinquent borrowers languish in trial modifications. Lawmakers lambasted servicers and Obama officials at a congressional hearing Tuesday for not doing more to help homeowners facing foreclosure.

Last week, the administration announced it was ramping up its oversight of loan servicers’ conversion operations, sending in SWAT teams to break up any logjams, and requiring banks to submit updates twice daily on their efforts. Administration officials called financial executives to Washington this week to urge them to quicken the conversion pace.

“We’re not satisfied yet with how this program is unfolding,” said Treasury Assistant Secretary for Financial Stability Herbert Allison at the House Financial Services hearing. “The servicers have a lot of work to do, and we’re holding them accountable for their performance.”

While the permanent modification figures are disappointing, there is still time for the Obama administration to turn the program around, said Alan White, a law professor at Valparaiso University. But he would like to see a big increase in the numbers in the next month or two.

“Treasury is aware there is a problem,” White said. “We’ll see if they are able to do something about it.”

Thursday’s announcement came hours after a report showed the foreclosure crisis might be mitigating somewhat. Foreclosure filings fell by 8% in November, the fourth consecutive month of declines, according to RealtyTrac, an online marketer of foreclosed properties.

The paperwork
Under the president’s plan, delinquent borrowers are put into trial modifications for several months to make sure they can handle the new payments and to give them time to submit their financial paperwork. Once the modification becomes permanent, servicers, investors and homeowners are eligible to receive thousands of dollars in incentive payments.

If they qualify for a long-term modification, borrowers can keep making the lower payments for five years, after which time the interest rate is set at the rate at the time of the adjustment, or about 5% today. Borrowers in modifications are saving an average of more than $550 a month.

Loan servicers say they are having trouble getting the necessary documents from borrowers.

Some 375,000 people should be eligible to receive long-term relief by year’s end. But only one-third of homeowners who have made at least three trial payments have submitted all the needed forms, Treasury officials have said. Some 20% have not submitted any paperwork. Banks and government agencies have hired outside companies to knock on borrowers’ doors to assist them with completing the paperwork.

Homeowners, however, maintain that their financial institutions are constantly losing the paperwork.

Donna Belanus, who just made her fourth trial payment to Wells Fargo, has repeatedly faxed her financial information and hardship letter to her loan servicer after being told her file was incomplete. The Elkhorn, Wis., resident was told a month ago that she’d receive a decision soon, but she’s still waiting.

“If you give them everything, they should have an answer,” said Belanus, who saw her monthly payments drop nearly $350 under the trial modification. “I don’t want to lose my home because they take too long. It’s uneasy not knowing what’s going to happen.”

A Wells Fargo spokesman said Belanus’ file is complete and is in the review process. She should be notified of a decision within 45 days.

Once their files are complete, borrowers may be denied long-term help if they don’t meet the program’s criteria.

At JPMorgan Chase (JPM, Fortune 500), for instance, some 29% of borrowers offered trial plans did not make the required payments and are not eligible for permanent modifications, the bank reported. Another 51% have made the three required payments but have not provided all the needed paperwork.

The bank has launched a program to call borrowers 36 times, reach out by mail 15 times and make at least two home visits to retrieve the required forms.

About 20% have met all the criteria and the majority are expected to be put in long-term modifications soon, the bank said.

So far, some 4,302 borrowers at Chase have received permanent modifications, while another 16,131 have been approved for long-term help. The servicer has offered trial modifications to 199,033 borrowers.

“We continue to work very hard to convert customers from a trial modification to a permanent modification that lowers their monthly payment, but it has been a struggle,” said Charlie Scharf, head of retail financial services at Chase.

NEW YORK (CNNMoney.com) — Only about 4% of troubled borrowers have received long-term help under the Obama administration’s foreclosure prevention program, Treasury officials said Thursday.

A nearly equal number of trial modifications have been denied permanent assistance, the report showed. The reasons include not making monthly payments on time, not submitting all the necessary paperwork and not qualifying for reasons such as insufficient income.

The report, the first comprehensive tally of permanent modifications made, shows that loan servicers have converted 31,382 people from trial adjustments to long-term assistance as of Nov. 30.

But 30,650 people in trial modifications have been denied, according to Treasury officials.

The dearth of permanent modifications has fueled concerns that the $75 billion plan will fall far short of its goal to help up to 4 million delinquent homeowners.

The number of troubled borrowers currently in trial modifications rose to 697,026, up from 650,994, a month earlier.

“Our focus now is on working with servicers, borrowers and organizations to get as many of those eligible homeowners as possible into permanent modifications,” said Phyllis Caldwell, chief of Treasury’s Homeownership Preservation Office.

Banks and the administration have come under fire in recent months as delinquent borrowers languish in trial modifications. Lawmakers lambasted servicers and Obama officials at a congressional hearing Tuesday for not doing more to help homeowners facing foreclosure.

