Mortgages: Do It Yourself Loan Modifications
I searched Google today looking for an answer. Is it possible, I wondered, to get a do-it-yourself loan modification, one that would instantly and automatically meet the government’s Home Affordable Modification Program (HAMP).
I found 27,300 responses to my Google inquiry, but the one response I wanted was missing. Why is it that one can’t simply go to something called HAMP.gov and fill in an online form developed by the government that would quickly say if you qualified for a mortgage modification.
Obviously such a form would be subject to both error and abuse, so the results it produced could not be seen as final. However, with documentation we would have the start of a loan file that borrowers could bring to their lenders.
This approach has several attractions:
___ It would save both lender and borrower time.
___ It would show borrowers what information and detail were needed.
___ It would create a list of needed documents that would be required to support the form.
___ It would be standardized, meaning that all lenders could work from one form.
We know that more than 230,000 households have already applied for relief under the HAMP program, but more distressed households are out there. Given that we have an Internet-savvy administration we should be able to do better.
The government has a basic form at MakingHomeAffordable.gov but then says “this site can help you determine if you are eligible, but only the servicer of your loan can tell you if you qualify. Please contact your servicer for more information.”
A better form could do a lot more. For instance, why not enter the very information that lenders require? Income, debts, assets, account numbers, employer contacts, etc? If the Internet is secure — and that’s what everyone says when they want your money — then why not an online form that could be emailed to lenders?
Most importantly, there would be no charge for completing the form. This makes sense because people who face the loss of their home are unlikely to have a bunch of excess dollars floating around.
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