A survey of 53 California mortgage counselors found all of them citing examples of loan servicers losing documents and requesting they be sent again.
Nearly 60 percent say their clients have lost their homes in the middle of negotiations for modifications. The California reinvestment program conducted the survey and says little has improved in the two years since the survey started.
"The administration made several mistakes when they set up their program. One was that they made it voluntary. So that meant that servicers could just pretend they were going to do things," says Alan Fisher from the California Reinvestment Coalition.
Under the president's program 350,000 homeowners have received permanent modifications, but 430,000 have been kicked out of the program.