The U.S. Treasury has ordered a review of all mortgage modification trials set to expire on or before Jan. 31, 2010, as part of the Obama Administration’s efforts to accelerate permanent mortgage relief and rescue more borrowers from foreclosure. This is according to a recently published article.
Administrators of the government’s Home Affordable Modification Program, or HAMP, posted the announcement on its website alerting servicers that they need to “reach out to borrowers.”
“Treasury has been working with servicers to ensure they reach out to borrowers in active trial modifications, collect all necessary documentation from borrowers, make eligibility determinations in a timely manner, and convert eligible borrowers into permanent HAMP modifications,” administrators said in a statement.
Mortgage servicers “may not cancel an active HAMP trial modification” during this period “for any reason other than failure to meet the HAMP property eligibility requirements,” according to the HAMP administrative order.
During the review period, the lenders will need to contact the borrowers to inform that that they risk losing eligibility because they have not made the required payment, have not submitted all the required documentation, or both.
This hard stance seems to be necessary, because according to the latest HAMP progress report, only 31,382 modified mortgages have been converted to permanent status, out of 728,000 trials underway. There have even been instances where the lenders proceeded through the foreclosure process and took the home back from the borrowers while they were going through the modification process.
My suggestion: do not just accept what the banks are offering you during the modification process. Although the government is making a big show of it, the banks do not have your best interest at heart. I have a group that I refer my loan modifications to that would be happy to see if they can intervene to get you the best deal. Often times, the homeowner will benefit financially by using the company to assist them.
even if you have been turned down by your bank previously, there is a chance that they can help you get the modification. Obviously each individual situation is going to vary, but since this is a no-upfront fee loan modification program, you have nothing to lose by just speaking with them. Contact me at 219-695-0369 or email scott@nwiloanguy.com to see if you may qualify.
Scott
Your first choice for FHA and VA and USDA loans in Indiana.
