Attorney General Calls for Changes to Home Loan Modification Programs
The concept of the home loan modification is relatively new to American society and to the legal and business communities, and it stands to figure that as the first wave of home loan modification programs begin to mature, some will notice aspects of them that they’d like to see changed. Given the reactionary nature of the birth of this notion to begin with, the fact that some would like to add or subtract certain tenets should not come as a surprise.
One of the people who’d like to see some changes is the Attorney General of Arizona, Terry Goddard. He put forth some thoughts recently at a foreclosure workshop in Phoenix, and AZCentral.com provided some of the highlights of the points made:
“1. Not count towards servicers’ commitments or include in calculations of a re-default rate any modifications that do not lower borrowers’ monthly payments. Modifications that result in a higher payment due to capitalization of arrearages and fees are unlikely to be a solution for borrowers.
2. In order to move borrowers into sustainable mortgages, servicers must begin to forgive feesand, when appropriate, reduce principal and not just reduce interest rates and extend terms. Throughout this crisis, servicers have responded by taking half steps in hopes of an imminent or near term recovery in the housing market. It is time to recognize the reality of the situation, accept losses and move on. This is particularly true for Payment Option ARMS, many of which will require a reduction in principal in order to achieve a sustainable modification.”
There were several points made, but the overall point of the ideas was that the process should be streamlined and simplified. Whether that happens or not remains to be seen, but in the meantime, many people do not have time to wait for the political haggling to finish. If that includes you, contact a home loan modification attorney at Phillips & Associates today to schedule an initial consultation and to work towards the real possibility of saving your home.
Tags: attorney general, defaults, foreclosures, home loan modification attorneys, home loan modification program, mortgages