Wednesday, February 24, 2010
The US Treasury Department is proposing a plan to improve the possibilities that the distressed home owners would get through federal programs.
Treasury suggests giving 30 days to the borrowers to respond when they are denied a loan modification under the Home Affordable Modification Program (HAMP). During that time the lender is not allowed to auction off the property or even put it up for sale.
The proposal also stipulates that the lender should consider the entire request and even contact the borrowers who are 60 days delinquent to determine if they qualify for HAMP. The contact efforts should be stated with multiple telephone numbers and written notices. If a borrower is not eligible, the lender should certify it in writing.
However, the guidelines are only in a proposal stage and haven't been approved yet, says a Treasury spokesperson. But the lenders believe that these guidelines would further slow the foreclosure process past the year that it takes now.



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