Loan Modification Significantly Doubles in the Last Month of 2009

Since it was initially launched in March of 2009, the Home Affordable Modification Program has enrolled close to a million distressed borrowers.  Of these, more than 110,000 have been approved for permanent modification with 60 percent having been accepted by the homeowners as final and the remaining 40 percent just needing the homeowner’s acceptance. The U.S. Treasury department has noted a considerable uptick in the pace of permanent loan modification under the administration’s HAMP lately.  The end of November 2009 saw loan servicers awarding permanent mortgage relief to 33,000 borrowers and the Treasury’s latest progress report confirms that the number had doubled by the year’s end. The Homeownership Preservation Office is committed to working hand in hand with servicers and borrowers to sustain and improve the loan modification process. It has taken a number of measures to assist servicers and speed up the system to give eligible homeowners the
opportunity to salvage their distressed loans through HAMP. These measures went as close to federal officials being on-site at servicer offices to certify that these companies were doing their jobs in delivering restructured proposals to borrowers for the trial phase. Much of the delays in processing were usually caused by missing documents and paperwork, and federal employees made themselves available to assist in the completion process. A temporary review period extending until the last day of January 2010 has also been implemented so borrowers can be assured that their cases are being fairly evaluated for inclusion in the program. HAMP was devised to provide more affordable monthly mortgage payments that homeowners can sustain amidst the present economic downturn. On the average, more than 850,000 homeowners with those still in the trial period included, have seen their monthly mortgage dues drop by about $500. Treasury officials claim they are on track in accomplishing the goal
s laid out by President Obama when the Home Affordability and Stability Plan was announced following his assumption of the presidency. The plan embraces a number of initiatives that go beyond just mortgage modifications. It also includes providing support to Freddie Mac and Fannie Mae so interest rates are kept low, tax credits to aid in the development of affordable housing, and support to state and local housing finance organizations. Earlier into the implementation of loan modification packages at the start of 2009, problems were noted especially on the failure of homeowners or their loan servicers to come up with workable proposals to their lenders.  Since loan modification was a new thing, both parties were struggling to find the right formula to come up with adjusted loan terms and conditions that were favourable to both lender and the homeowner. With pay cuts and reduced hours, homeowners were barely able to comply with their monthly mortgage payments, much more pay for th
e charges of a loan modification servicer.  The results were incomplete loan modification applications that were shelved b y the lenders. But there are other options homeowners can take so they can submit workable proposals to their lenders. To learn more on how to speed up you loan mod applications without the exorbitant fees, explore these OPTIONS.

View this post on my blog: http://www.federalpersonalloan.com/federal-personal-loan/loan-modification-significantly-doubles-in-the-last-month-of-2009.html