This morning I read a blog written by Lenn Harley:
I commented on that blog and was prompted to write this one. Home owners are struggling and they really need help. We need programs that will actually work. This blog is about HAMP and other programs that were supposed to help people stay in their homes. HAMP was supposed to help homeowners restructure their loans to help them stay in their home. In my opinion, this program has been a TOTAL FAILURE. The statistics I've been hearing say that maybe 5% of home owners have actually succeeded in a restructure. I may be wrong about this number, but I'm certain the number is extremely low.
Here is a story about one family I know that attempted a restructure with Wells Fargo. The husband lost his business to the economy. The wife's family business has suffered downturns due to the economy, however, it is still active and struggling. Their bottom line is that their income has suffered and their mortgage payment was a struggle for them.
They contacted Wells Fargo to attempt to restructure their loan. Wells Fargo sent all the paperwork and told this family to send monthly payments that were approximately $200 to $300 less than their current mortgage payment while the process went forward. Wells Fargo said they would know if they qualified in about 3 months. This family paid their mortgage as requested by Wells Fargo and has stayed in touch with Wells Fargo throughout this process. After 3 or 4 months, Wells Fargo asked for more information and told this family to be patient. Another few months and Wells Fargo continues to say, be patient. After more than a year, Wells Fargo now notifies this family that their restructure is DENIED. Yes, after more than a year!
They also told this family that they owe over $5,000 to bring their mortgage current. But not to worry, HUD will pay this as an interest free loan and create another lien against their property. The family didn't know what else to do, so they signed the paperwork for the HUD loan. And, throughout this process, Wells Fargo has been reporting to the credit bureaus that the loan is being paid late.
After more than a year, NO restructure, another lien against their home and bad credit.
Does anyone consider this HELP? Home owners need help and it is simply not out there!
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