No surprise here– if you are one of the millions of Americans who tried to modify your loan in the HAMP program (Home Affordable Modification Program) in the last 3 years of this program, you would have experienced this. The program promised much and delivered little. The program promised “carrots” to the lenders, in the form of cash payment for loans modified. But, there was no “stick”, or enforcement to the program. Mortgage loans are being handled by companies called servicers, who get paid for monitoring the loan and keeping track of payments. Servicers seem to have more incentive to just keep the staus quo and not modify peoples’ loans.

As a bankruptcy and foreclosure defense attorney, I saw many people who tried to get their loan modified, only to be frustrated with the process. According to the study, many of the servicers were understaffed and not well-equipped to handle so many applications.

Here is a link to the article:
http://www.chicagotribune.com/classified/realestate/foreclosure/ct-mre-0923-podmolik-homefront-20120920,0,7485627.column

If you have questions about loan modifications, foreclosures or Bankruptcy, call us.

Daniel J. Winter
Law Offices of Daniel J. Winter
53 W. Jackson Boulevard
Suite 725
Chicago, IL 60604
312-789-9999
djw@DWinterLaw.com
BankruptcyLawChicago.com