HUD counseling for a Mortgage Modification is a statistical Dead End Street

Oct. 3, 2010 - PRLog -- There are roughly one million delinquent FHA loans, and FHA-HAMP is also available to borrowers that are not delinquent, but whose default is considered “imminent”. (This would include those distressed mortgage holders whose bank told them that same bank couldn't help them until they missed a couple of payments.)
The HUD Neighborhood Watch Website shows 171 FHA-HAMP modifications for the month of April 2010.  This number includes Trial Modifications and fully approved FHA-HAMP modifications. Those numbers haven't changed significantly since. A recent radio ad says that HUD has helped one million homeowners. So, that's about 700,000 trial modifications; some a year old.
Last Spring, RMPBS TV station ran a public service spot that said they were less than 10% successful in getting mortgage modifications using the HUD counselors.
The US Treasury’s HAMP Report report shows that the number of borrowers that received free housing counseling in April was 53,001.
Mandelman quotes Krista Railey, who is another mortgage modification blogger: “No matter how you slice it, the FHA loss mitigation statistics are a disgrace.  You cannot get me to believe that out of over one million delinquent borrowers and over six million total loans that only 171 FHA borrowers wanted the FHA-HAMP program. HUD’s loss mitigation statistics paint a picture of either ineptitude or dishonesty. What really gets under my skin is that taxpayers bailed out the banks and eventually taxpayers will have to bailout FHA.”
What we now know since last April is that the banks are equally adept at sandbagging attorneys, professional mortgage modification firms, individual distressed homeowners, and HUD counselors alike. No one is holding banks accountable to respond to good faith mortgage modification negotiations.
Except judges.
We are seeing spectacular results when the REST Report is used as part of a foreclosure defense against a lender. It is illegal to foreclose on a distressed homeowner while engaged in a mortgage modification negotiation. And you might as well do it yourself because no one can represent you in court better than you, yourself.
The REST Report uses the same software platform the banks use to evaluate a mortgage modification. It calculates the supremely important Net Present Value, or NPV. If your mortgage passes that, any judge and mortgage investor will acknowledge that fact.

I am a proud vendor of the REST Report.

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This blog researches the convoluted and mis-reported distressed mortgage industry.

As of June 2010, the only efficient way to negotiate your mortgage is to get the REST Report. This software calculates the NPV of your home and tells your lender whether to modify or short sale. I am a proud vendor of the REST Report