This is a rush transcript from "On the Record," August 27, 2009. This copy may not be in its final form and may be updated.

GRETA VAN SUSTEREN, FOX NEWS HOST: And foreclosure -- millions of people across America are struggling to avoid it. Some are turning to loan modifications in an effort to save their homes. We spoke to one of them in Virginia.


VAN SUSTEREN: You brought this house 10 years ago.


VAN SUSTEREN: What did you pay?

FLEMING: It was then $275,000, but we paid $30,000 for home improvements, so it ran over to roughly $300,000.

VAN SUSTEREN: At the time, what was your mortgage payment about?

FLEMING: About only $1,300. And I put a 25 percent down to avoid what they call private mortgage insurance.

VAN SUSTEREN: Was that a fixed interest rate, do you remember, back then?

FLEMING: It was fixed at that time. And then unfortunately we went to of refinance or an adjustable rate mortgage. So in 2006, I tried to go back to a fixed rate, but we fell into -- unfortunately we were misled by a company that gave us an ARM instead of a fixed rate.

VAN SUSTEREN: What are you paying now a month for this home?

FLEMING: It is roughly $3,200 and is at 7.5 percent, and it still could escalate.

VAN SUSTEREN: Have you talked to the bank about renegotiating that?

FLEMING: I have talked to Wachovia, and they said no because with the drastic fall in prices, this economy is going to spiral.

VAN SUSTEREN: What is the value of the house now as you understand it?

FLEMING: My last estimate from loan appraisal is about is roughly $400,000 max, when in March, 2006, World's Savings Bank had it appraised at $650,000.

VAN SUSTEREN: What do you owe?

FLEMING: Close to $400,000.

VAN SUSTEREN: So you are almost even, though.

FLEMING: Exactly.

VAN SUSTEREN: You almost owe what the house is worth.

FLEMING: That's right.

VAN SUSTEREN: In light of the fact that you have this mortgage payment now $3,000, and what is the income into this house now?

FLEMING: My income from Social Security? It is $4,000.

VAN SUSTEREN: You are living -- if the house cost $3000 to carry the mortgage, you make $4000, you are living on $1000, and your turn to figure out a way to make this more economical and better for your family.

You are now trying to do something with your mortgage. What are you trying to do with it?

FLEMING: Well, it was the government's home affordability stabilization plan that FDIC has done for many homes. They will take out 31 percent of someone's verifiable income, so roughly 30 percent $4,000 would be $1,200. I could certainly manage with that.

VAN SUSTEREN: When did you make the first application to do that, to get back and take a benefit, take advantage of that?

FLEMING: More than six months ago, ma'am.

GRETA VAN SUSTEREN, FOX NEWS HOST: We spoke to Alex, and he said he applied it six months ago for this loan modification. He has made all his mortgage payments. So maybe the bank is not in a big hurry to do this modification for him.

But it was such a rush, rush, rush to get this stimulus done. They did that a couple of days. Why isn't there a rush by the Treasury and the banks to actually do loan modification?

BILL BURNETT, VIRGINIA ASSOCIATION OF MORTGAGE BROKERS: It is very slow. I have gotten some done it the three or four month period, which I would say is about average. Some do go as long as six months.

And Alex's personal case, it's, in my opinion, incompetence, total lack of staff, total unorganization. I mean -- I know he submitted the same paperwork up to five or six times, the same exact paperwork over and over again.

VAN SUSTEREN: Why can't it get done? If he did this six months ago, what is the inertia. Why won't the banks do this or the treasury? What is the holdup?

BURNETT: In his particular case was outlander. They were waiting for the federal government to come out and make some difference changes, some things that might be advantageous for them. and so they were holding everyone off.

If there was ever a loan modification case, this is a real hardship. This is a fellow on retirement. He is using up all of his asset base. He has made all of his payments on time. He has met all the obligations. This is the perfect case of getting it done quickly.


VAN SUSTEREN: For more information on refinancing and modification, go to

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