…”We Can Help You When The Loan Goes Into Default”
August 19th, 2009 Categories: Pre Foreclosures, Real Estate News, Real Estate Trends
Even after plenty of bad press and negative feedback, banks loan modification, loss mitigation and workout departments are advising customers that only loans that are behind on payments are being seriously reviewed for modification. And even then, only 9% of eligible customers are being approved.
The Obama administration is putting more pressure on lenders and their servicers, (bill collectors on behalf of investors who own mortgage bonds) in order to get the companies to change policies and make it easier for struggling homeowners to solve the problems of loans coming unlocked in the face of negative equity.
The administration on Aug. 4 unveiled the first of what has been called monthly “name and shame” exercises; they will be publishing data on the loan-modification efforts and their results of about three dozen companies.
The administration says that about 2.7 million U.S. homeowners are at least 60 days behind on their mortgage payments, nearly exactly the population of Kansas. Yet only 9 percent of eligible borrowers nationwide had been offered trial loan modifications through June.
