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 December 16, 2009

Lenders Who Resist Loan Modification To Be Revealed
Some lenders are refusing or putting off the modification of existing home loans and/or delaying taking action to convert temporary modifications to permanent ones. Many of these lenders are to be named by the Administration in hopes that they may become motivated to take action and to move more quickly, which should be of aid to homeowners who are dealing with mortgage payments that they can no longer afford due to job loss, etc. This should help put the housing sector on an even keel.
Homeowners who qualify under the loan modification program are able to get a mortgage payment reduction for 3 months, after which a modification of the mortgage payments would be permanent and would be not greater than approximately thirty percent of their monthly income. So far, of the more than six hundred thousand applicants, only approximately seventeen hundred have been able to obtain permanent modifications.

While lenders are taking steps to expedite service via hiring more people, they are somewhat delayed by the necessity of obtaining from the holder of the mortgage permission to do a modification. As a result, the loans must be considered individually, which takes time.

Meanwhile, the local HUD offices will be giving out information to various approved borrowers' counselors so that they can in turn provide aid to borrowers in obtaining a modification of their loan.