New wave of foreclosures by end of 2010 is feared

About 4 million U.S. homeowners are 90 days or more delinquent on their loans or in
foreclosure proceedings, Moody's Economy.com says. A federal loan modification program
is helping a relative few.

Reporting from Washington - Experts fear that a new wave of foreclosures will hit this
year as prolonged unemployment makes it difficult for millions of homeowners to pay
their mortgages -- and many of them aren't likely to get much help from a federal program
aimed at keeping them in their houses.

Banks participating in the Home Affordable Modification Program, announced a year ago this
week by President Obama, have been slow to turn temporarily reduced mortgage payments
into permanent ones.

"The overarching sense is that the mortgage modification process has not worked that
well," said Bert Ely, an independent banking consultant.

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