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48-percent of trial loan modifications were cancelled. Here is what to do next.

Half the homeowners who have been awaiting decisions on permanent mortgage modifications for three months or more, according to a government report, are serviced by just two companies, Bank of America and JPMorgan Chase.

Backlog of 118,000 borrowers in trial loan modification program

Through July, the government’s mortgage-aid program had a backlog of 118,000 borrowers whose trial plans have run at least six months — three months past the typical duration for determining if they qualified for a permanent modification, the government said Friday. Bank of America and JPMorgan Chase, the two biggest banks, account for about 59,000 of the cases.

Under the government’s Home Affordable Modification Program (HAMP), borrowers are supposed to get permanent modifications if they keep up their adjusted payments for a three-month trial. // Article continued after video //

Has your loan modification request been in limbo, denied or cancelled? Watch this video

Loan modification expert, Mike Rockwood, and author of the recommended loan modification workbook, explains how to use a handful of proven strategies to escalate your demand for attention and action on your loan modification request.

These strategies will help you overcome the stall tactics, long delays, wrong answers, incompetent employees, rejection of your permanent loan modification or cancellation of your trial modification.

In the video, Mike mentions a government agency you can contact to complain, namely, The Office of the Comptroller of the Currency (OCC). Click here to read more about the OCC agency and what it can do for you

Click here for more Q&A Video Coaching segments that will answer your urgent questions and give you proven strategies to fight for your loan modification.

FYI: As a last resort and for added protection if the clock is ticking against you towards a foreclosure sale date, learn how to stop foreclosure in a day to buy more time to work out a solution.

Why the excruciating delay?

Servicers blame delays on borrowers who don’t provide necessary documentation and on the government’s frequently changing requirements. Borrowers complain that the servicers repeatedly lose the paperwork they send and don’t return calls.

Friday’s report said the number of borrowers who have been in trials for six months or more had dropped from 166,000 in June and that servicers indicate decisions on those remaining should be made in August.

When will borrowers get a final answer?

Bank of America expects to make decisions on most of them in August and September, says spokesman Rick Simon.

BofA’s total number of customers in trial modifications dropped from 121,000 in June to 85,000 in July as decisions were made on who qualified for permanent modifications, he says.

JPMorgan Chase declined to comment on whether it will resolve all of the older trial modifications this month.

“We’re reducing the number of aged trials each month, and we’ll continue do that,” says spokesman Tom Kelly.

Large number of cancellations

The government’s report also shows nearly half the 1.3 million homeowners enrolled in the program since March 2009 had been dropped by the end of July.

About 630,000 homeowners had seen their trial modifications cancelled, while about 435,000, or roughly a third of those who enrolled, had moved into permanent modifications.

Those in permanent modifications are guaranteed lower payments for five years and then fixed terms at current rates for the life of the loan.

The median monthly payment decrease for those in permanent modifications was $513, or 36%.

Before completing and sending in a loan modification package, you may want to obtain some coaching to combat the stall tactics banks/servicers are using to cut to the front of the line of other applications and get approved faster

Click here to get proven help with your home loan modification

Homeowners – Need Some Sound Advice?

Get Out of Debt Workbook
Seasoned debt expert shares several little known but highly effective techniques guaranteed to get you out of debt fast – no matter how much you currently owe.
Stop Foreclosure
Get more help on fighting to stop a foreclosure. A little-known government program will stop a foreclosure in less than a day without an expensive attorney. Ideal for you if you have been rejected for a loan mod, in a trial loan modification or unemployed to buy valuable time.

Legally Restore Your Credit
If you are visiting this blog, you likely have mortgage lates, which are a big blemish on your credit report. Once you resolve your mortgage situation, you can legally remove those mortgage lates and all derogatory credit from your report without having to hire an expensive attorney or credit repair service.

Technorati Tags: trial loan modification delays, bank of america trial loan modification delay, chase bank loan modification delay

Related posts:

  1. HAMP trial loan modifications only helping 20-percent of eligible homeowners so far
  2. 14-percent of Wells Fargo trial modification customers fail to make all three payments
  3. Only 4 percent of home loan modifications are permanent
  4. Number of homeowners underwater could soar from 23-percent to 40-percent
  5. Cancellation of trial loan modifications affect over 122,000

Tags: bank of america trial loan modification delay, chase bank loan modification delay, trial loan modification delays

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4 Responses to 48-percent of trial loan modifications were cancelled. Here is what to do next.

  1. Jim on 13/09/2010 at 19:34

    Bank of American Deceived and Lied

    B of A used deception and flat out lies to take my home. They are predators and they need to be stopped.

