If you are trying to go through a loan modification you are aware of what a difficult process it can be. If you are going through a loan modification with Chase it is nearly impossible. According to the nonprofit news outfit ProPublica, over 97,000 homeowners have been stuck in a trial loan modification, and 60,000 of those 97,000 have a loan through Chase.

According to an L.A. Times article, Chase spokesman Thomas A. Kelly said he hadn’t seen the ProPublica report. However, he said the New York bank “calls borrowers up to 36 times, sends up to 15 mailings and then knocks on their doors twice to try and get the documents we need.

According the list that RealtyTrac recently released sun belt states and cities continue to top the list for foreclosures. According to the L.A. Times. “Cities in four Sun Belt states swept the top 20 list of metro areas ravaged by repossessed homes, according real estate website RealtyTrac’s report.” The city with the biggest foreclosure problem was Las Vegas, Nevada which has had one of the highest foreclosure rates since the beginning of the down turn.

California cities such as Merced, Bakersfield, Stockton, Modesto, and San Bernardino continue to remain high on the list.

There has been an large increase of delinquencies in home equity loans and lines of credit. Oddly there has been a decrease in delinquencies in other types of consumer loans such as for cars, home improvements and even boats and recreational vehicles.

The news of the delinquencies comes as Freddie Mac reports that the 30 year fixed mortgage rate has remained above 5%.

Financial author Roger Lowenstein brought up a good point in his recent article in the New York Times Magazine.

People used to do anything and everything to keep their home, but nowadays it seems as though people are more willing to let go of their homes in order to keep their money. He argues that this isn’t being irresponsible, and that when people are faced with this problem they maybe be better off handing the house over to the bank.

Home sales have seen a reassuring increase this last month, with sales at levels we haven’t seen in three years. Many believe its a sign that federal support has done its job. It is estimated that nearly 2 million home buyers took advantage of the First-time buyer tax credit so far, and its expected that nearly 2.4 will use it in the next year.

According to a LATimes Article, “Sales are now up 46% from the bottom in January, but down 10% from the peak more than four years ago. Sales had been expected to rise to an annual pace of 6.25 million, according to economists surveyed by Thomson Reuters.”

The Obama administration is working to make trial home modifications a permanent transaction rather than temporary.  There has been a lot of talk and ridicule recently of how the banks have handled modifications thus far. In an LA Times article, Assistant Treasury Secretary Michael Barr said, “In our judgment, servicers to date have not done a good enough job in bringing people a permanent modification solution.”

According to reports, about 375,000 of the trial modifications are eligible to be made permanent by the end of the year. The government is pushing for these people to receive the attention they deserve.

It seems as though the banks are getting a little carried away with foreclosures these days. The Zerner’s, a couple in Arizona recently lost their home to foreclosure, whats interesting about their loss is that they were no longer behind on their payments. They had successfully carried out a loan modification and paid the necessary dues to Chase Bank. Chase now says that it was a mistake to have sold the Zerner’s house, and they are now reaching out to the couple with what the next steps will be.

Fannie Mae has plans to begin a program to help homeowners who have lost their homes to foreclosure. They will no allow these homeowners to rent their home back for one year. The program is designed to help those who do not qualify for a loan modification. This also helps the banks bring in money on homes that may just sit empty otherwise.

California Governor Arnold Schwarzenegger passed new laws that were designed to protect homeowners. Among the laws approved, there is one that restricts mortgage brokers from talking perspective homeowners into riskier, and high interest loans when the borrower qualifies for more an all-around better loan.

According to the Los Angeles Times here are some of the other laws the Governor signed:
SB 36,  by Sen. Ron Calderon (D-Montebello), sets standardized licensing requirements for all residential loan originators.

SB 239, by Sen. Fran Pavley (D-Agoura Hills), makes it a felony to commit fraud on a mortgage loan application.

AB 329, by Assemblyman Mike Feuer (D-Los Angeles), requires lenders to provide more, clear information to senior consumers interested in reverse mortgages.

SB 237, by Calderon, creates a registration program for appraisal management companies.

AB 957, by Assemblywoman Cathleen Galgiani (D-Stockton), allows buyers of foreclosed homes to choose local escrow officers.

AB 1160, by Assemblyman Paul Fong (D-Cupertino), requires that mortgage loan documents be translated into the language the verbal negotiations were conducted in.

Over a half a million homeowners have had their mortgages modified under the plan President Barack Obama began earlier this year. Treasury Secretary, Timothy Geithner said, “Unaffordable mortgages are now being modified at a pace faster than homes are being sold in foreclosure proceedings.” He also went on to say that 40% of the 1.2 million homeowners deemed eligible for loan modifications under the Obama plan have received them.

This is still a taxing process for many homeowners who still find themselves nearing foreclosure. So, although the administration celebrates this milestone they are still very aware that there’s much more to be done.