Which Loan Modification Banks Are Trustworthy and Which Are Not?

Posted on July 27, 2009 - Filed Under Debt Relief | Leave a Comment

In this time when the headlinesin everyday main news tells a story of a major bank failure, an average Joe caught in the financial turmoil falling behind in mortgage payments is unable to decide which loan modification banks are trust worthy.

After the government announced loan modification scheme to bail out the homeowners, most of the major bank are offering home loan modification service if you qualify. It is a widespread misconception amongst people that banks are not willing to give loan modification service. If scrutinized closely it is a win win proposition by the government for both the lender and the borrower. Where on one hand the borrower gets to keep the house, the lender not only gets government incentive but also minimizes the static assets in form of foreclosed houses.

Most banks have more or less same criterion with some exceptions in the lowest permissible mortgage rate and whether the borrower should already be delinquent on payment before being eligible or not?

As a borrower one would want a bank that should be there with them throughout the period of loan repayment and work with them.

There are several banks offering loan modification services but most trustworthy ones are:

Wells Fargo, Federal home loan bank: There is a federal government home loan modification plan of which many banks are a participants are Fannie mae, Freddie mac, Federal Home loans banks, Hope Now participants, Department of Treasury and Federal housing administration and Wells Fargo. The banks under this program are backed by the government and very trustworthy for availing loan modification service.

The eligibility criterion is:

  • You should have missed out on payment for more than three months
  • You should be living on that property
  • No Bankruptcyfiled
  • The debt to income ratio should be 38%

JP Morgan Chase and co, Washington Mutual and EMC mortgage Corp: These three banks provide combined home loan modification program. They proactively reach out to the borrowers to initiate the proceedings for borrowers who qualify.

  • The eligibility criterion is:
  • It must be loan that JP Morgan Chase owns.
  • The scope of the loan mortgage service is Washington Mutual, Chase and EMC mortgage corp. borrowers having loan with adjustable rate mortgages (ARM) dated before 31st Dec'07.
  • The debt to income ratio should work out between 31% to 40%

Citi Bank: This bank is committed to make its service of home loan modification available to all the Citi group borrowers who are eligible and work honestly with Citi bank .

  • The eligibility criterion is:
  • The mortgage must be the first and loan should be owned by Citi group
  • The borrower must be living on that property
  • The borrower need not be delinquent on payments but one who need assistance to keep from delinquency on future payments.
  • One for whom the calculation of gross monthly income payment calculation doesn't cross 38%.

Bank of America (Countrywide financial): Under this home loan modification program bank of America is committed to modify troubled mortgages up to $8.4 Bn in interest rate and reducing the principal rate for approximately 400,000 countrywide customers.

  • The eligibility criterion is:
  • The scope of the loan mortgage service is Bank of America borrowers having loan with adjustable rate mortgages (ARM) dated before 31st Dec'07.
  • The borrower should be delinquent for a period of 60 days or more.
  • The Debt to income ratio should not be less than 34%

Indy Mac Federal Bank: The Indy Mac Federal Bank is committed to help its borrowers with sustainable and affordable mortgage payments.

  • The eligibility criteria:
  • The mortgage must be the first and loan should be owned by Indy Mac federal bank.
  • Should be a client of Indy Mac Federal.
  • The property should be owner occupied.
  • The debt to income ration should be more than 38%.
  • The borrower need not be delinquent on payments but one who need assistance to keep from delinquency on future payments.

For more information, expert advise and resources about <a target="_new" href="http://loan-mortgage-modification.net/loan-modification-myths/">trustworthy modifications banks, please visit the best loan modification resource here at:: <a target="_new" href="http://loan-mortgage-modification.net">http://loan-mortgage-modification.net

Related Posts

Comments

Leave a Reply