Where's our $75 Billion?

Where's our $75 Billion?

Apparently not in loan modifications yet, since the numbers are lousy so far. Only 9% of homeowners who are delinquent on their mortgages have been assisted with trial loan modifications so far. 15% of borrowers have been offered modifications, which only translates to just over 400,000 homeowners. Who holds your mortgage can GREATLY influence whether or not you are getting this offer. Saxon has 25% of delinquent borrowers in modification, whereas Wells Fargo and B of A only have 5-6% in modification. Yuck. So the first four months of this program have been rough, and Washington D.C. wants to see 500,000 loan modifications by November 1st.

On a lighter note - Without proper staffing at the lenders, they simply cannot handle the deluge of requests. Here's a suggestion for the Obama Administration if they want to get serious about solving this problem: The banks have had ample time this year to take action and keep people in their homes, and they are fumbling around and not getting it done. If the government wants to create jobs, let them hire thousands of people to be loss mitigators outside of the lenders. The positive result is twofold: New jobs created and more people getting their loans modified!

We encourage you to call these loss mitigators at the lenders yourself if you need help making your payment. Our specialists can coach you and give you some good information to help you help yourself, but most companies just want to take your money and run. Don't pay someone to do it for you, they will get you similar results! Even if they don't modify your loan, the worst case scenario is that it slows down your foreclosure and keeps you in your home longer!


Written by Nick Shivers