There's a fine line between encouraging loan modifications and encouraging people to try to get a deal from their lender. The Obama Administration's foreclosure prevention plan requires borrowers to be at risk of "imminent default" to qualify for a loan modification. At the same time, the government wants to encourage borrowers and lenders not to wait until people are in foreclosure to address the problem, so borrowers can be current on their mortgage and still be eligible to have their loan modified. In those cases, the mortgage servicer has to document when someone will no longer be able to make their payment.
With lenders overwhelmed by a record number of loan defaults, the focus has been on the people who have stopped making their payments. If lenders made it easier for people who were in trouble, but not yet in default, there would probably be more successful loan modifications. Of course, that could also encourage people who aren't really in trouble to try to get a better deal.
Comments
I have a loan with Amtrust bank. It seems that the bank wants to somehow avoid entertaining any modifications and is bluffing the government about that to continue enjoying free stimulus money. I have submitted 2 packages and have been declined both the times, once saying that my income is not sufficient and have an option to choose to short sale. The other time, I have been told that my income points out that I should not have any financial difficulty and does not qualify for the modification. I however checked the fannie mae site and do qualify for loan modifications. It seems that AMTRUST BANK does not want to modify the loans. I am however current on my mortgage still. Don;t know if that is impacting my chance of geting mods.
I have been waiting for over four months with little success. I am current on my house payments but with te State of California cuttiing salaries-(three days off without pay) it makes it hard. Wells Fargo is giving me the run around and is resisiting providing any relief. We are callig them every day and submitting them new financial information every month.
The banks arre dragging their feet. They don't care if you get a loan mod. the banks will sell the homes to there investors and friends and real estate will eventally start bouncing back and the rich will own more real estate. I have been waiting on a loan mod since last year and it is the biggest joke. The banks got the bailout and they are treating it like it is their money and they are doing what they like. They make their own rules. Everyone should write or call the Obama website and tell them what is really going on. The banks tell the govt one thing but the homeowners dealing with this mess should speak up and be heard call your local tv or talk radio Obama does listen to tv and radio and it needs to step in and demand the banks not to pick and choose make all homes affordable,
Its very important for people to get the help that they need on their mortgage and get a loan modification. There are alot of loss mitigation firms out there than can help homeowners prevent and avoid foreclosure and save their homes. I think the best thing to do is always have an attorney represent you, especially if you are facing foreclosure. Looking for a good loan modification company can be a tough, but theres some good ones out there that can help! The fact that there has been over 1.2 million foreclosures in the first half of this year and only ~256,000 mods completed through Making Home Affordable over the same duration really points to the fact that there simply isn't enough being done by lenders to modify loans, unless there is an attorney involved. Homeowners are always getting the run-around (heck, even Maxine Waters went through a horrific ordeal trying to help her constiuents modify their mortgages, and shes a Congresswoman!), and so many of them get bad modifications when they negotiate their own modifications; the re-default rate for homeowners that get these bad mods is outrageous.
I JUST WANTED TO COMMENT THAT THE MODIFICATION PROGRAM IS ANOTHER FALSE HOPE. I AM STILL AT MY JOB OF 25 YEARS AND NOT IN DANGER OF LOSING IT. I HAVE FILLED OUT 3 MODIFICATION PACKAGES FOR AM TRUST BANK. MY LOAN IS FANNIE MAE AND MY HOUSE PAYMENT IS $1600.00 A MONTH- ON A $138.000 HOME. IT HAS A PMI ATTACHED THAT IS $500.00 A MONTH THAT I WAS TOLD WOULD FALL OFF 6 MONTHS TO 1 YEAR... . THREE YEARS HAVE COME AND GONE. AM TRUST BANK IN OHIO SAYS I DONT QUALIFY EVEN THOUGH FANNIE MAE SAYS I DO, THE PRESIDENTS MODIFICATION WEBSITE IDICATED I DO AS WELL. THE LADY AT FANNIE MAE TOLD ME ITS ULTIMATELY UP TO THE BANK TO MODIFY! WTF!
Wells Fargo is dragging it feet. i have been waiting for over four months with little success. I am current on my house payments but with te State of California cuttiing salaries-(three days off without pay) it makes it hard. Wells Fargo is giving me the run around and is resisiting providing any relief. We are callig them every day and submitting them new financial information every month.
Sandy,
It's hard to say how successful your loan modification will be. As you noted, it not being a Fannie/Freddie loan does put you at a disadvantage, but the calculation the lender/investors will make is whether it makes sense to keep you in your home versus the cost of foreclosure and the resale values in your neighborhood. The loan servicers say their biggest obstacles to loan modifications is that borrowers aren't responsive. What has been your experience?
My loan is with Suntrust, but the investor is Bank of America. NOT Fannie or Freddie, who are the only investors participating in government plans. What are my chances of a successful modification?
Al - The following are participating in the mortgage modification program.
CitiMortgage
Wells Fargo Bank
GMAC Mortgage
Saxon Mortgage Services
Chase Home Finance
Ocwen Financial Corporation
Bank of America
Countrywide Home Loans Servicing
Home Loan Services
Wilshire Credit Corporation
Green Tree servicing
Carrington Mortgage Services
Aurora Loan Services
Nationstar mortgage
Residential Credit Solutions
CCO Mortgage
RG Mortgage Corporation
First Federal Savings and Loan
Wescom Central Credit Union
Citizens First Wholesale Mortgage Company
Technology Credit Union
Citizens First Wholesale Mortgage Company
Technology Credit Union
National City Bank
Wachovia Mortgage
Bayview Loan Servicing
Lake National Bank
IBM Southeast Employees’ Federal Credit Union
Who are the 25 co.s participating in the loan mod program?? I am still current on payments but am in urgent need of help. Plaese can you help me and my family w/some solid info?
Thanks Al