The mortgage modification program of the Obama administration is on a progressive path as a number of homeowners will receive permanently reduced monthly payments in February increasing by 45% to 168,708.

About 91,483 three-month trial modifications have been given a green signal by the companies servicing the mortgages. The Treasury Department shared that they were waiting for getting accepted by the borrowers. As of now, only 15% of homeowners who have started trial modifications have had them made permanent.

Though, 1 million borrowers have had their payments decreased under the federal program and about 500,000 have passed the required three-month period and they still were unable to receive a permanent loan modification.

Such borrowers find themselves standing at a turning point while mortgage lenders review their applications.

Faith Schwartz, Executive Director of Hope Now said, "I am optimistic you will see transitions to [non-government] solutions. [But] you can't avoid foreclosures, so you will see those as well".

Mike Heid, Co-President of Wells Fargo Home Mortgage shared that the Government plan will leave no stone unturned to keep people in their homes, but they are using every tool available to help prevent foreclosures.