Phoenix Loan Modifications: Results May Vary

I just saw this eye-opening article from Housingwire.com:
13.9% of Ocwen’s HAMP Modifications Complete Trial Stage
Through HAMP, the US Treasury Department allocates capped incentives to servicers for the modification of distressed loans and adjusts those caps based on performance. According to a report from the Congressional Oversight Panel (COP), HAMP servicers converted 1,711 loans , or 1.26% of the trials, into a permanent modification since the program’s launch in March 2009 to September 2009.

In order for a trial to be converted into a permanent modification, the homeowner has to make 3 consecutive payments at the new payment amount.

“We’re committed to modifications that stick; those are the ones that help homeowners for the long run, mitigate the mortgage crisis and, importantly, generate, incremental revenue for our shareholders.”

If this were true, the part about making the modification stick, don’t you think they could find a way to get more then 13.9% of their modifications stick?

The problem is that many homeowners try to do this on their own. Though everyone has the ability to do their own loan modification, the results clearly are not the same. When we work with you to do a loan modification, we make sure that your new payment is something you can afford. We will guide you through what they offer, and let you know if we feel there is a better offer available.

Bottom line: If you can not afford the new payment, DON”T ACCEPT IT!!!

When you accept these new payments, you are locked in. You will not be able to do another modification for a year. A lot can happen over the next year. Make sure you will be able to afford the payment.

If you are looking to do a loan modification in the Phoenix area, or explore other alternatives to foreclosure, please don’t hesitate to give me a call. We can set up an appointment and walk you through all of your options. (480) 389-5199