Last week, the administration announced it was ramping up its oversight of loan servicers’ conversion operations, sending in SWAT teams to break up any logjams, and requiring banks to submit updates twice daily on their efforts. Administration officials called financial executives to Washington this week to urge them to quicken the conversion pace.

“We’re not satisfied yet with how this program is unfolding,” said Treasury Assistant Secretary for Financial Stability Herbert Allison at the House Financial Services hearing. “The servicers have a lot of work to do, and we’re holding them accountable for their performance.”

While the permanent modification figures are disappointing, there is still time for the Obama administration to turn the program around, said Alan White, a law professor at Valparaiso University. But he would like to see a big increase in the numbers in the next month or two.

“Treasury is aware there is a problem,” White said. “We’ll see if they are able to do something about it.”

Thursday’s announcement came hours after a report showed the foreclosure crisis might be mitigating somewhat. Foreclosure filings fell by 8% in November, the fourth consecutive month of declines, according to RealtyTrac, an online marketer of foreclosed properties.

The paperwork
Under the president’s plan, delinquent borrowers are put into trial modifications for several months to make sure they can handle the new payments and to give them time to submit their financial paperwork. Once the modification becomes permanent, servicers, investors and homeowners are eligible to receive thousands of dollars in incentive payments.

If they qualify for a long-term modification, borrowers can keep making the lower payments for five years, after which time the interest rate is set at the rate at the time of the adjustment, or about 5% today. Borrowers in modifications are saving an average of more than $550 a month.

Loan servicers say they are having trouble getting the necessary documents from borrowers.

Some 375,000 people should be eligible to receive long-term relief by year’s end. But only one-third of homeowners who have made at least three trial payments have submitted all the needed forms, Treasury officials have said. Some 20% have not submitted any paperwork. Banks and government agencies have hired outside companies to knock on borrowers’ doors to assist them with completing the paperwork.

Homeowners, however, maintain that their financial institutions are constantly losing the paperwork.

Donna Belanus, who just made her fourth trial payment to Wells Fargo, has repeatedly faxed her financial information and hardship letter to her loan servicer after being told her file was incomplete. The Elkhorn, Wis., resident was told a month ago that she’d receive a decision soon, but she’s still waiting.

“If you give them everything, they should have an answer,” said Belanus, who saw her monthly payments drop nearly $350 under the trial modification. “I don’t want to lose my home because they take too long. It’s uneasy not knowing what’s going to happen.”

A Wells Fargo spokesman said Belanus’ file is complete and is in the review process. She should be notified of a decision within 45 days.

Once their files are complete, borrowers may be denied long-term help if they don’t meet the program’s criteria.

At JPMorgan Chase (JPM, Fortune 500), for instance, some 29% of borrowers offered trial plans did not make the required payments and are not eligible for permanent modifications, the bank reported. Another 51% have made the three required payments but have not provided all the needed paperwork.

The bank has launched a program to call borrowers 36 times, reach out by mail 15 times and make at least two home visits to retrieve the required forms.

About 20% have met all the criteria and the majority are expected to be put in long-term modifications soon, the bank said.

So far, some 4,302 borrowers at Chase have received permanent modifications, while another 16,131 have been approved for long-term help. The servicer has offered trial modifications to 199,033 borrowers.

“We continue to work very hard to convert customers from a trial modification to a permanent modification that lowers their monthly payment, but it has been a struggle,” said Charlie Scharf, head of retail financial services at Chase.

Utilize one of the many templates available, but PLEASE customize it to your situation according to the guidelines being shown below:

1) Tell the Lender what happened and how you arrived at this financial hardship. Lost your job? Was there a medical emergency or increased medical bills? Divorce?  Explain to your bank, lender, servicing company the linkage between your hardship issue and how you now have decreased income and/or increased debt responsibilities.  Finally, explain how the hardship translates into your struggle with making your monthly mortgage payments.

2) Explain to your bank about the timing surrounding these hardships. It is beneficial if you can demonstrate that you’ve never missed a payment and never made a late payment until you encountered these tough financial circumstances.

3) Lay out a plan that shows the bank how you intend to perform on your house payments and revolving and/or installment debt after loan modification, and how you won’t struggle financially after the successful loan modification. Create a budget and show your lender or servicer how it pays for everything…all this to demonstrate that you are taking your situation with high regard and going to work on it proactively. If you plan on making sacrifices in order to pull out of debt, such as giving up club memberships and/or foregoing family vacations, tell the bank or loan servicer this as well. You are trying to show the mortgage lender that you are committed to homeownership and will do whatever it takes to rise above your financial hardship.

