mortgage modification: Loan Modifications Likely to Default Within A Year
- 06/17/10 11:02 AM
Loan Modifications Likely to Default Within A Year The Wall Street Journal (James R. Hagerty) reports that Fitch Ratings predicts that "most borrowers whose loans are modified under federal programs will likely default within a year." The Fitch predictions are based "on the performance of loans modified in the first quarter of 2009." Fitch Managing Director Diane Pendley says "the failure rate is likely to be high because borrowers are saddled with credit-card debt, car loans, and other obligations they can't afford." So you lose your house, they repossess your car, they cut up your credit cards, your credit is shot (1 comments)
mortgage modification: Lenders Unload Mortgages to Collection Agencies
- 04/23/10 09:49 AM
Lenders Unload Mortgages to Collection Agencies Lenders are selling second mortgages and home-equity lines in default to collection agencies that have the right to collect this money potentially for decades. "It's a big business, and investors are coming out of the woodwork," says Sylvia Alayon, a vice president for Consumer Mortgage Audit Center, which analyzes mortgage documents for lenders, advocacy groups, and attorneys. Real estate professionals will be doing their short-sale clients a big favor if they urge them to get professional advice before they sign agreements, Alayon says. A new government short-sale program, which takes effect Monday, aims to (2 comments)
mortgage modification: Half of Modified Home Loans are in Default
- 03/27/10 02:21 AM
Half of Modified Home Loans are in Default More than 51 percent of all borrowers whose mortgage loans were modified in the first quarter of 2009 defaulted again by the end of the year, reported the Office of the Comptroller of the Currency and the Office of Thrift Supervision in a joint report. Modifications are "clearly not working well and it's not a surprise," said Sam Khater, a senior economist at research firm First American CoreLogic. "It's pointless to rewrite these loans because they're underwater." Nearly 4.5 million foreclosure filings are expected in 2010, according to RealtyTrac, a seller of default (3 comments)
mortgage modification: Wells Fargo Will Modify Second Mortgages
- 03/21/10 06:38 AM
Wells Fargo Will Modify Second Mortgages Wells Fargo & Co. has joined Bank of America Corp. as the first two banks to sign onto the federal government's program to modify second mortgages. Under the government's plan, borrowers who have been extended loan modifications on first mortgages can now apply to reduce their second mortgages. Analysts say banks have been reluctant to adopt this part of the government's loan modification program because they continue to hold most second mortgages and forgiving them will be costly.Source: The Associated Press (03/17/2010) (0 comments)
mortgage modification: Foreclosure Prevention Has Aided 116,000
- 02/20/10 01:54 AM
Foreclosure Prevention Has Aided 116,000 The federal foreclosure prevention program has helped about 12 percent of borrowers who applied for help since the plans were announced a year ago, the Treasury Department says. About 1 million borrowers initiated the application process, and as of January, about 116,000 home owners--12 percent--had their loans modified. But administration officials say another 76,000 applications have been approved and are awaiting signatures. Another 830,500 home owners are currently in a trial modification review period during which banks make sure payments are feasible for the borrower and ensure the qualifications of the assistance program are met. For (0 comments)
mortgage modification: Mortgage Modification Plan Falls Short
- 01/22/10 02:44 AM
Mortgage Modification Plan Falls Short Only 65,000 people - about 7 percent of those who applied - have successfully navigated President Obama's plan to help borrowers who are in trouble, the Treasury Department said last week. About 49,000, or 5 percent, have dropped out of the program because they don't qualify. Most of the remainder are still waiting. Bank of America, the largest company in the program, has completed fewer than 2 percent of the modifications for 200,000 borrowers who signed up. The most successful lenders include Ocwen Financial Corp. and Carrington Mortgage Services, which have modified loans for 40 percent (0 comments)
mortgage modification: Loan Modifications Hit Credit Scores
- 12/29/09 05:46 AM
Loan Modifications Hit Credit Scores Applying for a mortgage modification and being in a months-long trial period can devastate a home owner's credit score. Under the government plan, troubled borrowers can have their mortgage payments reduced to 31 percent of their pre-tax income. They are first put in a trial modification for several months to test whether they can meet the requirements of the new mortgage. Borrowers who were previously current on their mortgages will see their FICO scores fall about 100 points while they are in the trial period, according to the Treasury Department. Borrowers who were previously late or (4 comments)
mortgage modification: Loan Modifications Coming Up Short
- 12/12/09 01:26 AM
Loan Modifications Coming Up Short Only about 4 percent of the home owners who signed up for loan modifications-fewer than 31,000-had received them by the end of November, according to figures released Thursday by the U.S. Treasury Department. Of the largest lenders, Bank of America Corp. had the worst results. It completed a total of 98 modifications. With 7,100, GMAC Mortgage completed the most. Lenders have blamed their lack of success in part on the failure of borrowers to complete the paperwork necessary for the process. The government says it will expedite its efforts to push through as many modifications as (0 comments)