Many homeowners with the home loan modification program have cited that there are troubles with lenders and they feel that many of the big banks in the modification program aren’t doing all they can to help homeowners avoid foreclosure. Treasury Secretary Timothy Geithner recently said that he feels lenders are doing enough either.
The Treasury Department is set to begin conducting more reviews of lenders who are working with homeowners in the home loan modification program. An article on washingtonpost.com has stated that, according to Mr. Geithner, lenders that are not doing all they can to help homeowners may lose their incentives from the Making Home Affordable Program.
Homeowners in the past have had trouble with the home loan modification program in a variety of ways. Some homeowners have said that they have completed all the necessary steps for a modification on their mortgage only to be denied by their lender for no reason at all.
Also many lenders have homeowners in a trial modification phase for much longer than what is required by the program’s guidelines, and even then some homeowners have been denied a permanent home loan modification.
It’s hoped that this new review process is going to make the home loan modification program more efficient and help more homeowners get a permanent home loan modification and avoid foreclosure.