Posted on: 25th Jan, 2010 01:45 pm
according to a us treasury guideline that was issued during december, lenders who are working with borrowers under the hamp program (loan modifications) are required to review all trial modifications by january 31. in that review, the lenders are to determine if borrowers are meeting the stipulations concerning their workout. if borrowers do not meet the requirements, they are to be given 30 days in which to comply.
ostensibly, the backlog of borrowers who are in the trial modifications would be broken up in the process. however, thousands of homeowners are in the program, and have shown their desire and ability to comply with payment arrangements as stipulated by the lenders. thousands of others have been waiting for as long as 8 months to hear from their lenders to let them know if they'll qualify for a permanent modification, thereby allowing them to save their homes from foreclosure.
what is at risk now is that for lack of documentation, several thousands of homeowners now face imminent foreclosure. lenders routinely lose documents, according to borrowers; though of course, the lenders maintain that their borrowers are simply not providing the required information.
treasury officials plan to issue new directives this week to enable the loan servicers in attempting to get these trial modifications to permanent status. unfortunately, few of those in need of permanent modification have thus far achieved that status. some 66,500 people have received permanent adjustments, but there are almost 800,000 others currently in their trial periods.
what is abundantly clear is that the lenders and servicers have not reacted efficiently in this effort to clear up the backlog of borrowers whose loans are no longer affordable. the treasury department is under fire to make the program more user-friendly, so that borrowers can track the goings-on and that their loans come to swifter resolution; thus avoiding the possibility of foreclosure.
ostensibly, the backlog of borrowers who are in the trial modifications would be broken up in the process. however, thousands of homeowners are in the program, and have shown their desire and ability to comply with payment arrangements as stipulated by the lenders. thousands of others have been waiting for as long as 8 months to hear from their lenders to let them know if they'll qualify for a permanent modification, thereby allowing them to save their homes from foreclosure.
what is at risk now is that for lack of documentation, several thousands of homeowners now face imminent foreclosure. lenders routinely lose documents, according to borrowers; though of course, the lenders maintain that their borrowers are simply not providing the required information.
treasury officials plan to issue new directives this week to enable the loan servicers in attempting to get these trial modifications to permanent status. unfortunately, few of those in need of permanent modification have thus far achieved that status. some 66,500 people have received permanent adjustments, but there are almost 800,000 others currently in their trial periods.
what is abundantly clear is that the lenders and servicers have not reacted efficiently in this effort to clear up the backlog of borrowers whose loans are no longer affordable. the treasury department is under fire to make the program more user-friendly, so that borrowers can track the goings-on and that their loans come to swifter resolution; thus avoiding the possibility of foreclosure.
I agree with you that if proper documentation is not available, the homeowners will be at a risk of losing their properties. It is true that the lenders quite often lose the documents. In the recent times, the courts have even waived off the mortgage because the lenders could not provide proper documents for the loan (Check out - http://www.mortgagefit.com/foreclosure/courts-waiveoff-loan.html ).
It would have been better if the lenders, servicers and the Treasury Department had worked together and tried to make HAMP successful right from the beginning. This would have helped a large number of people in a far better way.
It would have been better if the lenders, servicers and the Treasury Department had worked together and tried to make HAMP successful right from the beginning. This would have helped a large number of people in a far better way.
GOOD THOUGHT SARA
presumably, sara, they have been working together and of course, they had to have begun that way. i am of the opinion that lenders/servicers, etc. were woefully unprepared to deal with this mortgage crisis.
of course, the issues we're all facing came up quickly on us, despite some early warning signs. lenders were folding left and right, and suddenly. staffing was inadequate not as a result of conscious decisions, but because by the time the companies reacted, they were already inundated with severe problems - issues that had to be addressed immediately but could not be.
by the time everyone realized that there were serious problems that had to be dealt with posthaste, it was too late. finding qualified people to staff the loss mitigation, collections, and modification departments was, consequently, an arduous task.
and we're still not where we need to be in this crisis.
of course, the issues we're all facing came up quickly on us, despite some early warning signs. lenders were folding left and right, and suddenly. staffing was inadequate not as a result of conscious decisions, but because by the time the companies reacted, they were already inundated with severe problems - issues that had to be addressed immediately but could not be.
by the time everyone realized that there were serious problems that had to be dealt with posthaste, it was too late. finding qualified people to staff the loss mitigation, collections, and modification departments was, consequently, an arduous task.
and we're still not where we need to be in this crisis.
Hi George,
It's evident that the Home Affordable Modification Program has not been as successful as people had expected it to be. The main reason behind this seems to be the reluctance as well as unpreparedness on the part of the lenders in dealing with this kind of situation. With so many foreclosures and an increasing number of defaulting borrowers, the lenders are perplexed about how they should cope with such situation. There are many people who are yet to get a permanent modification plan and it's uncertain when they would get one.
However, things have recently started showing some signs of hope and the lenders are showing their positive intentions regarding offering modification help to the distresses borrowers. We can only hope for the best and wait and see what action the Govt. takes to improve this situation.
It's evident that the Home Affordable Modification Program has not been as successful as people had expected it to be. The main reason behind this seems to be the reluctance as well as unpreparedness on the part of the lenders in dealing with this kind of situation. With so many foreclosures and an increasing number of defaulting borrowers, the lenders are perplexed about how they should cope with such situation. There are many people who are yet to get a permanent modification plan and it's uncertain when they would get one.
However, things have recently started showing some signs of hope and the lenders are showing their positive intentions regarding offering modification help to the distresses borrowers. We can only hope for the best and wait and see what action the Govt. takes to improve this situation.