Obama Loan Modification Plan Gets Closer to the Goal
By: Sarah Greenleaf, PR Intern | September 9, 2009
CNN Money reports today that 12% of eligible borrowers have been placed into trial loan modifications, up from just 9% a month ago. This comes from the second progress report issued by the government, which also says that 360,165 homeowners — who were at least two months behind in payments — received assistance through August. The goal of Obama’s Making Home Affordable Loan Modification program is to have 500,000 loan modifications under way by November 1.
The loan modification initiative was announced in February, began accepting applications in April, and is projected to help up to 4 million homeowners. The plan calls for servicers to reduce monthly payments to no more than 31% of a mortgage holder’s pre-tax income.
There are now 47 servicers participating in the program, and, though the performance of the providers has been all over the map, Bloomberg News reports banks are stepping up loan modifications. The administration is releasing monthly servicer performance reports in an effort to hold the institutions responsible for their performance and so the public will be able to see which institutions are lagging. Many borrowers have complained that servicers are not responding to their calls and applications, and that they are denied without explanation.
Even with all the efforts to refinance, the number of people falling behind on their payments continues to mount as unemployment rises.
Take this loan modification quiz:
“Do You Qualify for a Loan Modification? You might. Take the quiz to see if you might qualify for a loan modification. Or, if you have a Web site or a blog, add the loan qualification widget to your site. It’s free and a fun little quiz to keep your visitors engaged. Plus, you get free co-branding.
- Stumble it!
- Categories: Mortgages
Comments
8 Comments so far
Enjoy this post? Subscribe to the Zillow Blog feed or get updates via e-mail
abe vigoda on September 11, 2009 6:58 am
I wonder how many of these participants were prostitutes with pimps like the one ACORN tried to sign up?
NO FRAUD HERE folks!
Free Loan Modification Kit on September 12, 2009 12:24 pm
Yea there is always gonna be fraud in every plan. What they need to see is the ratio between out right fraud to the amount of real people who are actaully benifiting from these plans
ALEX S on September 21, 2009 2:15 pm
Receiving a legitimate loan modification these days can be a very difficult task. Whether it’s through your lender, on your own, or through a company that offers services there is going to be a process in order to obtain a successful modification! ( BEWARE OF SCAMMERS!) Unfortunately in this time of economic struggle it’s tough for everyone and every industry has taken severe hits. There is hope though, We at CAHomeModificationCenter can truly help! Whether it’s letting you know options you never knew existed or simply showing you how to do it yourself! WE WILL HELP! THAT’S OUR WORD! If you need professional assistance with your Loan Modification please call and we will be more than happy to discuss ALL possible options. JON B 760 580 5621 . In the next several years the United States is expected to have over 2 millions foreclosures. Many homeowners are faced and stuck with their outrageous adjustable interest rates and are unable to refinance and are left with a payment that has skyrocketed through the roof. Anyone reading this in this situation already knows, trying to even CONTACT your lender is an ABSOLUTE NIGHTMARE! 1. They don’t have enough manpower for the amount of people in this situation. 2. THEY WANT YOU TO STAY IN YOUR HOME! (think about your property value right now compared to 5 years ago)…They’d rather get their property later down the road. 3. The major lenders aren’t exactly doing too well financially. Bottom line there is A LOT involved in obtaining a successful modification and I will educate you and breakdown everything you need to know in order to save your home! At CAHome Loan Modification Center we CAN and WILL help! We have been servicing homeowners for over 20 years and are the very best in the modification department!
JON B 760 580 5621
Tips for loan modification on September 21, 2009 5:53 pm
That’s good news. People are starting to wise up and realize that there are options other than foreclosure, loan modifications being one of them when they are done right
Loan Modification Company on September 25, 2009 8:37 am
There’s so much misinformation out there that people don’t really know what is and is not. It’s refreshing to see people that know what they’re talking about. You have an Informed commentary seems to be a rare commodity these days. Keep it coming
Cindy on October 11, 2009 5:14 pm
Get real people. I am denied 5 days after all the paperwork has been faxed 5 times and signed for certified mail, no explanation why. I made the first trial 3 month period payment on time too. The banks are going to continue to deny everyone. Obama’s program does NOT WORK people!
Kim on October 15, 2009 8:39 am
Yup - Cindy I am seeing a plethora of these situations and it is why we did not accept the loan modification plan. We cannot afford to throw over $4000 at Chase and then have them deny us anyway! This is a real travesty and MUST be fixed. Hardly anyone will actually get modified after trial and all the banks get our money we get NADA - But now what do we do ?
elkate on November 11, 2009 6:34 pm
DO not sign on to a “trial” loan modification without identification of the actual and current lender/creditor. Trustee and trusts and servicers do no qualify as a creditor under the TILA definition and under the May 2009 TILA amendment that requires identification of the CURRENT creditor. Trial modification is just a avoidance of a contractual obligation to identify the actual creditor and will only cause future problems. Some loan modification agencies will enforce compliance with the TILA.
ENFORCE identification of the current creditor.