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Digital News Report – The government home loan modification program has given hope to many homeowners and caused problems for others. The Obama administration says the program is on target to help the 7 to 8 million struggling homeowners it was designed to help.
Not every homeowner can qualify for a loan modification under the program. Even after the initial modification, the borrower must still provide paperwork during the trial period before it becomes permanent.
Banks are not required to work with the homeowner, but the program does provide incentives for both sides.
If their customer is having trouble making their payments, Chase Bankis asking them to contact them immediately. “There are many possible outcomes and we evaluate each situation on a case-by-case basis,” the bank said in a statement. “Loan modifications are the most common option that may be available to help customers like you.”
New rules should help speed up the process. Banks should respond to the request within 10 days and provide an approval or denial within 30 days. The borrower then begins a three month trial period.
Bank of America, which says they have completed over 750,000 modifications since 2008, is working to implement the rules, according to the bank.
The program is free to the homeowner. Government approved councilors are paid by the government.
By Tina Brown