Short answer: Not many. On Monday, June 21, 2010, the Department of Housing and Urban Development (HUD) released a monthly report that revealed more loan modifications are canceled than approved. This comes as no surprise to anyone who’s staying on top of the HAMP program. And falls far short of the expectations of Obama and the Treasury when the much bandied about program was announced. How clearly I recall what grandiose goals they had.
At the end of May 2010, over 340,000 borrowers had successfully completed a mortgage modification to reduce their payment under the Home Affordable Modification Program (HAMP). However, more than 429,000 trials had been canceled. That’s an increase from 277, 600 cancellations in April. About 468,000 borrowers were still in the trial phase of a modification and 190,000 had been stuck in a trial for at least six months because banks are moving so slowly.
These figures do not include modifications done outside of HAMP.
If you are working on a loan modification with your lender, get ready for a long term commitment to constant contact with your lender, delays, lost paperwork, and possibly denial. You can improve your odds of a successful modification by being very diligent with your documents, and keeping very accurate records and copies. Place your name and loan number on each piece of paper you send to your lender. Faxing is an option, but it is quite easy for a fax to get lost in transmittal. We’ve all heard that before. But receipt is tough for the lender to deny when you have a certified mail return receipt card.
Are you in Loan Modification Hell? Read borrower frantic stories and learn from their experiences.
Until my next post . . .
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