After the Obama administration instructed banks to work with homeowners before foreclosing on their properties, a few major banks stepped up and promised to do their best to help. Unfortunately, the Treasury Department has found that JPMorgan Chase, Wells Fargo and Bank of America have not met their end of the bargain. For years, homeowners have been complaining of being stonewalled by mortgage companies that did not want to cooperate with them. Homeowners that have fallen behind on their payments are allowed to stay in their houses if they either come up with the money or get their mortgage refinanced.
The refinance process while a homeowner is in arrears can be a difficult and time consuming process. While the three bank being singled out by the Treasury Department might be making a profit by charging homeowners late fees, they have lost out on huge incentives. Every bank that shows that it is doing everything within its power to assist homeowners that have fallen behind are eligible for bonus payments from the government. Bank of America, Wells Fargo and JPMorgan Chase received a $24 million bonus payment in May, but this was before they were formally evaluated.
The fact is that banks aren’t showing that they want to work with their customers if they do not believe that they will get the money that they are owed in the end. Once a homeowners falls behind in payments for several months, foreclosure proceedings usually begin. Representatives from all three banks deny the allegations that they are preventing homeowners from staying in their homes.
