But, also like many Americans, Leahy has hit a snag in converting her loan.
The bank says she should qualify but has yet to process her paperwork. Now a collection agency has started to circle her home, saying she has until Jan. 4 before it goes up for sale.
Her stark circumstances are becoming more common as more people across the nation complain about lost documents, lack of communication between lenders and service companies and an overall slow process. The situation has prompted the Obama administration to release a new set of guidelines aimed at placing more pressure on lenders to convert those trial loans into permanent ones – or else.
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I’m glad to hear that the Obama administration is finally going to do something about this. However, does this mean the lenders will have to convert more trial mods to permanent ones, or government funded (FHA loans) only? Will this work? Or are the lenders going to find loopholes in this as well? I hope these new guidelines really help people in need!
Billy
Blah Blah Blah! Obama! Blah Blah Blah!
The legislation only stated that lenders would be penalized if they didn’t those in the loan modification process through by the end of the year. It does not address temporary versus permanent loan modifications.