The Obama Administration is penalizing loan servicers who fail to meet goals under the government’s Making Home Affordable Program. Four out of ten loan servicers were identified as requiring “substantial improvements”. The government is withholding incentive payments to Bank of America, J.P. Morgan Chase Bank, Ocwen Loan Servicing, LLC and Wells Fargo Bank.
Bank of America, J.P. Morgan Chase Bank and Wells Fargo Bank received a total of $24 million in incentive payments to help homeowners who are in financial stress and have fallen behind on their loan payments by giving them mortgage modifications. If these four companies do not improve their performances, the government may continue to withhold their incentives. The government has been putting pressure on loan servicers to cooperate with borrowers to keep them in their homes and avoid foreclosure,
Six additional servicers were identified as needing “moderate improvement”, but no financial penalties including CitiMortgage, Inc; GMAC Mortgage, LLC; Litton Loan Servicing LP; OneWest Bank, and Select Portfolio Servicing. Twenty thousand more homeowners entered the HAMP trial modification during May 2011 and 29,000 converted from trial to permanent modification status. Since the inception of the program, 1,588,000 borrowers have participated in the program and 699,000 have converted to permanent loan modification status.
However, foreclosure numbers are still high and Arizona is among those states with the highest number of foreclosures. RealtyTrac reported for the second quarter 2011, that 28% of all sales were foreclosures. The average sales price for a foreclosure home nationwide was $168,310. During the first quarter 2011, 158,434 foreclosed homes were purchased. Nine percent of all sales during the first quarter were short sales and pre-foreclosures. Nevada, California and Arizona still are showing record number of foreclosures. During the first quarter of 2011, 45% of all residential sales in California and Arizona were foreclosures. For the month of April 2011, one in every 315 households received a foreclosure notice in the Scottsdale, AZ area. For Mesa, AZ, one in every 251 households received a foreclosure notice during April 2011.
If you are looking for bargains, Arizona certain has their share. Interest rates are still low if you need to finance your purchase. FHA loans are also popular among Arizona borrowers. The best way to find a mortgage product is to work with an Arizona mortgage broker. The broker has relationships with many lenders and can find you the best rates for your particular financial situation. If you are looking to refinance, it is also a great time to do so.
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Be sure to ask us for a free quote on your next mortgage. We’ll personally work with you and help you through the whole process.
Signature Home Loans LLC does not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only. You should consult your own tax, legal, and accounting advisors before engaging in any transaction. Signature Home Loans NMLS 1007154, NMLS #210917 and 1618695. Equal housing lender.BACK TO LIST