Conn. Foreclosures Surge 53 Percent In Q1
The foreclosure problem won’t be going away anytime soon. Federal officials said this week that more trial home loan modifications offered to struggling homeowners are being canceled.
The U.S. Treasury said 277,640 trial loan modifications were cancelled in April compared to 155,173 in March. Why?
Mortgage servicers are disqualifying borrowers who have not met the income documentation guidelines or who can’t keep up with the reduced monthly payments under the modified loans.
Apparently, the federal program known as the Home Affordable Modification Program, or HAMP, will require homeowners to prove that they have the income to qualify for a mortgage modification starting in June. In the past, mortgage servicers and lenders were taking the word of borrowers that they had a certain income level in order to reduce their mortgage payments.
This comes as Connecticut’s foreclosures spiked in the first quarter. There were 2,166 foreclosures statewide in the first three months of the year, a 54 percent jump from 1,410 during last year’s first quarter, according to The Warren Group.
June 28th, 2010 at 5:28 pm
Most consumers/home owners do not qualify for this program. I know this because I’ve tried for 10 months to qualify. I started out with a credit score above 720 and lots of collateral. I submitted and re-submitted. Each time, the banking entity asked for more information, different information, or said that my application was outdated and I needed to start over with a new application. As time passed, my financial situation deteriorated. Then they began to say I didn’t qualify because my ability to repay the mortgage was in question. I finally gave up.