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Mortgage Lenders Encouraged to Modify Burdensome Loans

With so many struggling to make ends meet, the federal government has implemented a mortgage modification program.

2011-01-07
January 07, 2011 (Press-News.org) Many homeowners have been facing the very real threat of losing their homes during this recession. Those who purchased homes now find themselves in mortgages for more than their home is worth. As the economy struggles to rebound, home values remain low across the country. Jobs which used to be plentiful now offer a fraction of past wages. Finding money to pay a costly mortgage every month has become a challenge for many families.

With so many struggling to make ends meet, the federal government has implemented a mortgage modification program. Borrowers who have lost their jobs or seen a reduction in income will be eligible for reduced or suspended mortgage payments if they meet the program's requirements.

Over $75 billion has been set aside for homeowners in financial trouble. Even with the available funds, the Treasury Department notes the program has assisted about 650,000 homeowners since taking effect in March of 2010.

Mortgage companies have been under scrutiny recently for foreclosure practices that may not have complied with the law. Now the administration is encouraging lenders to make this process more efficient for those who qualify. Despite this aggressive campaign, many borrowers are having difficulty navigating through the process. Applications filed after the program was announced still have not been approved. Lending companies seem to be dragging their feet in making modifications to those who qualify for the program.

Much of the focus is on homeowners who are underwater. According to CoreLogic, an organization that compiles and tracks housing trends, 22.5 percent of homeowners are in underwater mortgages. These homeowners are thought to be the most likely to simply walk away from situations that they feel will take too long to correct.

If you are having difficulty making your mortgage payment, speak with an experienced attorney in your area to understand what steps you need to take to remain in your home. If you are unable to receive a modification on your mortgage, you may be eligible to file for Chapter 13 bankruptcy. Every situation will be different, so be sure to address this issue as soon as possible.

Article provided by Illini Legal Services
Visit us at www.wardbankruptcy.com


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[Press-News.org] Mortgage Lenders Encouraged to Modify Burdensome Loans
With so many struggling to make ends meet, the federal government has implemented a mortgage modification program.