    I received notice of my “approved” loan modification in August of 2009. I gave them $2800 down payment requested and have made all payments ( 10 in all ) for the modified amount. After six months I mysteriously received a monthly statement from B of A for the amount due on my mortgage. I had never received a statement like this before. The statement show a past due amount and the payment was for the old loan amount. I immediately called them to explain that their records were incorrect as I have completed the loan modification process. I have the notarized copy of the loan docs to prove it.

    The customer service person on the phone pretended to be puzzled by the apparent mixed up and told me that they would contact the negotiator for my account and have them contact me. Needless to say, no one ever called back. This scenario repeated itself four more times over the next four months.

    Then, out the blue, I get a letter stating that they intend to foreclose on me. The letter, which is titled “Notice of intent to accelerate”, states that I owe them over $36,000.00 in past due balance. Obviously, there is no way that I can pay that so my house is as good as gone.

    I paid them the amount that I promised to, on time, every month for 11 months now but that doesn’t matter. They are dead set on taking my home. This whole modification process is nothing but a scam. They are taking my money and making false statements about the status my account.

    I am worse off than before as now I owe more than ever. I am now officially underwater so selling the house which was a possibility before is no longer an option.
    If anyone has any influence over B of A and their executives please put a stop to this so no one else is deceived and loses their home unnecessarily.

  2. Margaret Snodgrass on 17/09/2010 at 22:25

    My name is Margaret I got behind on my mortgage last year and 13 months ago got offered to participate in the Making Home Affordable plan. I was give a trial period payment to make and in December I was told my modification had been approved and there was one final step which was a phone counseling session, I completed the session and after that spoke to BofA and they said that I would have my loan modification documents in about 10 days, I waited, and waited no documents, I called and called and no was told they were on the way and just keep making my payment till they came and as soon as they came. Sign them and FedEx them back ASAP. Every month my house was listed for foreclosure, my son and daughter-in-law who help me would call BofA and they postponed the sale for another month and said the docs should be coming soon, NO DOCS!! This month when we called BofA they postponed the sale but only for about 15 days this was to the 22nd So today we called to see what was going on and they stated the sale was not going to be postponed and the Making Home Affordable Modification was denied in June months after I was told it was approved and I was told in June, July, August and September to be patient the docs were coming. I was quite shocked. They then said I did not qualify for any other modification programs and that there was noting I could do. One nice lady talked to her manager to see if he could do something but she did not guarantee anything. Another lady said start looking for a place to live. I am 74 almost 75 years old and I have diligently made my modification payments and BofA took my payments and today I learned I now owed them almost $14,000 because I was in a modification and when I do the math I the difference between my payment and the months I was on the plan is about $5,000 they said the rest is fees, that is about $9,000 in fees. I am 74 years old I live on Social Security have a job and baby-sit to make ends meet and unfortunately found myself in an awful situation at this age. I have a house full of stuff and no means to move I was able to see the light at the end of the tunnel in with my new payment and thought I would be set for several years but was I ever surprised. I need help and I need it quickly!

  3. Gail Simmons on 18/09/2010 at 15:10

    So many homeowners are getting jerked around by their lender in getting their loan modification approved, whether by trial or permanent. I have been recommending that homeowners cover themselves by using the stop foreclosure in a day program to prevent the lender from accidentally on purpose foreclosing and forcing them to negotiate with you. Please read this:

  4. Edwin Ware on 23/06/2011 at 08:21

    We are in the same boat as everyone else. We have been getting the mixed messages from everyone. One department does not know what the other department is doing, and no one is writing notes in their systems.

    2009 We started a loan modification with another company, was told to stop paying the mortgage B of A, paid them $2000. Was told by them that the only way to get a new loan was to lied about our income. And then was threaten from this company if we did’n sign this agreement. We told them that we would not lied to B of A and drop this modification.

    While doing all of this, it put us behind on our payments by 8 months. So when we got back to B of A, we were told they would start a modification program to reduce our payment and start over, we have been waiting for over a year. Back and forth, no right answer from anyone. Now they have added several thousands dollars to our late payment account. We have already gone through the tril period like they said. Sent in paperwork and more paperwork etc.. over and over. They tell us that our house is going to be auction off 1st of August. We are trying to stall this. We have received a package from B of A with paperowrk on how to handle the foreclosers. That is itself says they have already made up their mind, and not let us know.

    This has already runied our credit.. we won’t be able to buy anything else. We will have to find a place to rent. We really love our house, would like to stay.

    Please someone help us out..

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