And therein is a central problem with many of the homeownership preservation programs, according to Cecala. Much of the assistance, even that provided by IndyMac, does not cover loans that have been bundled together and sold to investors. Cecala said approximately 80 percent of subprime loans are securitized as are nearly 75 percent of the "no income verification" loans.
"Unless you come with something to deal with those loans and get investors to cooperate, you are not going to find any solutions," he said.
In other words, many of the bank programs cannot actually help homeowners in trouble. According to Cecala, the hope is that with all these plans being launched, perhaps they will start to make a dent in the growing foreclosure crisis in the country.
With reports from ABC News' Zunaira Zaki.
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