The latest reports indicate that approximately 20% of homeowners at least 60 days behind on their mortgage payments have received trial loan modifications. This figure is up from a reported 16% last month, which is moving in the right direction, but experts still say President Obama’s rescue plan hasn’t had the expected or hoped for impact on troubled homeowners.

Unfortunately, as we reported earlier, new foreclosure filings hit a record high in the third quarter. With thousands upon thousands of new foreclosures piling up, it appears as though the mortgage modification plan is failing to keep pace. Despite this, administrators claim the plan is on track to rescue up to 4 million homeowners as originally planned.

What’s to blame? Lost paperwork, incomplete paperwork, homeowners not qualifying due to too little income or too much home equity.

The continued increase in foreclosure filings seems to be contributing indirectly to low mortgage rates. Rates on some 30-year, fixed loans dipped below the 5.00% mark again within the past week, while others hover comfortably close to the coveted 5.00% mark. Idaho, in particular, was one of the top ten states for the highest rate of foreclosure filings in the third quarter, which could continue to have a positive impact on Idaho mortgage rates.

Pending home sales are also on the rise, which could help to stabilize the Idaho real estate market. The majority of states reported an increase in pending home sales for the third quarter, a trend that will continue to be fueled by the extended and expanded tax credit.

Contact one of our trusted Idaho mortgage lenders today to find out if you qualify for the extended tax credit or for more information on loan modification programs.

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