more apt to assist you,†says Jackie O’Garrow senior vice president at Bank of American. “Alternatively, a counseling agency looks at you holistically and can help you present your case to the servicers.â€
Judicial loan modifications are another solution being shopped around by Keith Corbett, executive director at the Center for Responsible Lending, and a panelist at the Rainbow PUSH foreclosure roundtable. It is an idea that is endorsed by the Rainbow PUSH Coalition, NAACP, National Urban League, National Association of Home Builders and American Bankers Association.
Court supervised loan modifications will adjust a homeowner’s payment temporarily without changing the value of the house. In some cases, when an owner owes more on their home than the home is worth, a judge will decide the value of the house. Citibank is the only bank that has agreed to conduct court supervised modification, according to Corbett.
“We’re pushing very hard to have judicial modifications placed in the stimulus package,†says Corbett. “In December there were 303,000 Foreclosures; 10,000 people a day. Every day a decision is not made 10,000 families are affected.â€
Resources for Homeowners
NACA, Neighborhood Assistance Corporation of America
NCRC, National Community Reinvestment Coalition
FDIC Loan Modification Program Guide
Bank of America’s plan at LoanWorkout.org