Loan Mods MAY Be Easier

Today the US Treasury Department issued updated rules for the Home Affordable Modification Program (HAMP) that require large lenders to provide and maintain a single point of contact for borrowers through the entire loan mod process. This should make things a bit easier in keeping track of the progress of your HAMP loan mod while it is under consideration. It should also make it easier to communicate back and forth with your lender when pursuing a HAMP mod. A word of caution, however: this new rule only applies to the largest loan servicers. That is defined as those servicers with a program cap of a minimum of $75 Million. However, Treasury's also "encouraging" smaller servicing firms to also participate. Whether or not they do so remains to be seen. This new rule also applies to Federal short sale and unemployment-related home programs, more formally known as Home Affordable Foreclosure Alternatives (HAFA) and the Home Affordable Unemployment Program (UP).The new rule also doesn't apply to second lien situations that may be covered by other Federally supported programs.
The way it works, basically, is that not later than September 1, 2011, a servicer MUST assign a relationship manager to all borrowers who may be eligible for HAMP mods, and by November 1, must assign by November 1, a relationship manager all borrowers who are either in a HAMP, HAFA or UP plan, or have executed a short sale contract or deed in lieu agreement. Once the relationship manager is assigned, the rule goes on to set specific requirements of how the servicer/borrower relationship must then proceed. For the details, check with your servicer or try the US Treasury (USTreasury.gov website; then go to Making Home Affordable tab).

As always,
Good luck.