Of the 760,000 homeowners to apply for a loan modification under President Obama’s mortgage relief program since March, only 31,000 have received permanent loan modifications. Bank of America was the worst performer of all the big lenders, completing only 98 loan modifications out of the 160,000 applications filed by the end of November. Even the best performer, GMAC, was unimpressive. They completed just 7,100 loan modifications.
Overall, only 4% of enrolled borrowers successfully completed permanent loan modifications.
In recent weeks, critics of the president’s Home Affordable Modification Program (HAMP) have called for a more aggressive approach to loan modifications.
One overlooked resource
Generally, one of the requirements for successfully completing a loan modification under The Home Affordable Modification Program (HAMP) is using the services of a housing counselor. This service is free to the borrower and paid for by the government. The housing counselor will help you come up with a budget you can afford. The counselor is also your advocate. If you are having problems communicating with your lender, contact your counselor. To find a HUD-approved housing counselor, call 888-995-HOPE. They can refer you to a counselor in your area or arrange for an over-the-phone consultation. Remember, the HUD-approved housing counselor is free to borrowers and does not represent the interest of the lender.
If this approach fails, perhaps resort to the advice given on DHW a while back.
DHW asks: Have you applied for a loan modification under HAMP?