3 Banks Slammed on Mortgage Help

by Joe Sesso on June 11, 2011

Many people have been wondering for the past several years when the foreclosure crisis was going to slow down. Banks had to bailed out by the Federal government for making bad loans and they vowed to work with homeowners to help them get back on their feet. So how’s it going as of June 2011? Not well. And many banks have actually been the main problem.

The U.S. Treasury Dept just slapped Wells Fargo, Chase and Bank of America with a penalty for dragging their feet in helping troubled homeowners modify their mortgages. Because of this, these banks will not receive payments for loan modifications beginning this month. Is this a surprise? No way. For years many people have been complaining about these banks dragging their feet to get things done. I personally have a loan with one of these lenders and had a balloon payment due a while back. I tried to contact the bank six months before the balloon was due and received nothing back for several months. Finally with two months to go and many sleepless nights, the bank finally responded. Everything worked out in the end, but the unprofessionalism by this lender was unbelievable.

Wells Fargo is disputing the ten month study, saying the findings were from over a year ago. Either way, it should never have done it in the first place. If these banks were more concerned with modifying loans and solving the housing crisis than buying other banks to produce record profits, we might have already been out of this mess.

Hopefully, the findings can be a “kick in the pants” to the banking industry for them to get off their butts and start modifying loans. Americans are already struggling to stay in their homes. If a loan modification can help them and give them peace of mind, wouldn’t it behoove the bank to get more of these done? After all, the bank doesn’t want to foreclose on the home. If the owner is ready, willing and able to stay in the house and pay the modified loan amount, then the bank should be bending over backwards to get the deal done as soon as possible to save the loan. Doesen’t that make sense? Apparently not to the banks.

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