How Loan Modification Services Provide Foreclosure Relief

Posted March 9, 2010 – 5:37 am in: Uncategorized
     

Very little of the 75 billion dollars the banks received from the stimulus package has been used to help borrowers who are in trouble with their mortgages. The government has decided to try to pressure the banks to approve more loan modifications to provide foreclosure relief to borrowers. It’s about time they did something, but is it possibly too little, too late?

Only about 1,700 homeowners have succeeded in getting permanent loan modifications through the program since it began in February. According to the banks, people are not turning in their forms so they cannot process the applications. If I was losing my home, I’m sure I would find time to fill out some paperwork to try to save it. That must be one huge stack of forms.

More than sixty percent of the people who are believed to qualify for modified loans have not completed all of the necessary paperwork. However, this is only part of the problem. Very few of the people who have turned in their paperwork in full have gotten approved either.

If over 225,000 people didn’t complete their forms, there were a bit fewer than 150,000 who did. About 50,000 of the people who completed their applications have not heard anything yet. Of the 100,000 who have, roughly 1. 7% actually got permanent modifications to their loans. That’s a pretty pathetic figure.

In order to try to get more banks to approve modifications, the government has decided to put on their bullying hat. Treasury Department SWAT teams are scheduled to be making visits to lenders next week so they can determine which banks are not making enough loan modifications. Then they will publish a list for everyone to see. I bet the banks’ officers are shaking in their boots over that.

If you are planning on taking advantage of Obama’s loan modification program to save your home, you should consider consulting a loan modification attorney.

To learn more information about loan modification services contact Janian and Associates for a free consultation.

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