Posted on: 22nd Feb, 2010 10:13 am
on june 1, the federal government is rolling out a new plan to make it easier for borrowers suffering to obtain a permanent modification plan on their mortgages.
one of the major problems, it seems, is that lenders - in large part - have neglected to request documentation from borrowers upfront, but waited until the time came to make a determination as to whether a permanent modification could be granted - a grave mistake, as most were not granted.
it turns out that gmac has been successful in about one-third of their temporary-to-permanent transitions, which is far above most of the other servicers. chase, for example, is at about 7 per cent and bank america at about 5 per cent.
citimortgage has also been pretty successful in its endeavors to get homeowners into a modification plan, be it temporary or permanent. they share kudos with gmac.
at the same time, although these two stick out in a crowd of sickly performing lender/servicers, the success of the modification plan that was announced last year is woeful. much more needs to be done.
all we need to do is to look around at the posts on this forum in this community and see how people are suffering.
one of the major problems, it seems, is that lenders - in large part - have neglected to request documentation from borrowers upfront, but waited until the time came to make a determination as to whether a permanent modification could be granted - a grave mistake, as most were not granted.
it turns out that gmac has been successful in about one-third of their temporary-to-permanent transitions, which is far above most of the other servicers. chase, for example, is at about 7 per cent and bank america at about 5 per cent.
citimortgage has also been pretty successful in its endeavors to get homeowners into a modification plan, be it temporary or permanent. they share kudos with gmac.
at the same time, although these two stick out in a crowd of sickly performing lender/servicers, the success of the modification plan that was announced last year is woeful. much more needs to be done.
all we need to do is to look around at the posts on this forum in this community and see how people are suffering.
Hi George,
It's really a good news that the federal government is planning to roll out a new plan to make it easier for borrowers to obtain a permanent modification plan on their mortgages. I find quite a large number of posts in the forums which state that though the borrowers have successfully paid off their trial modification, they were not approved for a permanent modification. Quite a large number of people will be benefited if it becomes easier to get a permanent modification.
Thanks
It's really a good news that the federal government is planning to roll out a new plan to make it easier for borrowers to obtain a permanent modification plan on their mortgages. I find quite a large number of posts in the forums which state that though the borrowers have successfully paid off their trial modification, they were not approved for a permanent modification. Quite a large number of people will be benefited if it becomes easier to get a permanent modification.
Thanks
Yes, we do need better plans to make loan modification programs available to one and all. As I was just going through the statistics, it seems that only 66,000 homeowners out of 4 million (source: "http://www.csmonitor.com/USA/2010/0116/Federal-mortgage-modification-plan-disappointing-so-far") have qualified for the Home Affordable Mortgage Modification Program (HAMP). So, you see the figures are quite low, compared to the huge number of foreclosures we've seen in the market. Considering the fact that the number of foreclosures are expected to rise further with a large number of Option ARMs about to reset this year, the Government needs to implement strategies to help borrowers in mortgage problem modify their loans and save their homes.
With regards,
Jessica
With regards,
Jessica
Hi everyone,
As far as I remember, the Treasury did announce towards the end of last year that they were not satisfied with the way the major lending institutions responded to the Home Affordable Modification Program. They also planned to set up a team of experts to review the work done by the lenders towards offering permanent modification plans to the borrowers who successfully completed the trial modification plans.
There are a lot of complaints against the mortgage companies regarding their reluctance in offering permanent modification plans. Many people complain that the lenders keep requesting them to send their financial papers and keep losing them every time they send in the papers. There are borrowers who say they sent the lenders papers almost 6-7 times and still they get only one response from the lenders - that their request for permanent modification is being processed!!
As far as I remember, the Treasury did announce towards the end of last year that they were not satisfied with the way the major lending institutions responded to the Home Affordable Modification Program. They also planned to set up a team of experts to review the work done by the lenders towards offering permanent modification plans to the borrowers who successfully completed the trial modification plans.
There are a lot of complaints against the mortgage companies regarding their reluctance in offering permanent modification plans. Many people complain that the lenders keep requesting them to send their financial papers and keep losing them every time they send in the papers. There are borrowers who say they sent the lenders papers almost 6-7 times and still they get only one response from the lenders - that their request for permanent modification is being processed!!
i truly believe that the lenders and servicers are woefully unprepared for working with these borrowers. you'd think, that with all the folk currently out of work, that they'd make an effort to put bodies in seats who could make the overall process easier. i suppose they'd say they don't have enough chairs for all the backsides that would have to be seated.
