Court effective in getting loan modifications
By:
Christine Dunn
PROVIDENCE –– On Nov. 1, 2009, the U.S. Bankruptcy Court, District of Rhode Island, began a loss mitigation program to help homeowners obtain mortgage loan modifications from their lenders.
U.S. Sen. Sheldon Whitehouse said the program, instituted by Judge Arthur N. Votolato, is one that is needed in Rhode Island.
The Center for Responsible Lending projects that 31,192 homes in Rhode Island will proceed to foreclosure during the years 2009 to 2012.
According to testimony given at a hearing led by Whitehouse in Providence on Oct. 28, the Bankruptcy Court’s program is much more effective than the federal Home Affordable Modification Program (HAMP) at dealing with loan modification requests.