Treasury Targets Two Banks for Poor Foreclosure Performance

The Treasury Department criticized JP Morgan Chase and Bank of America over their participation in the HAMP foreclosure relief program and need to do more to help troubled homeowners. Their poor participation in the HAMP program has forced the Treasury to withhold incentive payments from the two banks for the third straight quarter.

The Home Affordable Modification Program provides incentives to banks to rewrite loan terms and reduce monthly payments for struggling homeowners.

Under the HAMP program, homeowners are given the chance to modify their mortgage loans in order to stay in their homes.  Homeowners who don’t qualify for federal assistance may be able to get a mortgage modification by employing a foreclosure attorney.

The Treasury Department said that JP Morgan and Bank of America need to make substantial improvements in the loan modification efforts to qualify for the incentives. JP Morgan risks a permanent reduction in support if significant improvements aren’t made in the first quarter of 2012.

The HAMP program has had lackluster participation partially because mortgage servicers have not always informed troubled homeowners that they are eligible to participate in HAMP. The Treasury began keeping score of the banks and the number of eligible people that have given modifications.

Foreclosure attorneys can assist struggling homeowners with their foreclosures. A foreclosure lawyer will be able to examine and evaluate foreclosure documents to determine what options the loan holder has to prevent an eviction.