WASHINGTON — The government set expectations sky-high earlier this year when President Barack Obama launched an effort to help up 7 to 9 million homeowners avoid foreclosure.
Now, reality is setting in. The effort, dubbed Making Home Affordable, appears on pace to make a far smaller impact on the foreclosure crisis than officials had hoped.
Mark Zandi, chief economist with Moody’s Economy.com, expects the program to help around 2 million to 3 million borrowers through modified and refinanced loans. "It’s just barely enough to quell the crisis and allow us to muddle through," he said.
Homeowners are upset that they can’t get assistance more quickly — or at all — even as lenders insist they are doing their best to handle an unprecedented surge in calls for help.
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