Loan Modification

Propping The Door Open: Treasury Orders That Trial Modifications Won?t Expire

By Karen Oakes, Southern Oregon Mortgage Law Attorney

In a surprising move, the Treasury Department issued a news release of a new directive that any trial mortgage modifications which are set to expire by 1/31/10 be continued AND the servicers cannot cancel the modification for any reason other than that the property doesn’t meet the property requirements under HAMP.   HAMP (Home Affordable Modification Program) loan mods have received scathing reviews from this site and from the Congressional Watchdog Panel overseeing the success of the program (less than 2% of homeowners in distress have received a permanent loan modification).

Earlier in December, HAMP announced a waiver of escrow account requirements on first lien home equity lines of credit and home equity loans under certain circumstances, all in an effort to make the process easier on homeowners to stay in the HAMP program.

Related posts:

1. Abysmal Record on Modifications Prompts Additional Attention
2. Watchdog Panel Says Few Getting Mortgage Help
3. TARP and HAMP Require That Foreclosure Be Suspended

Full post as published by Mortgage Law Network on December 29, 2009 (boomark / email).