Why Don’t Banks Have Incentive to Grant Mortgage Modifications?
When the Obama Administration introduced the HAMP program to provide mortgage modifications, people were very excited. This program was designed to reduce the staggering amount of mortgage foreclosure that has been taking place since the collapse of the housing market. A mortgage loan modification was a great way to get homeowners out of predatory loans and keep them in their homes. However, the banks have not seen fit to go along with this, and would rather see mortgage foreclosure rates continue to grow than grant mortgage loan modifications to people in need.
Many people would contact their bank to inquire about mortgage modifications, and then apply for one. However, the banks have been denying nearly 80% of all mortgage loan modification applications! Why is this you ask? It is because they simply have no incentive to grant mortgage modifications to homeowners in need.
These lenders issued predatory loans to thousands of people, knowing that they would not be able to keep up with the payments. Excessive fees and high interest rates have been a huge burden on homeowners. However, it has been very profitable to the banks. Mortgage foreclosure was always seen as the end, where they would take the property, turn around and sell it again with another predatory loan. Offering mortgage modifications to people that would eliminate fees and lower interest rates might be great for the homeowner, but not great for the bottom line.
Of course, not wanting to appear like they simply had no intention of helping people with mortgage modifications, the banks would approve a lot of temporary loan modifications to people, as sort of a trial run to see how it went. The idea behind this was if homeowners kept up with their trial payments, then at the end the temporary modification would become a permanent mortgage loan modification.
This never happened, however, and once the temporary time had passed, the loan reverted back to the old predatory standard, only this time with additional fees of what had not been paid during the time of the temporary mod added on. What was supposed to be mortgage modifications ended up pushing many homeowners closer to mortgage foreclosure.
Once homeowners were rejected, they were told there was nothing they could do but simply apply again, and they should only speak with their lender about it, nobody else. It doesn’t have to be that way. People that are sick and tired of trying to negotiate with their bank have options in the form of forensic loan audits designed to point out violations caused by the banks. Combined with a qualified loan modification attorney, many homeowners have suddenly been taken seriously by their banks, and have been approved for a permanent mortgage loan modification.
If you are tired of negotiating with your bank for mortgage modifications and would like to strengthen your argument for why you deserve a mortgage loan modification, do not hesitate to contact Tila Solutions. Tila Solutions looks out for the homeowner. A Tila Solutions Consultant is available for people by telephone at (702) 508-0335. Or you can visit the Tila Solutions website at mortgage modification. They will help. They are not funded by the governments or the lenders. They are on the homeowners’ side.
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