How Loan Modification Services Provide Foreclosure Relief
The huge 75 billion dollar bailout back in February was supposed to provide funding to help provide foreclosure relief for millions of Americans behind on their mortgages. However, the number of people who have actually been helped by the program is dismal. The government hopes to pressure banks into processing more loan modifications for borrowers.
[I:http://realnews.galanter.net/files/2010/03/GingerTaylor10.jpg]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.
The paperwork is not the only problem, though. Based on some recent figures only about 1. 7% of the people who have turned in their completed paperwork have been approved to receive modified mortgages. Around 50,000 applicants have not been notified whether they are approved or not, so it appears that about 98,300 have been rejected, compared to the 1,700 who were accepted. That seems a little unbalanced.
The government is now trying to get banks to get more loan modifications processed. SWAT teams are being sent to the banks from the Treasury Department to oversee how the banks are handling the loan modification applications. The department plans to publish a list of lenders that are not doing enough to help borrowers next week in order to get them to approve more modifications.
It looks like the much needed foreclosure relief that was promised by the government is moving slowly. Making the program voluntary was a huge mistake that government officials really should have seen coming. Is it any big surprise that mortgage companies don't want to reduce the amount of money they are owed and take a smaller profit on those mortgages? Everyone looks out for their own bottom line, and that especially includes mortgage companies.
To learn more information about loan modification services contact Janian and Associates for a free consultation.
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