Loan Modification Service Sets Unattainable Goals Yet Continues To Try

There are currently two different loan modification service programs available to homeowners who might be facing foreclosure that will help keep them in their homes and their bank or financial institution bringing in money from the property and not leaving it vacant as many foreclosed properties are all across the nation and putting a strain on neighborhoods and real estate agents.

In order to help distressed borrowers, two governments programs were established with a goal of modifying or refinancing troubled loans rather than see them go into foreclosure which is not a win for anyone.  These programs include the HASP – Homeowners Affordability and Ability Plan and the HAMP – Home Affordable Modification Program.

The HASP – which might have the best loan modification program – has set a lofty goal of between 7 million and 9 million loans to be modified in the beginning.  Although the number of loan modifications significantly increased over the past year, the first quarter of 2009 saw only 185,156.  Considering this pace of loan modifications, it would take 12 years – 48 quarters – to complete 9 million loan modifications.  Even if the HASP group doubled or tripled their efforts, their goal would not be met in time to help today’s distressed homeowner or the depressed economy.

The first step in loan modification is to quickly identify an eligible borrower and match them up with the appropriate loan program.  For example, if someone needs an auto loan modification, then they would not be place with a home loan specialist but rather with a financial institution that specializes in auto loan modifications.

By using rule-based systems and decisioning technology, the sophisticated software engines with flexible interfacing allows a loan modification company to capture and integrate lender products, investor programs and federal program guidelines.  This type of software also allows for updates to be implanted within the system which is a good thing because the loan workout programs are becoming a fast paced changing landscape.

Rule-based systems are nothing new and can help scan through thousands of loans every day to find those eligible for a loan modification program.

No related posts.

Related posts brought to you by Yet Another Related Posts Plugin.