Mortgage Companies Not Honoring Home Loan Modification Plan; Lenders Only Honoring Temporary Modifications

The home loan modification program is poised to help over 600,000 homeowners who are struggling with their mortgage but lately mortgage companies have come under fire for supposedly only allowing homeowners a temporary home loan modification. The Treasury is said to be sending teams to the biggest mortgage lenders to ensure the home loan modification program continues to run smoothly, but there is still a lot of finger pointing going around.

The home loan modification program is supposed to change a homeowner’s mortgage payment to around 33% of their monthly income for a trial period and if the homeowner makes the mortgage payments on time then there is to be a permanent change in the mortgage payment, but banks are said to be stopping the program after the trial period.

Many homeowners argue they are being taken advantage of and instead of allowing their home loan modification to become permanent mortgage companies are returning to the homeowners old payment plan or starting foreclosure proceedings.

The big mortgage companies are arguing their innocence and make just as good of a point as the homeowners when they say that the homeowners who qualify for the program aren’t filling out their loan modification papers correctly or at all. The lenders are also sighting the amount of homeowners who owe more than their home is worth will not benefit from the home loan modification program and the real cause of the trouble stems from unemployment.

However, in terms of the home loan modification program there are still hundreds-of-thousands who qualify but haven’t taken the steps to modify their home loan. The home loan modification program is still running and now the Treasury is getting more involved and looks to sort out the problems be they with the homeowners or lenders. So, anyone looking for a home loan modification needs only to consult the extensive resources available and put in the work that goes along with the process.

Finding low 5/1 adjustable rate mortgage options is no longer as hard as it used to be.  Some looking to get in a low rates might want to try some of the many internet resources that are available.  It will likely be the case that many can lock in under 3% in June 2012.