Loan modification stop foreclosure

Written by : George Haughton

Loan modification is designed to stop home foreclosures when used by your lender. Despite this since 2006 Over 2 million homeowners lost their home . The question many continue ask why did so many home loan modification failed to stop foreclosures? Also why do lenders continue to reject request for modification?

The truth is there are more questions than answers to the current foreclosure crisis. In truth a Loan modification is just one solution. Another is forbearance, deed in lieu. short sale or simple refinance.

When it comes to loan modifications lenders continue to take a long time to modify. On the other hand homeowners may wait too long to apply to their lender for help.

Another reason why homeowners failed in these modification can be traced back to the lending restructuring a loan which not affordable. Others got rejected due to high ratios, bills,incomplete documents and no follow through.

However, since 2006 government, lenders, housing counselors have tried different home saving techniques hoping to make a difference, but still unable to stop home foreclosures. The latest product being tried is the streamline loan modification program .

Currently congress is debating many solutions,one of which is the streamline modification . With all these agencies working together fora solution by using the new streamline process.we hope the outcome will manifest itself quickly to prevent any more foreclosure .

Speaking of government, HUD website provides a complete step by step process for those applying for a loan modification . However,there are few problem doing it yourself. For example,understanding the foreclosure laws involve and the time it takes to get through to your lender. There is a "fire wall" between you and your lender .

Maxine Walters the congress woman tried to help a a couple get their loan modify so she tried to reach their lenders (Bank of America ,Indy mac and Countrywide) she was unable to reach the right person at the lenders that could help the homeowners. Due to her experience Maxine Walters is now working on incentives to help the servicers produce more result.

Therefore, applying for a mortgage loan modification, requires time . Attorneys on the other hand have a system in place to get it done. They, do things like mortgage audit, looking for loan violations with in your original package in turn use it to negotiate for a better rates and faster approvals. They also have the various telephone numbers to reach the various right lender contact. This is just few of the options they can use that give them a better approval rate.

HUD WEB SITE

Http://www.hud.gov/foreclosure/foreclosuretips.cfm