Maria Said

The Home Affordable Modification Program (HAMP or HMP Fannie Mae Announcement 09-05R) allows home loan servicing companies modify home loans to make home ownership more affordable for financially troubled borrowers. This can be achieved by lowering the interest rate as low as 2%; amortize the loan amount up to 40 years; and reducing the principal amount of the loan.

Is anyone getting these modifications?

Bank of American announced that they have modified loans that have saved financially troubled homeowners as much as $823 million or an average savings of $195 per month. On my current Bank of American loan, this would mean an interest rate reduction of less than 1% without changing the loan term or principal amount. Bank of America has received $52.5 BILLION in TARP money but admits to helping taxpayers to the tune of less than $1 billion!

I personally know of only one person who has received a decent loan modification offer. Litton Servicing offered to drop his 9.25% to around 5%. I’ve checked with friends and business colleagues and they don’t know of ANYONE who has been helped.

Please let me hear from you if you are a loan modification success story. I think we’re all ready for some good news!

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