Concerns about lenders not working with their clients to help modify their loans with the government programs that are available, seems to show improvement. The treasury department found that the temporary modifications that were made permanent have doubled in December.
When pressure from government officials began, lenders started working on mortgage modification more effectively. In December a total of 697,026 trial modification had taken place. The amount of homes in foreclosures was up 2.8 million. Compared to the amount of foreclosures, more modifications need to take place. The Home Affordable Mortgage Program has saved many homes, but more needs to be done to catch up with the increasing rate of foreclosures.
The goal of the administration was to reach three to four million modifications by 2012. They are realizing now that more modifications need to take place. Officials are well aware of this and hopefully they will review possible options and take action soon.
Overall, JPMorgan Chase & Co., Citigroup and Wells Fargo & Co. had dramatically increased their trial modifications and permanent modifications in December. Bank of America was considered the lender with the worst amount of modifications, but they have dramatically improved. From only 2,737 final modifications in November to 34,000 clients on trial modifications in December and an estimated 200,000 clients who are set to start trial modifications.
With government officials emphasizing the importance of modifications and using their resources to lessen foreclosures, lenders are working toward the same goals and have programs of their own to assist homeowners in default.
Contributor, designer & admin for JohnHart Gazette.
