From Tami Luhby at CNNMoney: 450,000 at risk in foreclosure-prevention program
Hundreds of thousands of troubled homeowners who are making lower mortgage payments on a trial basis are at risk of being kicked out of President Obama's foreclosure-prevention program.
Companies that service the mortgages have until Jan. 31 to review all trial modifications that have been underway for several months under the Home Affordable Modification Program (HAMP).
The goal is clear up the backlog of borrowers stuck in trial modifications.
"About 450,000 homeowners currently have HAMP trial modifications and have demonstrated a willingness and ability to make trial payments for at least three months," said Richard Neiman, superintendent of the New York State Banking Department.
"Now, unfortunately and very alarmingly, these same homeowners face the prospect of foreclosure strictly on account of documentation issues," he said.
"This is a real concern to borrowers, particularly borrowers who've continued to make payments for three, four, five, even seven months," Neiman said.
I hear from readers all the time that they have sent their required documents in to their loan servicers several times to end up being told that it was never received.
This 30 day ultimatum may help get the banks moving, but really they need to get organized, hire more people, or provide better training to their employees. Sometimes it just seems like they are playing games so they don't have to do the modifications.
Let's get the show on the road bankers! We allowed you to get TARP money to keep from falling. Get these people the help they need permanently before they strike back and let you fail for good.
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