Categorized | Foreclosures, Short Sales

Who to believe?

Posted on 13 December 2009 by Aaron Hofmann

With the Obama administration recently putting forth new guidelines to help address the foreclosure epidemic, there seems to be a lot of finger-pointing going on.

A recent report stated only about 10,000 homeowners have received permanent loan modifications this fall under the mortgage relief plan, with the biggest issue being borrowers getting through their trial modification periods.

The report indicated that 14 percent of homeowners with a mortgage are either late on their payments or in foreclosure, and that number is expected to keep rising as unemployment remains stubbornly high. Compare this to 3.9 million homeowners having receive foreclosure notices this year.

With the release of new guidelines last week, clearly the Obama administration was putting pressure on the banks to step up and start making more progress. The program is voluntary, so ultimately you may see the administration  inpublicizing what percentages each bank is modifying, accepting short sales or foreclosing. Essentially trying to shame them into action.

Since the release of the guidelines and the pressure, the banks have been pushing back. Perhaps they’re better at public relations than modifying loans or approving short sales.

The major banks have been pushing back and reporting the number of loans that they’ve modified and are trying to depict a scenario where they’re doing everything they can but are being held by government bureaucracy and homeowners not providing the documents required.

Homeowners, of course, have been claiming that banks are losing their paperwork.

Who to believe? There’s truth in all scenarios undoubtedly. But the resounding truth is not enough is being done to address this crisis in a constructive and efficient manner.

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  1. Atlanta Loan Modifications and Short Sales - Government Puts Pressure on | Atlanta Short Sales and Foreclosures |Certified Distressed Property Expert | Keller Williams Realty Says:

    […] effort to fix the issues that they so aptly created. As we mentioned in the article, “Who to Believe?“, this will be part of the administration’s strategy to ensure the banks work to help […]

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