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The Battle in Loan Modification October 13, 2009

Posted by John Watch in News Feed.
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Since the beginning of the year, the Making Home Affordable Program and programs alike have been met with both progressive support and glaring criticism. Supporters believe that the loan-mod programs are ebbing the tide of mounting foreclosures, while critics question the success rate and amount of effort pur forth by banks in these programs. What is certain is that Mortgage Assistance Programs are vital to a recovery in the economy and the housing market. Real estate is Cylclical, Seasonal and Emotional.

 An example of promise is the recent news of the HAMP program achieving 500,000 loan-mods ahead of schedule. Increased pressure has forced banks to speedily follow through with loan-mods with the Administration issuing progress reports periodically. Also, news of banks getting better at processing foreclosures is the silver lining in an otherwise dark cloud.

However, criticism about these programs is mounting; some banks are far behind on the amount of mortgage relief being provided while some borrowers face default even after mortgage assistance. Slow turnaround of paperwork by banks is one of the criticisms about these programs.

With foreclosures mounting and unemployment on the rise, the final outcome on these programs is yet to be seen.

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1. Charles and Sylvia Barr - November 26, 2009

My husband was laid off for 4 months and we got behind in our 1,700 house payment, the bank would not give us a loan modification, all they would do is increase our payment to 2,600, that is a payment and a half, we cannot afford this, so we reapplied for a home mod, as of yet it has been 3 months and we’ve heard nothing. this is our 4th attempt at a loan mod, we have been denied because of stupid reasons, 1st reason was, they said we did not live in our home, that it was not our primary residence, well we do live in our home and have proven that to them, 2nd reason was, they said we didn’t get our information forms filled out completely, nobody notified us that more information was needed. 3r reason was, they said my husband made too much money, which he doesn’t. 4th reason again, they said our mailing address was not the same as the property address, someone at the bank put our insurance company address in the system as our home address, and we cannot get that changed permanently, I’ve faxed our untility bills, our tax receipt, etc, they changed it for awhile and now it is starting all over again. I think they put the old info bank into the system so they won’t have to do a loan mod. Fifth Third Bank has set us up to fail. We can afford our home, at the regualar payment of 1,700 but not the 2,600. the banks are not helping people like us it is a Joke! it shouldn’t take 3 months to find out you are declined. I will have to pay an attorney to take care of this if we are denied again. tax payers are paying back this money that was given to banks to help people like us, and they are not helping the situation at all. WHERE IS THE MONEY GOING! AND WHO IS CHECKING ON THE BANKS TO MAKE SURE THEY DOE RIGHT?


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