HOME LOAN MODIFICATION WASHINGTON
According to a new Deutsche Bank report, the percentage of American homeowners owing more than their homes are worth will nearly double to 48 percent of those with mortgages in 2011, an estimated 25 million homeowners. Millions of American homeowners are now in a position where the amount they owe on the mortgage exceeds the house's value, and all while house prices continue to fall. Predicting half of all U.S. mortgages being underwater in 2011, homeowners across the country are in great need of loan modification.
It is estimated by Deutsche Bank that 14 million American homeowners had negative equity, owing more than their house is worth, at the end of the first quarter of 2009. While housing prices continue to fall, about 27 percent of U.S. homeowners are now "underwater" on their mortgage. At the current rate, nearly half of all American home mortgages will be underwater in 2011. [Marketwatch, 8/06/2009]
- 41% of prime conforming borrowers will be underwater by the first quarter of 2011
- 46% of prime jumbo borrowers will be underwater by the first quarter of 2011, jumping from 16 percent at the end of the first quarter of 2009
- 41 percent of prime conforming loans will be larger than their properties' value by the first quarter of 2011.
- 46 percent of prime jumbo loans will likewise be "underwater," a jump from 29 percent. [Reuters, 8/05/09]
After three years of price drops, this does not look comforting for stabilization in the U.S. housing market. Deutsche Bank reported that decline in home prices will have its greatest impact on prime borrowers and "conforming" loans meeting the guidelines of Fannie Mae and Freddie Mac. Prime conforming loans are commonly less risky due to stringent requirements, and make up two-thirds of mortgages.
Such a jump in these markets is significant as they make up the largest share of the total mortgage market, with Prime jumbo loans making up 13 percent of the total market. While prices continue to fall, more and more Americans will go underwater on their mortgage, making it more difficult to refinance, and leaving a Home Loan Modification the best solution.
With housing prices dropping, interest rates rising, and more and more homes underwater, refinancing is no longer a viable option, and without modifying these loans with a modification, half of America is likely going to lose their homes. Loan modification allows for a borrower to permanently change the terms of their mortgage, allowing for affordable monthly payments. Modifying a home loan can lower the interest rate, extend the term of the loan, or add any of the borrower's missed payments to the balance of the loan. With a free modification evaluation, homeowners can begin determining which government plans and savings they qualify for.
The long-standing and well-trusted mortgage servicer Mortgage Loan Center, LLC of Edmonds, Washington provides a free loan modification evaluation. Randy Lowell, of Mortgage Loan Center, LLC is currently the only instructor certified by the Department of Financial Institution to teach continued education classes on mortgage mitigation in Washington state, and now offers free classes for Washington homeowners to inform them of all their options, and new benefits available. It is advised that homeowners learn all of the options available to them in order to acquire a secure, successful, and affordable modification.
Mortgage Loan Center, LLC
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