Due to the Making Home Affordable Program there has been more than 360,000 modifications in August and up from 235,000 in July.

Bank of America and Wells Fargo has been one of the worst performers in the program.

Bank of America has increased its efforts into the program. They have increased the number of modifications started to 59,891 which is more than double the total from July.

Steve Bailey, of Bank of America home retention strategies executive said in an interview yesterday, "A lot of our momentum pickup is working with those customers we had already made offers on, making sure they were aware of the offer and converting those offers into trial starts."

Loans under HAMP that are at least 60 days past due, in foreclosure or bankruptcy, and originated prior to 2009 are eligible for the loan modification. The property must be owner occupied and conform to Fannie Mae and Freddie Mac loan limits which can be as high as $729,750 in some areas.

Last month Wells Fargo increased its modification rate from 6 percent to 11 percent. JPMorgan Chase & Co and Citigroup Inc continue to stay in the lead with 25 percent loans being modified.

"The servicers are still besieged with volume," said David Sisko, the head of default management services for Deloitte & Touche LLP. "A lot of these loans shouldn't have been made in the first place. The issue really comes down to how many are going to be successful."

According to the program banks that receive federal aid form the Treasury's Troubled Asset Relief Program also known as TARP as well as mortgage-finance companies Fannie Mae and Freddie Mac are required to lower monthly payments for borrowers at risk of default.

In February, President Barack Obama announced the programs. In April the final criteria for the modifications on loans owned by Fannie Mae and Freddie Mac were released. In June specific guidelines for there investors were released. Loans backed by the Federal Housing Administration were later given new details from the treasury.