Lisa Simpson
May 27,2010
In: Foreclosure, Mortgage

Modification of Mortgages Plagued with Lengthy Delays and Denials

The modification programme of the Federal Government is not making much headway thanks to the lengthy delays and denials on the part of the lenders. At the end of the trail that has failed, the borrowers find a long bill.

One victim, Patrick Dinunzio aged sixty, a resident of Romeo, found himself owing the lender over $21,000 after being denied permanent loan modification althoughh is earnings remained the same to what it was when the trial modification was granted to him. They strung him along for nine long months causing him to fall further behind.

At Michigan in April 30,625 modification of loans had been completed. This was a reduction of 9% from the previous month. In Michigan about 90,727 borrowers are qualified for modification of their loans as per the findings of Free Press.

Phylis Caldwell of Homeownership Preservation Office of the Treasury said that their focus was on improving the experience of the borrowers and making the servicers more accountable for their actions. Eight of the largest loan servers would be expected to report by July to the government.

Consumer attorney Adam Taub of Southfield said, “The story is always the same. They are stringing people along by telling them not to make payments or having them make reduced payments and then denying the home loan mod. Then are people are even closer to foreclosure.”

The lenders however argue that they are doing their best to help the troubled borrowers.

Dinunzio is anxious about his farmhouse dating back to 1901 situated in Romeo. To reach it one has to go past a pheasant ranch, motley fields of crops and a bumpy dirt track covering 2 miles. He was once a machinist but after being laid off he is pursuing his work as an artist. He has been living with his wife on the property covering 24 acres for the last seventeen years. It was the loss of job followed by two refinancing that has brought him to this stage of seeking loan modification.

He has been granted a temporary modification that has brought down his monthly payment from $1,720 to $697. The calculation was made on his income. This stage continued for 9 months although the government rule is for 3 months. It was only this month that CitiMortgage has denied him the permanent status.

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