The loan modification hardship letter is really the only opportunity you get to tell your side of the story and humanize it so that you’re not just looked at as an account number or a credit history. Be persuasive and compelling in your hardship letter, but don’t be negative, complain, or place blame. Outlining your hardship story, the timing of events, your good faith efforts, and your recovery plan, in concise, believable, and sympathetic language will help you write a compelling letter.

This will work for Do-It-Yourself loan modification customers and borrowers.  Please also apply this to borrowers from Countrywide, EMC Mortgage, OCWEN, and HSBC. 

$1,995: First Mortgage / $450: Second and Third Mortgage

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 or check us out at www.yourloanmodifications.com

The folks at Ferguson Financial / 1st Financial Nationwide are continuing to bring success to Homeowners in Las Vegas, Phoenix, and California…and have expanded service to 47 states nationwide.  Success Stories this month (August) are: 1) Bank of America – Countrywide; 4% for Five Years, down from 6.25% on a loan amount of $325,000, 2) a Federal Credit Union; 3% for Five Years, down from 6.5% on a loan amount of $217,000, 3) Aurora Loan Services Trial Period Plan under Making Home Affordable; 1.5%, down from 6.375%, 4) Wells Fargo Home Mortgage – able to Stop Foreclosure sale 3 times, gain acceptance into HAMP Program for rate of 2%, down from 5.75%, 5) America’s Servicing Company (ASC) – able to stop foreclosure sale 2 times, gain acceptance into 90 Day Trial Period Plan for HAMP / Making Home Affordable.

How do we it?   1) Loan Audit by an experienced Attorney, 2) Income / Expense Worksheet review and refinement, 3) Expertise dealing with Large Lenders and Credit Unions’ Loss Mitigation departments, 4) Processing Department that calls the Loss Mitigation Dept. 2-3 times a week, 5) EXPERIENCE and Case Volume!  Experience cannot be found in large quantities in the loan modification business category.  We are limited in our ability to find high quality associates ourselves!  That’s why we focus on certain geographies and Lenders where we have high success rates. 

For more information about Ferguson Financial Services / 1st Financial Nationwide, go to http://yourloanmodifications.com or call at (866) 968-9685.  We offer Loan Modification and Loan Audit services, Stop Foreclosure programs, Short Sale and Short Refinance services, and mortgage and re-financing consultation. State: Nevada.  County: Clark County. City: Las Vegas and Henderson.

Let our Bank of America Loan Modification Specialist tell you more about how we keep achieving successful loan modifications with Bank of America – Countrywide and also Stop Foreclosure in the same process.  Ferguson Financial / 1st Financial Nationwide.  www.yourloanmodifications.com  (866) 968-9685  We have offices in California, Arizona, Nevada, and Ohio and operate in 47 states throughout the U.S.

Several residents of a care home for the mentally disabled will continue enjoying excellent care, thanks to their owner’s successful loan modification with Ferguson Financial/ 1st Financial Nationwide on their America’s Servicing Company (ASC) loan.  ASC is actually Wells Fargo NA’s servicing division, and shares many of the same practices as Wells Fargo Home Mortgage when it comes to loan modifications.  Ferguson Financial was able to STOP Foreclosure sale Three (3) Times over a 4 month period, while they continued efforts to gain commitment from ASC for the modification. 

Because America’s Servicing Company services mostly sub-prime loans, however, they are more difficult to work with, as they have fewer loans owned by Freddie Mac and Fannie Mae.  The Freddie and Fannie owned loans generally qualify for the HAMP Program of the Making Home Affordable Act (MHA) more easily, and, ASC’’s loans are often owned by shadow banking  groups that own the mortgages in “mortgage pools” or “mortgage backed securities” investments.  What does this all mean?  It means that these kinds of loans are more difficult to modify, because the “Note Holder” is usually a Group of Owners that rely on the Servicer exclusively, whereas Fannie Mae and Freddie Mac are charged with fixing all of their bad loans. 

The Servicers (ASC in this case) are not motivated to reduce the interest rate OR write off the past due fees and other charges (attorney and trustee fees).  These fees are all pure profit for them…in addition to the .5% per year they charge the Note Holder of your loan. 

So…how did this ASC loan get modified?  It took 6 months, 3 re-submissions, and three times a week in follow ups and pushing by the Processing Department at Ferguson Financial / 1st Financial Nationwide.  More important, the  Legal team and Quality Control Group made sure that all documents were reviewed and expertly prepared BEFORE every single submission to ASC’s Loss Mitigation Department.  The Forensic Loan Audit performed by the attorney with the Legal Group also let ASC know that there were violations in the original loan process, which helped gain special attention by ASC’s management.  The Quality Control Group has significant expertise and experience dealing with ASC, and knows the ins and outs of extending foreclosure/trustee sales while the loan modification case is kept open for further review.  For more on this story, or other questions, call Ferguson Financial / 1st Financial Nationwide at (866) 968-9685.   www.yourloanmodifications.com