Loan Modifications: Large Servicers Slow To Respond

The Seattle Time has published an article on current loan modification statistics.

Here is the link to the article: www.seattletimes.nwsource.com

Over the past several months, we have observed that the attitude of major lenders has changed toward loan modifications. In late 2007 through 2008, lenders seemed to respond fairly well. However, in 2009 through 2010, lenders seem to be very slow in responding.  As a result, homeowners have become very frustrated with the process.

It is not uncommon for a lender to take several months to respond and will often times tell the homeowner that they did not receive the information or that the file was “lost” or that the file has been reassigned.

Homeowners seeking a loan modification need to be aware that the process sometimes take a several months and that at the end of the road, there is no guarantee what will happen. As you can see from the Seattle Time Article, some lenders modify a much smaller percentage of residential loans than others.  Therefore, the likelihood of any particular homeowner modifying their exist loan will vary greatly depending on the lender and the homeowner’s own circumstances.