WASHINGTON -- The Obama Administration takes new steps to help home owners in jeopardy of losing their home.
Despite all the programs and free help, we continue to hear stories of people unable to get their loan modified. Call for Action helped hundreds of people in the metro take the first step in saving their home in September.
Plus, the Obama Administration is announcing new efforts to increase the rate at which troubled loans are modified. The Home Affordable Modification Program (HAMP) put many troubled borrowers in a trial modification for at least three months. Roughly 375,000 of the borrowers in these trials are expected to convert to a permanent modification by the end of the year. The goal is to convert as many trial modifications to permanent ones.
The trial modification will be extended to give borrowers more time to submit paperwork. Executives complain borrowers are part of the problem and aren't getting their paperwork in on time because consumers were confused. We hear from homeowners who say they submitted the same paperwork multiple times. The application will be streamlined and simplified, and servicers will be held accountable for their performance. A list of lagging servicers will be released publicly in December. Plus, these servicers could be subject to fines.
Executives complain borrowers are part of the problem and aren't getting their paperwork in on time because consumers were confused.
The Mortgage Bankers Association says about 14 percent of homeowners with mortgages were either behind or in foreclosure at the end of September which is another record.
If you need help modifying your mortgage, you need to call a certified housing counselor. Your tax dollars already paid for the service. You can call United Way at 211 to find the closest housing counselor or call one of these agencies:
El Centro, Inc. Kansas City, KS 913-677-0100
Harvest America Kansas City, KS 913-342-2121
Catholic Charities KCMO 816-221-4377
Greater Kansas City Housing Information Center KCMO 816-931-0443
HomeFree—USA KCMO 816-822-7241
Legal Aid of Kansas City KCMO 816-474-6750
NHS of Kansas City KCMO 816-822-7703 ext. 215
Don't pay upfront for a service -- it's illegal in Missouri. Be wary of agencies that guarantee they'll save your home for a fee.
Call for Action worked with these agencies in September during our Save Your Home effort.
Copyright 2009 The E.W. Scripps Co. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.