Some Massachusetts Banks Not Following Loan Modification Guidelines

March 25, 2010 - Boston - Consumers across the country are frustrated with banking institutions that are refusing to follow the guidelines that govern the federal loan modification program, known as the Home Affordable Modification Program (HAMP). According to reports at FOXBusiness.com, a number of homeowners across the country are filing complaints against banks that continue to follow deceptive practices during the loan modification process.

A number of homeowners claim that banks will offer them a loan modification, and enroll the consumer in the program's trial period, but then refuse to follow up on the permanent modification. The National Consumer Law Center tells FoxBusiness.com that this is an "epidemic problem," especially in Massachusetts, where 2 lawsuits have been filed against Wells Fargo and Bank of America. 

The federal guidelines for the HAMP program specify that homeowners must first participate in a trial period for 3 months. Once that trial period expires, the bank is supposed to make the loan modification permanent -- as long as the homeowner has met all required conditions during the trial period. As these new complaints specify, many banks are not following through to make the loan modification permanent.

Another common problem illustrated in the lawsuits is that the banking institutions will delay the process indefinitely, which leaves the homeowner in peril of losing their home. If you are trying to pursue a loan modification through the HAMP program and are experiencing any of these delay tactics, it would be in your best interest to contact a Massachusetts class action attorney who can help make sure your interests are represented.