Obama Administration Targets 500,000 Mortgage Modifications

The Obama administration set the goal to have 500,000 or more loan modifications by November 1 of this year, including those homeowners in San Diego and Orange County, California. The current calculate is that around 200,000 loan modifications are being processed nationwide. Many of them are being processed in Southern California. San Diego has seen a surge of loan alteration candidates as a consequence in the decline in the economy, bad loans, and the falling housing prices.

Many loan modifications fail due to without of qualifying, time delays while the homeowner is in foreclosure, or without of skills by the loan alteration company. Many San Diego and Orange County loan mod companies have been shut down recently due to illegal practices. We are familiar with situations that the lender has foreclosed while the homeowner is in a alteration, so despite the effort on the homeowners part, the home may nevertheless be lost.

Loan alteration servicers recently met with the Obama Administration officials currently participating in the Obama alteration program. The largest complaint by loan alteration candidates is in the delays in processing their loan mod applications. These modifications can take up to 6 months to get by in San Diego, leaving homeowners in the darks whether the alteration will be approved, and if will meet their needs. [T]oo many homeowners are at risk of foreclosure right now, Treasury Secretary Tim Geithner said in a statement after the meeting. Todays meeting was an opportunity to clarify ways to accelerate the program and bring relief faster.

So far the alteration program put in place in February this year has not been effective, admits the Obama Administration. Our mortgage program has truly helped to modify mortgages for a lot of our people, but it hasnt been keeping speed with all the foreclosures that are taking place, Obama said last month. San Diego loan alteration is nevertheless a viable different for San Diego homeowners who wish to keep their home, despite their negative equity position. Keep in mind that if your home is upside down, it will likely to keep so for years to come.

Suggestions by the loan servicers handling the loan modifications suggested a streamlining the paperwork and creating an online presence to ease the submission of the paperwork. Sanjiv Das, chief executive of CitiMortgage, said: Todays meeting was an important step toward the administrations and our shared objective of improving the effectiveness and efficiency of the Make Home Affordable mortgage alteration program.