Déjà vous? Fast track modifications are back with multiple banks and service providers. Before the melt down in 2008, loan modifications were provided over the phone with little or no documentation. The homeowner would call the bank, answer a few questions and would be provided a modification over the phone. The theory behind this ease was that the properties would still retain their values and the banks can still take advantage of longer loan repayments.
Fast forward to 2010, the banks provided modifications however requested documentation to prove income and residency, the task was daunting to say the least because the bank seemed to constantly ask the homeowner to resend information that was previously sent. In February 2012 the Banks (Chase, Citibank, Wells Fargo, GMAC, Bank of America) settled with the AG’s Lawsuit which argued that these banks were not providing modifications as required under HAMP ( Home Affordability Modification Package). Regardless, of the lawsuit many banks continued to make modifications out of reach for many homeowners.
Fast track modifications allow the bank to provide a telephone interview with the homeowner or homeowner’s attorney and then the homeowner provides documents supporting the new modified agreed payment. In many cases, the payment can be reduced by 30-50%. The homeowner still must provide an Request for Modification Agreement ( RMA), paystubs, bank statements, lease information, tax returns and a utility bill; however the homeowner does not need to guess if they qualify. Ask you attorney or bank representative if they provide Fast Track Modifications.