The influx of mortgage foreclosures in the United States seems to have no end in sight. In an effort to motivate mortgage lenders to actually cooperate, the Federal Government offered lenders cash incentives, up to $1,000 per modification, if they would help prevent the loss of a home by permanently modifying a homeowner's mortgage payment. But a certain set of lenders have done so little to help the foreclosure crisis that the Government will no longer offer them those incentives.
According to a release by the Treasury Department, Wells Fargo, Bank of America and JP Morgan Chase & Co. failed in helping people permanently modify their mortgages. Their failure was so abysmal that the government has pulled the plug on the lucrative cash incentive, although the money still lives on for other, more cooperative lenders. Out of the 1.6 million homeowners who began in the program, roughly 850,000 of them have dropped out as of April 2011.
The issues involved reach beyond un-cooperation; the Treasury found that the lenders wrongly disqualified many people from the program. Numerous borrowers have complained that the banks have either lost documents or been completely unresponsive to their modification requests. Banks, however, blame homeowners for not submitting needed paperwork to complete the modification.
On the other side of the coin, those who were actually accepted into the program received interest rates as low as 2 percent for five years, with a median savings of $526 per month. If you have applied for a mortgage modification and believe that you were denied unnecessarily, contact a Jacksonville Foreclosure Lawyer or a Florida Foreclosure Lawyer today to explore potential remedies or what other foreclosure alternatives may be available to you..
