Are Banks Using HAMP Money Effectively?
The Home Affordable Modification Program is the Obama Administration's new loan modification program aimed at helping communities by providing homeowners relief with home loans that are more affordable. HAMP is based on the fact that foreclosures are costly for everyone involved. Homeowners, mortgage lenders and investors, and even neighbors trying to sell or refinance their homes. The HAMP program requires servicers to do what is in the best interest of homeowners, lenders and investors-by requiring them to offer loan modifications in a consistent manner on all loans for which they are responsible when a modification is more cost effective to the lender then letting the home go in to foreclosure.
President Obama had great intentions coming out with the HAMP program, however most of the lenders are just not staffed or cooperative to those seeking assistance. Many of the banks received over $700 billion in TARP money to prevent them from going under and help ailing homeowners stop foreclosure and yet seem to be doing absolutely nothing with their TARP money. The problem is that the banks are simply understaffed and yet hold times to get a hold of lenders loss mitigation departments can result in hours sitting on hold. Many times to even be hung up on by people switching shifts.
Banks receiving money from TARP need to be more responsive and should be held accountable for this money. The intentions of this program were to provide principal reductions and rate reductions to homeowners facing foreclosure or trying to stop foreclosure altogether. All this while many homeowners have been getting dragged along for up to six months or even longer just to get their loans modified and start saving money.
While it has been a rough ride for millions of financially troubled homeowners, the good news is that some of the banks have become to be more accustomed to the loan modification procedures and are starting to get in line with the program. If other lenders follow suit and begin to use the TARP money for what they were supposed to and start helping homeowners in need of economic recovery, they could prevent 1.5 million foreclosures in 2009. Lenders if your listening, please help homeowners and use the TARP funds to help homeowners.
Professional Loan Consultants, Inc. (PLC) is a group of experienced mortgage professionals and attorneys who specialize in helping people save their homes from foreclosure. In this economy, many people have suffered financially from many hardships causing them to fall behind on their mortgage. Professional Loan Consultants, Inc. works with lenders to find the best remedy to protect the homeowner from the adverse impact of ensuing foreclosure. Through our many remedies, Professional Loan Consultants, Inc. works directly with the bank's Loss Mitigation Department to help our clients stop foreclosure, keep their homes and re-negotiate their mortgages in order to make their payments affordable through the "Loan Modification" process.
For more information on the HAMP Program visit http://professionalloanconsultants.com/Illinois_Loan_Modification_Services.html
Source: http://ezinearticles.com/
Added: July 4, 2009