Monday, September 7, 2009

US Homeowner Wanting A Loan Workout

As Every Day Citizens are trying to get their loan workout either on their own or by an affiliate loan modification Company it seems like many banks are just short on staff and also short on knowledgeable staff. The wait period for a Loan Modification and qualifying for any of the programs or even HAMP seems to be lengthy. The typically loan modification as far as when final terms are actually inked and sent to the American Homeowner can take anywhere from 60 to 90 days.

It seems like some of the largest lien holder are trying to add staffs to handle the ongoing wave of defaulting mortgages and help the homeowner save their home and stop foreclosure. As the lenders are seeing increased requests to amend their loan terms and to get a Loan Modification, it is only the hope of the American Citizens that the banks respond quicker.

Many American Homeowner are asking the question, why didn’t servicers staff up quicker as they knew they had this problem, else they would not have needed the bail out money or TARP money. They knew they have toxic or troubled assets and also received billions of dollars to handle them almost a year ago. Yet the American people saw lay off after lay off in the banking industry. Then they saw lenders showing records profits like Wells Fargo showing a 41% profit.

Bank of America only opened three offices in Southern California to handle Attorney Loan Modification and loan work outs for its clients but none in San Diego. Remember lien holder of America bought Countrywide and now owns almost 45% of the bank business in the United States. We as the US Citizens have to wonder why they could only open three offices and not one in San Diego. We have to also wonder why they are not meeting government expectations on modifying loans for homeowners. Their Attorney Loan Workout rate is extremely low.

JPMorgan Chase Bank, which acquired two large mortgage banks, including Washington Mutual, opened five offices in Southern California, to handle Attorney Loan Workout and loan work out programs. These numbers are appalling when we see a Bank of America or x-Countrywide building in every city if not several in every city.

The success rate for these Loan Modification and work out programs is less then acceptable by the American Tax Payers and also not acceptable by the Government. It is it up to the lenders to lend the money that was given to them by the tax payers to provide loan modifications and loan work out programs for struggling US Mortgage Holders to stay in their homes

The Every Day Mortgage Holders and the Government is seeing very clearly that each lenders is doing what they want to, which means if they feel like Attorney Mortgage Workout they are Loan Workout and if they don’t feel like modifying a loan they just don’t. Some servicers are telling a client they don’t qualify for HAMP because of LTV issues, well that is not correct as there are no LTV guidelines for HAMP.

So, in summary banks are doing it their own way, like they did when they gave American’s the home loan that they are in today. They are complicating the process and taking advantage again of the American Citizens that just wants to live the American Dream and own their own home.