Yes, I agree that many homeowners never reach out for help when they are facing foreclosure. Many are unaware that they can be helped and they end up suffering silently and just eventually become another statistic of the foreclosure crisis.However, it’s what they get when they do reach out to their lender for a loan modification that is disturbing.
Treasury Secretary Henry Paulson acknowledged yesterday that not enough troubled borrowers are asking their lenders to modify their mortgage loans, but said a coalition of lenders will take steps early next month to correct this problem.
Paulson said members of a coalition of mortgage servicers, counselors and industry trade organizations will send a letter on November 19 that will invite all struggling borrowers to call in and start the process of examining whether their loan can be restructured in a way that allows them to stay in their homes.
‘Most of the servicers have aggressive programs underway to reach borrowers who are having trouble paying their mortgages,’ Paulson said. ‘But they are finding that the response rate isn’t high enough.’
Excuse me Mr. Paulson. Where the hell are you getting this information? Oh, wait, from the lenders. WELL DUH! Of course they are saying that. But have you spoken with real borrowers who have tried to reach out to lenders for help?
The facts are that they do not have these aggressive programs and they are not actively helping suffocating borrowers. It’s like the fricken lottery the way these loss mitigation departments are ran. This is how I envision the calls that come in to these servicer’s and lender’s loss mitigation departments.
”OK, India, this is Mike, your sweat shop manager from the US of A. The call coming in is right now is the 1 millionth whining homeowner phone call this week. This is the lottery winner and the grand prize for this lucky borrower will be good customer service, an actual American person who knows what they are doing and has the actual authority to do something will take the call, and maybe, if they are super duper lucky and I feel good, they will get a loan modification.”
So lets get real here Secretary Treasurer Paulson. Please?
What needs to happen is that these loss mitigation departments need to be policed by a government agency because they are LYING to you sir. There needs to be strict guidlelines enforced and standards for these departments to run by. A general operating procedure to expedite this process.
In the mean time, lenders will continue to promote their propaganda, so they can buy time and hide the reality of what is really going on.
Lets see what Hope Now and Mr. Paulson can do to stop these cowboys.
How about Webcast? I would love to be there, but I’m in Florida.
Save me a seat!
Let me see what I can do. Great idea!
Righty Oh Mr. Molinaro!
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[...] Bush announced details of the Hope Now initiative that Secretary Treasurer Henry Paulson has been diligently working on since August. The plan was part of deal with lenders, servicers and investors to come [...]
Will you be having anymore seminars like this?
Denver Houses For Sale
I had to respond to this. In November I let my first mortgage company know that I will have trouble paying the new adjusted rate in January and was wondering if they could help me out. I have been on the phone almost every day for one hour or more on hold since November. I wanted to make sure they received all of my docs and they understood my situation. Needless to say today is April 1, 2008. I did receive a modification. It is the same loan. I called GMAC and they said that is the best they can do. I asked if they could at least freeze the rate so the payment can remain as it was before. They said that is the best they can do. I tried talking to a manager and they told me no one else can help.
I called the hopeNow on March 26 and they told me to call them and try again. As I write this I am on hold with GMAC to talk to them again and tell them what the hopeNow guy told me to tell them. At this point it appears to me that GMAC is full of bull and they do not want to help anyone. The loan modification they gave me is the same amount the loan was that I have been telling them since November I cannot afford. At this point I am still trying but I do not expect much from GMAC.
Best of luck to you all.
Will
hi iam receivin at least 3 postcards a day from companies who claim to be able to work with my lender to modify my loan for a fee of course. how do you know which of these are not just out to buy your house from under you or just take your money? anyone heard of instant capital?