How hard is it to get a loan modification?

People ask: Can I get a loan modification. Looking at the numbers below, it looks like about  only 2.3% of borrowers who need help actually get it from permanent  loan modifications:

More than 5 million U.S. households are behind on their mortgages, and a government-sponsored program in which banks reduce monthly payments voluntarily has, by all accounts, foundered.

Only about 116,000 homeowners have had their monthly burden permanently lowered by the Obama administration’s Making Home Affordable Modification Program. About another million are enrolled in trial modification plans.

Many mortgage borrowers are underwater, meaning they owe more than the property is worth. In the Bay Area, about 27 percent of mortgage holders are underwater. In California, that figure is 35 percent.

Government payments are central to the new strategy. If lenders agree to certain guidelines and a short sale is completed, $1,500 goes to homeowners who move out, $1,000 to the servicing bank and another $1,000 to any second lien holders.

The program imposes new demands on banks. They must fully release homeowners from future liability for their first mortgage. They also must work with those homeowners who despite help from the government loan modification program are delinquent on their mortgages.

2 Responses to “How hard is it to get a loan modification?”

  1. Я извиняюсь, но, по-моему, Вы ошибаетесь. Пишите мне в PM, пообщаемся….


  2. The key word is permanent loan modifications! The banks are buying time, and often are just waiting (and keeping YOU waiting and paying interest while they remain poised to strike and take away your home when the profit peaks due to interest rate increases, better prospects for a lucrative sale, etc. The key work is “permanent” loan modifications. Temporary loan modifications help banks, permanent loan modifications help distressed borrowers and foreclosure victims… Maybe that’s why there are so few permanent loan modifications?