Home Loan Modifications Not Happening For People that Need it Most

Home loan modification controversies still reign supreme among bank customers. Since the housing market crisis, programs such as the Home Affordable Modification Program (HAMP) and others have been instituted to help slow the massive rate of foreclosures. Banks are being criticized and pressured to follow through with these programs because homeowners are claiming they're not helping.

A townhall meeting is planned for tomorrow night in San Jose to tackle this issue. The local grassroots organization planning it is called Homeowners in Action. They are focused on exposing the harsh realties of unfair bank practices when it comes to home loan modification policies.

The loan modification program set up by the government last spring has only "permanently" helped 170,000, according to their last statement. When compared to the foreclosure rate in February alone, 170,000 saved only accounts for just over half.*

When compared to the first 2 quarters in 2009, 170,00 only covers 11 percent of that total of 1,528,364. Add in the last two quarters of 2009, and the previous years when foreclosures started rising exponentially in 2006 and the percent decreases dramatically.*

PRWeb reports on a woman who applied for a loan modification that took 1 year to complete, until finding out that they only modified her mortgage payment by $20 a month. She feels foreclosure is now her only option.

“The bailout is taxpayers' money. It needs to get out to the people on Main Street to preserve these homes, to protect these neighborhoods," stated California Assemblyman Alberto Torrico.

Chicago has been one of the worst areas in the country. Chicago's Cook County had almost 10,000 foreclosure filings in February. The most recent HAMP release that covers the permanent number of loan modifications in all of Illinois totals only 8,392 for the past year, not even enough to cover the Chicago area for 1 month.

Perhaps more organizations need to join together and inform distressed homeowners about what happens behind the closed doors of big banks. The programs set in place might not be the problem. The main issue seems to be the banks aren't implementing the programs and aren't using the tax money given to them to prevent rising foreclosure rates.

Source: PRWeb

*Data Source: Realttrac

Written by Amy Munday
Huliq.com

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