Three large banks have failed to live up to new guidelines enacted by the Obama administration intended to give relief to people facing foreclosure. These banks will not be eligible for incentives until they improve their practices.
Wells Fargo, Bank of America and JP Morgan Chase were found to be in need of “substantial improvement” under the Home Affordable Modification Plan. Under the plan, a bank receives incentives if they help homeowners modify their mortgage loans. Modification of mortgage loans under HAMP can save a person up to 37 percent a month. Without a loan modification, homeowners must hire foreclosure attorneys to assist them in keeping their homes.
The HAMP program, which is voluntary, has received criticism because of less than stellar performance. Some Republican House members have proposed legislation to end the program but have no support in the Senate.
Millions of homeowners face foreclosure and must hire foreclosure lawyers to possibly keep them in their houses. Unforeseen circumstances like unemployment, high medical bills and the rising cost of necessities can make it hard for homeowners to make monthly payments. Sometimes a bank is unwilling to modify a mortgage, because they earn more money from foreclosure than modification.
There are also thousands of mortgage holders who have been subjected to wrongful foreclosure. A foreclosure attorney is qualified to challenge the mortgage lender who has negligently placed a property into foreclosure. These negligent practices are being challenged on a Federal level.
