Being from California, specifically the Palmdale and Lancaster area, loan modifications here might differ from other areas of the country.
I recently went to a NACA (Neighborhood Assistance Corporation of America) convention here in LA. If you are like me, you have clients who ask for your help. Most of these families want to stay in there homes but for mulitple reason, the economy not withstanding, they are struggling to make their payments. NACA has a lobby that puts pressure on the lenders to work with these owners. I was extremely impressed with how the system works. After meeting with a representative of NACA and going through your numbers, they recommend what you can afford as a payment. Then you actually meet with a representative with your lender and work out a deal right on the spot. I saw families taking their payments down by over one third. What the lender does is drop the interest rate down to 2%. I know that this is not more than a bandaid on a hemmorage but it is more than most lenders have been willing to do and it is a start. The borrower needs to be aware that their income to expenses can't be too high. Also, they do not qualify if it is an income property. You can find them at www.naca.com. They have conventions all around the nation. You just might become a hero to some of your clients.
Good Luck!
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