Wednesday, August 12, 2009

Why Are Loan Modifications Taking So Long?

As pressure increases on servicers to pick up the pace of loan modifications, many are wondering: What’s the problem?

NeighborWorks America, in its report to Congress on the National Foreclosure Mitigation Program, reported that more homeowners are being reached through counseling, but that servicers are taking as long as 45-60 days to do their part. recently took a look at five reasons why the loan modification process is so slow. Michael van Zalingen, director of homeownership services for Neighborhood Housing Services of Chicago, a NeighborWorks member organization, weighed in on many servicers’ insistence on using a fax machine.

"It seems your stuff goes into a black hole," Zalingen told CNN. "It's archaic. Given all the problems we've had with lost faxes, it seems unreasonable to use a fax system."

See what else is on’s list of the “5 dumb reasons you can't get mortgage help.”