Study: Race plays role in mortgage modifications

Floating piggy bank

In California, homeowners of color have a harder time getting a home loan modification than their white counterparts, according to a report from the California Reinvestment Coalition.

The report drew its conclusions after combining data from the Treasury Department’s Home Affordable Modification Program and a survey of nonprofit housing counselors.

The take-home message from the study is this: If you want to get a loan modification, take the paperwork seriously and get professional help.

Gather every bit of paperwork the bank has asked for and take it to a nonprofit housing counselor.

If you’re missing even one thing the bank has asked you for, you could lose your home.

Take your paperwork to a nonprofit housing counselor who uses a software system called LoanPort, which scans your documents and loads them directly into the mortgage lenders’ system, so they can’t get lost.

Being really diligent about following up is important because the odds of getting a loan workout aren’t in your favor no matter who you are, but especially if you’re a person of color.

The study found:

Differences in the way borrowers were treated also showed up in the data:

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