A Picture says a 1,000 words – More on Sad State of Loan Modifications

Today’s Boston Globe had the best graph of the success of major banks efforts to move forward with Loan Modifications.. And the sh

In March, the government launched the $50 billion program to help up to 4 million financially troubled borrowers, those who can’t afford to pay their mortgages because their interest rates spiked or they have lost income. The Treasury’s report card analyzed eligible loans that were delinquent for at least 60 days. It showed that only 235,247 of those borrowers, or 9 percent of the total, have been given a three-month trial modification, which becomes permanent if the borrower pays on time.

Click here for the full article

A Bill in California Will Establish That Lawyers Cannot Be Trusted

“To pass into law a piece of legislation that so clearly, thoroughly and seriously maligns the legal profession, based on allegation and innuendo would cause our society harm that could conceivably last for generations.  To believe that attorneys in large number are defrauding distressed homeowners out of $3,000 fees for work that can take many months to complete, stretches the imagination past the point of credulity.

Most notably, CNNMoney.com recently asked homeowners who attempted to obtain a loan modification through the HAMP program WITHOUT ASSISTANCE OF ANY KIND to write in and share their experiences.  Well over 500 letters were received and the overwhelming number expressed intense feelings of extreme dissatisfaction and disappointment.

Additionally, in the last two weeks, we have all learned that banks and servicers have not fulfilled their promises to modify mortgages per the agreed to terms of HAMP, much to the administration’s chagrin.  Treasury Secretary Geithner and President Obama have both admitted the program has not worked effectively and now promise tighter controls.”
Read more here: http://mandelman.ml-implode.com/2009/08/a-bill-in-california-will-establish-that-lawyers-cannot-be-trusted/

Status of HOPE for Homeowners – Is there Hope?

Anyone seeing any impact from these changes?

Announcing Changes to the HOPE for Homeowners Program

On May 20, 2009, President Obama signed into law the Helping Families Save Their Homes Act.  This act modifies the HOPE for Homeowners Program with the goal of helping additional families avoid mortgage foreclosure.  FHA is currently preparing guidance related to these changes, and anticipates releasing it in the near future.  The statutory changes to the program include:

•  Additional compensation for primary and subordinate lien holders.
•  Establishing incentive payments to servicers of loans refinanced under the HOPE for Homeowners Program, as well as originators of new HOPE for Homeowners mortgages.
•  Reducing costs of the program to the consumer.

To learn more about the changes to the HOPE for Homeowners program and other important provisions contained in the Helping Families Save Their Homes Act, click here.