Could loan mods suddently get much easier?
Treasury Secretary Timothy Geithner was on The News Hour the other night and was asked about the dismal results for successful loan modifications. Apparently, there are $73 Billion in available funds and only a few hundred million have been spent on HAMP loan modifications to date. I wasn’t aware it was that bad. Pretty pathetic.
Well, things might be about to change for the better according to this article:
July 8, 2010 – Borrowers who have not been having any luck trying to get a loan modification with their mortgage holder will be happy to know about the recently initiated loan modification process.
Due to the low percentage of permanent modifications that are being offered the Treasury Department is now offering struggling homeowners a streamlined procedure with less paperwork and a short turnaround time.
Until recently the success rate of the Home Affordable Modification Program (HAMP) was rather dismal. Over $73 billion dollars that was accessible to fund HAMP was not being used to help homeowners who were facing foreclosure.
However, as of the beginning of this quarter new timelines and guidelines kicked in. It’s hoped that these changes will, at the least, let homeowners know whether they qualify for HAMP is a more reasonable amount of time.
It is now possible to get an answer to a loan modification application within thirty days.
If approved, it will be possible for borrowers who find it difficult to make their existing monthly payments, or those who will probably be delinquent in the foreseeable future, to reduce their net payable monthly payments or increase their mortgage tenure and get a more affordable mortgage loan repayment plan.
A search of the Internet will help those in need discover what the home affordable modification guidelines are – the ones that they need to know in order to qualify for HAMP.
So, it is now possible to get an answer within 30 days. Will those answers mostly be no? Will Chase all-of-a-sudden stop losing paperwork?
Legal & regulatory, Loan modification | admin July 9, 2010
