The much anticipated HAMP report card on the foreclosure prevention program was released by the Treasury Department on December 10, 2009.
Decide for yourself how the banks are doing.
- 728,000+ Home Affordable Modification Program (HAMP) trials Nationwide
- 375,000 scheduled to convert to permanent modification by the end of 2009
- 31,382 have successfully transitioned
After reading the report, it appears there is more finger-pointing and blame taking place than successful loan modifications.
A few claims blames outlined in the report:
• Servicers need to do their part to help borrowers complete the process and get to the finish line.”
• “The problem lies in the paperwork.”
• “Borrowers just don’t submit the required documentation for conversion once they complete the trial phase, or file incomplete or inaccurate information.”
• It’s the Servicers and their staff that cause the delays, and in some cases, even lose the paperwork.
• Servicers still lack the capacity to effectively administer a program of HAMP’s size and scope.
• “Homeowners still have terrible trouble reaching their servicers, and when they do, they often encounter staff who are ignorant of the HAMP program, they sit through attempts to steer them into other products, and they are unable to get any firm decisions made in a timely manner.”
• The borrowers’ documentation gets lost in the shuffle or never gets tagged for the appropriate account.
Reportedly, there is a new push by the administration to compel servicers to increase their success rate in completing permanent loan modifications. The drawback if they don’t could be the imposition of fines, withholding cash incentives and publicly naming companies who fail to perform.
The bitter truth: Loan modification programs are not working.
The comments made in the Treasury Department report are all true. I am speaking from "in the trenches" "feet on the street" experience. From the Top (Obama Administration) banks are mandated to improve on their performance ... and yet ... the banks clearly do not have the infrastructure, systems, processes and procedures, nor adequete numbers of trained employess to manage the volume of applications they receive.
Many homeowners have unrealistic expectations are in denial regarding loan modifications. Let's fece it ... most homeowners who attempt a loan modification did not "qualify" for the loan they received in the first place. Loans were made based on "stated income" with no documentation.
The loan modification process is proving only to forestall the inevitable. The numbers speak for themselves. A homeowners chance of a successful loan modification are slim to none.
Chances are, you or someone you know in San Jose California is facing the possibility of foreclosure. You need to understand that you are not alone.
These are tough and frustrating times. Now more than ever, it's important to identify your options. Foreclosure can be avoided, your credit can be saved, and your financial future can be salvaged.
As an agent with the CDPE® Designation, I have a strong and unique appreciation of the factors affecting the market, and know that there are options available for struggling homeowners. If you, or someone you know want to learn more about the alternatives to foreclosure, please visit San Jose Short Sale Specialist.
We are here to help … in any way we can.
Copyright © 2009, All Rights Reserved by Kathleen Daniels *Foreclosure Prevention Program - Mortgage Modifications*
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