Money | mortgage modification Modified Mortgages May Do More Harm Than Good Critics say they hurt homeowners by merely delaying foreclosure By Caroline Miller Posted Jan 2, 2010 7:19 AM CST Copied In this Feb. 23, 2009 file photo, a home is seen in San Antonio, facing imminent foreclosure without assistance. (AP Photo/Eric Gay, file) The Obama program to rescue homeowners by modifying their mortgages comes under fire in the New York Times, where real estate experts say it has actually hurt rather than helped delinquent borrowers and impeded the country's economic recovery. Critics say that by raising false hopes in those who can't afford their homes and delaying foreclosure, it has wasted money they could have spent moving into cheaper rentals and tarnished their credit records. It has also lengthened the financial crisis by postponing the inevitable reckoning at banks, which need to tally their losses and move on. “We have simply slowed the foreclosure pipeline, with people staying in houses they are ultimately not going to be able to afford anyway,” a hedge-fund mortgage expert tells the Times. Read These Next Noem, Pritzker clash after agents shoot woman in Chicago. Mark Sanchez hospitalized after stabbing. A Delta flight got wild with an allegedly unruly passenger. A naughty rabbit kicked off the 51st season of Saturday Night Live. Report an error