Banks Fail To Modify Loans:only 9% get chance

Posted on August 4th, 2009 in All Articles.

By Phil Buoscio
Those in foreclosure, or teetering on the brink shouldnt hokd their breathe waiting Obama or Santa or anyobe else to rescue them.

Fact: as of august 11 tge treasury that the Only 9% of potential homeowners who need help were helped by federal program to modify loans.

This is frustrating because for all the money that the big four received they have not done much. We find Bank Of America recalcitrant to deal with on short sales…so you would hope they would be modifying loans — but it turns out they aren’t. They are the worst at 4 %. Wells Fargo is also failing at 5%. How did they get to use our tarp money and get to be so incompetent anyway is a good question for Durbin or Burris or Guitierrez. If you bump into them during august recess ask them. This poor success of modifications of those eligible is inexcusible and creating Foreclosures that impacts all of us.

Just remember this when you buy a home: Dont use Wells Fargo or Bank of America if you can use Citi. Citi is converting 15 percent – there’s impact in those numbers. Lives. Families.

Excerpt below from todays new york times:

The release of data showing the progress of individual institutions is part of a Treasury effort to push banks to modify loans faster.

Under the $75 billion program, homeowners whose monthly mortgage payments are more than 31 percent of their gross income are eligible for modified loans, with interest rates as low as 2 percent.

Bank of America has modified only 4 percent of the eligible mortgages, and Wells Fargo has modified 6 percent.

Citimortgage, a unit of Citigroup, fared better at 15 percent, while JPMorgan Chase was among the most successful, modifying loans for 20 percent of eligible borrowers.

All four institutions received federal bailout money.