FOX 5 Money: Mortgage Help

Keeping up to 9 million Americans from losing their homes. That's the objective of the making home affordable program.

On Thursday, Treasury Secretary Tim Geithner and Housing Secretary Shaun Donovan said 58,000 homeowners have been able to get through the system so far.

Warren Rohn is one of them. A trucker from California, Rohn had to shut his company when business fell off in November. He fell behind on mortgage payments -- then his servicer told him about the Making Home Affordable Program. Rohn was able to modify his loan with a 2 percent interest rate for five years.

"This program saved my bacon," said Rohn. "Losing my trucking business was tough enough, but I'm not sure what I would have done if I lost my home."

The Making Home Affordable Program was rolled out in February. The Treasury Department provided guidelines to loan servicers in March.

Homeowners can qualify for a modification if their mortgage-related debt (loan payments, taxes, insurance and homeowners association dues) is more than 31 percent of their pay before taxes. They must owe less than $729,000, and live in the home.

Recently, the Treasury added components to allow homeowners with second loans to qualify too. There is also a provision to help people who owe more than their homes are worth to refinance to a better interest rate. Usually borrowers need at least 20 percent equity in their homes to get a re-fi.

It's a lot to work through, but Treasury Secretary Geithner says the program is seeing slow but steady success.

"People want to see progress quickly, but were seeing a lot of progress in a very short period of time, " Geithner said.

Critics would say that less than 1 percent of the target isn't much progress at all. "It's not working, from what I can see," said realtor Konnie McKee. "I have not, literally, not talked to one person who has had a successful modification with their loan."

McKee deals with foreclosures and short sales. Clients come to her, when the loan workouts don't work. A hallmark of the Making Home Affordable program announced in February is the idea that borrowers no longer need to be delinquent on their loans before their servicers would talk to them about a modification.

McKee says her clients haven't been able to get help. She even called her own lender to get the story.

"We were told, out of the gate, without any further inquiry that we were not qualified because we were not behind," she said.

We asked Secretary Donovan about that problem Thursday. Donovan responded: "It is wrong, and in fact, servicers need to understand and we're getting the word out, that you actually can have additional incentives if you modify before you are 60 days delinquent."

That's the loophole. There is a one-time financial incentive of $1,500 for each loan a servicer agrees to modify before it is delinquent. But, a HUD spokesperson confirmed, there are no requirements for the servicers to do so. Some lenders may also have agreements with investors that prohibit modifications. That means some families may still end up in financial ruin before they can get help.