CORONA, Calif., Nov. 26 /PRNewswire/ — In the current mortgage and foreclosure crisis, the data and feedback from actual homeowners in regards to outreach and customer service by mortgage servicers during the loan workout process is crucial. Improving communication, customer support and timely resolutions for struggling borrowers are critical components to easing the foreclosure crisis.

This independent study of non-incentivized homeowners clearly shows that this is simply not happening according to LoanSafe.org's Loan Safe Report, the 2008 Mortgage Servicing Survey.

Countrywide Home Loans ranks the lowest among primary mortgage servicers with a disapproval rating from homeowners of 77.6% and Chase ranked the best with a disapproval rating of 54.8%.

49.4% of homeowners are seeking a loan modification plus principle reduction in their mortgages and 8.2% say they are walking away from their homes.

The study measures homeowner satisfaction by asking key 10 questions that deal with customer service during the loan workout process. Such as method of contact, the effectiveness of customer support, rate your mortgage servicer, goal of homeowner and resolution to mortgage problems.

The study finds that homeowners are experiencing high levels of frustration with even the most basic customer service skill sets and a large proportion (79.8%) of respondents are completely dissatisfied with their mortgage servicers ability to effectively handle their loan workout.

Only 7.1% of homeowners were contacted by their mortgage servicers. This is contrary to popular belief that mortgage servicers are attempting extensive foreclosure prevention outreach to contact struggling borrowers.

79.8% of the homeowners polled were dissatisfied with simple customer service activities such as, "support representative's knowledge of available options."

Common courtesy is hard to find with 77.5% of respondents dissatisfied with the courtesy they received when attempting to obtain a loan workout from the customer support.

"Many homeowners are simply not getting the help they need from their mortgage servicers," said Moe Bedard founder and president of LoanSafe.org. "With the magnitude of the foreclosure crisis, it becomes very important that mortgage servicers communicate effectively and establish trust with homeowners in order to effectively perform loan workouts in a timely manner."

Bedard also said, "Over 83% of respondents did not have their questions answered and 87.9% of homeowners were dissatisfied with the overall experience with their mortgage servicers. This indicates that mortgage servicers are simply not doing enough to help struggling homeowners and we cannot trust them to even get the most basic customer service activities in check."

When asked, "What one action could your mortgage servicer take to increase your satisfaction with customer support?" Homeowners responded:

• They could transfer you to the appropriate person that can actually help you with a loan modification.

• Hire Americans!!!

• They need to be more compassionate and help the homeowner who wants to keep their homes and who can afford to keep their homes with some modifying of their loans.

• They sound like robots on the phone. Every person's situation is different and they need to listen and know that and not treat everyone the same.

• Have a standardized methodology for everyone. And special cases go to a supervisor. But on Day 1 Rep # 1 said XYZ and on Day 2 Rep # 2 said rep # 1 was wrong this is very despairing.

• Give details on how to qualify for modification than keeping it a secret.

• CONSISTENCY!!!! Be able to speak to one person through the entire process instead of explaining 10 times to ten different people every time you call.

• Provide a modification that works for the consumer, and to not treat me like I am worthless because I am in this situation.

Despite press releases indicating increased efforts by mortgage servicers to increase loan modification outreach, this study clearly shows that homeowners are not getting the help mortgage servicers say they are giving to struggling borrowers. In fact it is quite the opposite.

"This survey is bad news for mortgage servicing industry and proves that they have a large part in this foreclosure crisis. They simply are not adequately assisting homeowners adequately and their inability to want or to attempt to even get the most basic customer servicer skills down is alarming to say the least," said Bedard. "After almost 2 years of hearing homeowner complaints and experiencing these same issues myself, I feel that this study shines a light on the unscrupulous and unfair mortgage servicing industry."

The LoanSafe.org 2008 Loan Safe Report, Mortgage Servicing Survey, is based on responses from 412 homeowners who are currently in some stage of the loan workout process. The study was fielded in October and November 2008.

About LoanSafe.org

LoanSafe.org protects, strengthens and promotes homeownership by giving American homeowners the tools and help to stop foreclosure on the internet. Loan Safe helps support homeownership through a powerful consumer led online grass roots social campaign. We strive to influence our government and the media in the accountability and effectiveness of the loan workout and loan modification process with mortgage servicers.  LoanSafe.org consists of over 8,000 homeowner members, 5 million website visitors and has helped assist over 200 families save their homes for free.

Source: LoanSafe.org