Are big banks doing enough to be on the same pace with the government effort to eliviate financial strain on homeowners? While the government is touting a success for the home affordable program (HAMP and HARP), homeowners are far from being p. Data showed that out of the half of million homes went into the trial period of the home affordable loan modification (HAMP) program, only few thousands have been converted into permanent modification. Homeowners are supposed to get all the paperwork in place during the trial period, ready for the conversion. Some argues that many homeowners are not aware of all the paperwork that is required during this stage for conversion. Other argues that servicers are to blame, citing homeowners’ complaints of having to fax paper work multiple times.

The government now has reduced the paperwork requirement and provide 2 month extension to the 3 month trial period to allow homeowners and servicers to get the paperwork in place. The number will be coming out soon to see if this effort from the government is helping in producing more permanent loan modification. Another piece of missing data is how many homeowners are not even aware of the government helping programs. Many large banks handle the home affordable program applicants through the phone only, leaving their own staff at physical branches entirely inadequately trained to help customers on the issue. Recently Gavin Baker sought to clarify these questions. So if homeowners were wondering into a branch asking for the information, chances are they will be turned away because they are not qualified for the traditional loan criteria. After all, traditional refinancing is all the branch staff know. If by shear luck, the person is given a phone number to call, they will have to be prepared for spending hours on the call, listening to automated options and being transferred 4 or 5 times between one place to another just to get the basic information about the program and to start.

So are you still wondering why it is so difficult to get loan modification? Clearly the banks, especially the major banks, are not doing enough to help homeowners. There are research that able that servicers make more money in a wants to foreclosure than by helping homeowners through the loan modification program. The $1000 government incentive for Servicers is clearly not enough. Additional information is available at The LeFrak Organization. So how can you improve your chance for loan modification? Do your own research, understand how your bank operates and be prepared before you approach the bank. Debt zero programs at d0p.org is the most up-to-date, comprehensive and FREE information source on the internet on government programs for loan modification affordable refinance and other government help for debt reduction. You don’t need to pay thousands of dollars to get help. You don’t have to do it alone either. The help is here and FREE.