Despite Congress enacting the Home Affordable Modification Program (HAMP), Iowa home owners find most banks unwilling to modify their mortgages and are loosing their homes because of it. The Cedar Rapids Gazette recently reported on a Marion family who had tried working with their bank, Wells Fargo, to obtain a loan modification only to find a bureaucracy unwilling to assist them.
Their story is the same as many homeowners throughout Iowa, who have found it incredibly difficult to obtain loan modifications and are instead facing foreclosure. The Gazette quoted John Gianola, managing attorney with Iowa Legal Aid in Cedar Rapids as stating "They've created this bullet-train system that rushes toward foreclosure, but this other train that's supposed to work with people is an antiquated steam engine that just breaks down." Iowa has created the only statewide response to the mortgage foreclosure crisis that providing homeowners with assistance completely free of charge. Still, without cooperation from the bank, home owners do not get the relief they need.
This is true nationwide. A congressional report relating to load modifications found that "the private sector was either unwilling to conduct mortgage modification on its own of a scope and scale necessary to stem the tide."
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