Modified Loans Mired Due to Dereliction of Duties

The Obama Administration has taken a beating over their (HAMP) Home Affordable Modification Program. The actual numbers of all of the people that received assistance from the program paled in comparison to what the initial estimates were. New complaints are now being levied by homeowners who feel lost in a complicated and misrepresented system that appears to be totally broken.

An example of one instance that was reported in Oklahoma was where a homeowner was accepted into trial modification by J.P. Morgan Chase. The homeowner's payments were reduced to $767 per month. Six payments were made and then the homeowner received a notice saying that they owed over $4,000 and that if it was not paid immediately that the property in question would be foreclosed upon. When they contacted the bank, the bank informed the borrower that they were unable to locate any such notification and told the borrower to disregard the notice. Several days later the borrower was contacted by J.P. Morgan Chase which not only found their clients account but now wanted to inform them that they made to much money to have their loan permanently modified. This came to the borrowers surprise since they were unemployed and receiving unemployment benefits.

The final blow by J.P. Morgan Chase was another notice issued by them to the borrower letting them know that not only were they denied for permanent modification, but the notice also informed them that they now owed the difference between what their trial payments were reduced to and what their original monthly payments were. This added up to well over $5,000, and once again the letter was sealed with an "impending foreclosure" as the complimentary close.

As we step into the New Year there is hope that cases like this become exceptions to the norm, but for now there are an endless amount of American's who seem to be lost in a system that was intended to help. It is understood that change takes time, but the question has to asked, when is it time to change?

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