On June 1st we expect more changes to the modifications programs available to most consumers. The original plan was to modify over 3 to 4 million loans by 2010, due to the strenuous process, multiple requests of the same documentation and certain qualifications this set goal may not follow through.
At the end of last month a total of 168,708 mortgages were modified permanent. Another 1 million borrowers received trial modifications and had no promising time period as to when they would get a final answer for a workout plan. This is the reason why the Home Affordable Modification Program is not considered successful. The program has believed to have given those with temporary modifications false hope.
There are critics of the TARP program who state that the program is poorly planned and unsuccessful. The opposing side stated that improvement has been made and we are seeing more stability in the housing market.
Changes will include
- Prescreening all borrowers who have missed more than two payments
- Program will include borrowers who filed for bankruptcy
- Lenders will have to make earlier decisions for the final modification work out plan
- Tougher guidelines to prevent foreclosures
Contributor, designer & admin for JohnHart Gazette.
