The Treasury Dept. said it will publish a list in December of mortgage companies that are not helping borrowers who are at risk of foreclosure. They will also withhold incentive payments for modified loans that have not been completed.
The Treasury Dept. projects that 375,000 homeowners would hit the deadline to convert to permanent modifications by the end of the year. "We now must refocus our efforts on the conversion phase to ensure that borrowers and servicers know what their responsibilities are in converting trial modifications to permanent ones," said Phyllis Caldwell or the Treasury Department's homeownership preservation office.
The mortgage companies are saying that they are having trouble getting borrowers to return all the documents that are needed to complete the modifications. In some cases the documents were not always complete and borrowers did not understand that the loan process was not done until all the documents came in.
Freddie Mac has hired an outside company to help. Titanium Solutions Inc., will send real estate agents door to door, around the country to knock on borrowers' doors and help them complete the paperwork.
Homeowners who may be eligible for assistance can call 888-995-HOPE, or visit the Web site.
Comments
I can't believe America has come to this. We have the President "shaming" the big Banks he just bailed out. The small Banks and Credit Unions will be the heroes in all this. Assuming they can survive the foreclosure and repossession wave (see: repofinder.com). Break up the big Banks and let the free market be free.
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