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9 News Report on Roxane Webster and My Home Team

9 News experts Roxane Webster and Jake Gienger discuss Foreclosure, Loan Modification and short selling

Getting Your Loan Modified

Top three lenders get really bad report card

I read this week in DSNews.com that the US treasury department came out with a report card on Loan Modifications.  It shouldn’t come as a surprise that the top three servicers, Bank of America, JP Morgan-chase and Wells Fargo had such miserable performance on loan modification that the treasury department has cut them off.  They won’t be receiving the financial incentives from the government for modifications until they improve their track record.

You could say that it is about time that they got some consequences for their poor performance, but from my vantage point, they now have less reason than ever to work with consumers on getting their loans modified.

In April, 2011,  only 29,000 HAMP trial payments were converted to permanent modifications nation-wide.  This comes up to an average of 580 per state.  Here in Colorado,  we still have over 5000 homes in foreclosure just in the greater Denver area and nearly 7% of homeowners are 90 days or more late on their mortgages.

I am glad that we are starting to get some straight talk on loan modifications.  They aren’t working, and millions of homeowners are pinning all of their hopes and fears on a process that is failing them entirely.

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