Bail Out

Loan Modification Services Offer Foreclosure Relief

March 9th, 2010 | Author: Ginger Taylor

The huge 75 billion dollar bailout back in February was supposed to provide funding to help provide foreclosure relief for millions of Americans behind on their mortgages. However, the number of people who have actually been helped by the program is dismal. The government hopes to pressure banks into processing more loan modifications for borrowers.

[I:http://mortgagerefinancingloan.org/wp-content/uploads/2010/03/GingerTaylor10.jpg]Since February, a whopping 1,700 borrowers have received new loans under the loan modification program. The poor results are being attributed to the unwillingness of borrowers to submit the paperwork required to apply for the loan modification. It makes you wonder just how long that application is.

The banks say that one of the biggest problems is that the people who could probably qualify for loan modifications simply don’t turn in complete applications. They need to fill out the paperwork completely in order to qualify. Less than 40% of homeowners who could qualify have completed the application process. There sure must be a lot of paperwork involved if so few have been able to follow through with getting it all filled out.

The paperwork is not the only problem, though. Based on some recent figures only about 1. 7% of the people who have turned in their completed paperwork have been approved to receive modified mortgages. Around 50,000 applicants have not been notified whether they are approved or not, so it appears that about 98,300 have been rejected, compared to the 1,700 who were accepted. That seems a little unbalanced.

In order to try to get more banks to approve modifications, the government has decided to put on their bullying hat. Treasury Department SWAT teams are scheduled to be making visits to lenders next week so they can determine which banks are not making enough loan modifications. Then they will publish a list for everyone to see. I bet the banks’ officers are shaking in their boots over that.

If you are planning on taking advantage of Obama’s loan modification program to save your home, you should consider consulting a loan modification attorney.

[youtube:v8VRVuMlEUc;[link:stop foreclosure];http://www.youtube.com/watch?v=v8VRVuMlEUc&feature=related]

To learn more information about loan modification services contact Janian and Associates for a free consultation.

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