In February 2009 President Obama launched a plan to help homeowners who were struggling with their monthly mortgage keep their homes. The " Making Homes Affordable Program" was designed to help homeowners change their loans to a lower interest rate they could afford to keep their homes. Sounded like a good thing right?
In California alone 46 percent of borrowers were denied immediatly for loan changes. This is out of 568,630 that were requesting the change, while 23 percent of the borrowers received a permanent mortgage change. Caught in trial modifications were a third of applicants. They had to to prove they could handle the loan, or had their modifications cancelled. While homeowners are in negotiations with their servicers for change, their homes are being foreclosed on.
What would happen if I stopped paying my taxes for let's say, seven years? More than likely I'd end up in jail for tax evasion. I should be held accountable for my actions, right? So why are not these financial institutions such as Bank of America, Chase Bank and Wells Fargo being held accountable for their gross actions by deliberately ignoring what the Making Homes Affordable Program was designed to do, help families keep their homes.
As the economy continues to suffer and more and more people are loosing their jobs, the program should at the very least be reviewed again and modified to help the growing needs of homeowners. Instead homeowners are getting hit blind sided with a foreclosure or short sale on their homes.
If you are applying for a loan modification, sit down and make out a game plan. You want to know exactly how you are going to approach them. Being trained in minimizing loss for their company, they will try to get the most amount of money out of you as they can, or declare that your particular case is unworkable and foreclose on you. That is how they diminish loss. Is this how they are making homes affordable, by foreclosure?
Make sure you have everything that relates to your income and expenses. Gather at least two years of tax returns, two months of income, two months of bank statements. Some may ask for more than two months. Put together all your bills, paid or not, such as utilities, credit cards, auto payments, child support and medical bills. A representative from the bank will contact you and let you know what documents are needed.
If you are getting the run around, file a complaint against the bank. Consult a third party for help. There are many non-profit housing counselors, attorneys and for profits that are very experienced in loan modifications and loan workouts.
Don't give up trying to keep your home. Keep calling requesting the change. Call everyday if you have to. Like so many people out there, we are also in the same situation.