Will 2010 Be The Year The Banks Give Back?
As 2010 begins and lenders appear to continue efforts to mitigate losses will corporate tycoons finally pony up and demonstrate a new level corporate responsibility?
Although many lenders have made substantial efforts in assisting distressed borrowers, they have not yet made a dent in the enormous number of bad loans that need to be mitigated.
The latest report from the FHFA issued on October 2nd 2009 presents a mixed bag of results as follows:
payday loan 90 days pay, icashloans apply, Payday loansCash Advance, Trial loan modifications under HAMP more than tripled from June 2009 to August 2009, from 66,200 to 202,200. Completed loan modifications decreased by 13 percent over the prior quarter to 32,300. Fifty-four percent of loan modifications completed in the second quarter resulted in borrowers' payments decreasing by 20 percent or more, compared with only 8 percent one year earlier. Mortgage delinquencies continued to increase during the quarter as higher levels of unemployment contributed to new delinquencies. Foreclosure moratoria associated with HAMP have contributed to the increase in delinquencies as fewer seriously delinquent loans are transitioning to foreclosure.
Edward DeMarco, Acting Director of the Federal Housing Finance Agency, states "We expect the number of completed loan modifications to increase as homeowners complete the HAMP trial period," said DeMarco. "Fannie Mae's and Freddie Mac's efforts with servicers and homeowners are critical to preventing unnecessary foreclosures and to keeping people in their homes."
Under the HAMP program there are currently 728,408 active modifications. 697,026 are in the trial period and 31,382 have been made permanent.
Of the more than 728,000 HAMP trials under way across the country, 375,000 are scheduled to convert to a permanent modification by the end of the year, and only 31,382 have made the transition!
As you can see lenders have not met their commitments to date, and as anyone who has tried to work with a lender knows, the efforts involved in getting assistance are absolutely monumental.
Many borrowers and loan modification practitioners complain about lenders who consistently claim they don't have documents that have been sent time, after time. Long delays in the "review" process are commonplace and it appears to most that lenders are stonewalling on purpose.
Here are a few tips for taking advantage of the HAMP program:
Get educated QUICKLY; learn everything you can about the HAMP guidelines and what your lender offers in the way of assistance. Plan your request for assistance and be organized and prepared BEFORE you submit anything to your lender. Have ALL paperwork assembled so it reads like a story in chronological order. This will speed up the process.
Always be aware of the disclaimer they read you when you call. It's the one where they tell you they are required by law to advise you they are attempting to collect a debt and anything you tell them will be used for that purpose.
No matter how nice the representative sounds, they work for the lender and they are there to help collect your payments.
Of course getting a rate reduction that lowers your payments and modifies your mortgage could make the difference between keeping and losing your home. The Obama Administration created the HAMP program to offer the assistance you are looking for, and those who have been thinking about what they are going to do when they lose their homes should act now and take advantage of President Obama's HAMP program!
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