I found an interesting article about Loan modifications at HousingWire.com
Bank of America took 100 random mortgages which were delinquent on their loans. They tracked these loans through the path to loan modification to see how successful the HAMP program is working. What did they find? Out of 100 loans how many do you think successfully navigated the HAMP path?The HAMP Path
Before anything can be processed the bank must contact the owners of the delinquent loans. After trying to make contact with these 100 owners, Bank of America had to mark 28 of them as unreachable. They made 110 phone calls to each owner and delievered eight customized letters to them; but received no response. With no response from the owners they were unable to go forward with the modification.
100 became 72
The 72 owners who were contacted submitted their information for loan modification consideration. A total of 52 did not meet the qualifications for modification. 25 had mortgage payments that were already below 31% of their monthly income. 16 did not qualify because they do not have a high enough monthly income. And 11 would not submit documents to validate their hardship.72 became 20
These 20 were offered a temporarily modified loan for a 3-month trial period. If they were able to make the 3 consecutive payments at the modified rate, then their mortgage would be permanently modified. Unfortunately 6 of the 20 were not able to make the payments and were disqualified. At the end of this long road, there are only 14 who were able to permanently modify their loan.20 became 14
As you can see about 14% of delinquent loans successfully navigate the HAMP loan modification process. This program was established in February of 2009 with the promise that is would help 3 - 4 million Americans renegotiate the terms of their mortgages. Two years later, the program has permanently modified only 540,000 loans. There have been 1.5 million temporary modifications – but more than 800,000 of them have been cancelled.
If you are delinquent on a loan, or may become delinquent, contact me so we can explore other options for you. This is not the only way to get relief. Boost your chances. There are better options!!
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