Atlanta, GA (PRWEB) May 5, 2010
Two IT professionals from Atlanta, GA who were tired of complaining about banks and their targeting of minority neighborhoods with subprime mortages and then dragging their feet on loan modifications decided to do something about it. The duo created the fixmodifications.com webportal which allows home owners to rate their loan modification banks and community members to find out details regarding loan modifications in their affected states, counties & cities.
The goal of this voluntary effort is to highlight experiences of homeowners who are going through the process of a home loan modifications. "We encourage homeowners to register and answer a few short questions to rate their loan modification experience with their mortgage banks. Our team will then combine all responses into state, county and city reports showing details of a community's modification experiences" said project lead K. Anne Abrams. The goal is to highlight and support the banks which are doing an outstanding job and name and shame the banks which are delaying any meaningful negotiation; hoping that such delays will result in them having to make no loan modifications in the long run.
Abrams goes on to say that, "Big banks have been bailed out inspite of their greed, poor risk management and overall failure to manage their businesses very well. It is also well known that loan originators targeted minority communities with subprime loans even though at least 50% of subprime mortgage holders were eligible for standard loans, yet despite the help extended to them, reciprocity is not the order of the day. The foot dragging on loan modifications continues mostly impacting targeted minority communities. This delay leaves credit reports ruined, families in limbo awaiting decisions, and homeowners stressed out as they battle underemployment.
According to our discussion with some homeowners Abrams continues, "modifications which should have taken upto 3 months are running into as much as 12 months. As time goes on and homeowners make their trial payments, the difference between the trial payments and the higher subprime monthly payments continue to rack up. Principal is not generally reduced, so on a home which has lost 30% - 50% of value, homeowners are stuck with an underwater mortgage balance plus a large balance on their mortgage payments. This new combined liability leaves homeowners with no real benefit at all. Is it surprising that loan modifications as they are currently designed are failing?"
The team's hope is that by shining a light on these facts, the larger community will move to support banks which reciprocate and work with homeowners by reducing principle and/or payment balance and shame banks which continue to punish those hurting the most in this tough economic climate.
All responses are completely anonymous and registration will allow free access to all of reports. Follow this link for more information http://www.fixmodification.com.