loan modification

Federal and state authorities on Thursday said they were beefing up efforts to protect consumers against fraud, particularly ones that prey on homeowners at risk of foreclosure. 

Attorneys general from 12 states attended the meeting with Treasury Secretary Tim Geithner and others, according to a news release. Many of them said that mortgage rescue scams have become a serious problem in their states.

Only 12 percent of U.S. homeowners eligible for loan modifications under the Obama administration's housing rescue plan have had their mortgages reworked, and millions more foreclosures are coming, the Treasury Department said on Wednesday.

A Treasury report showed 360,165 people had their monthly payments reduced through August, up from 235,247 through July, but a senior Treasury official conceded much more must be done to soften the impact of a severe and prolonged housing crisis.

Last week the Federal Trade Commission reported that it is seeking public comment to determine whether certain practices by companies providing foreclosure rescue and loan modification services are unfair or deceptive and should be reined in by proposed rules that would set standards to protect consumers.

Slowing economic activity, job cuts and slumping home values make borrowing money increasingly difficult. Foreclosure rates are hitting record highs. If you can’t make your mortgage payments, there's a good answer to the problem of inevitable foreclosure - a loan modification. It will help you restructure your debt and avoid defaulting.

What is a loan modification?

On Wednesday, February 18, Bank of America posted a new entry where the company expressed its content and rapture with the Obama administration's Homeowner Affordability and Stability Plan. The plan focuses on assisting homeowners with their mortgage payments through refinancing and a loan modification program.