In the real estate news today, it's everywhere, articles about home loan modification.
Ah, the elusive thing that we all know is out there but has anybody really seen it? I'm sure there are those who have successfully arranged and received a home loan modification but I don't know of many and nobody personally who has. All I hear about is the frustration and defeat of those who have tried to no avail and given up, walked away.
Tell me I'm wrong. Tell me that Mighty Mouse has come to save the day! LOL! I cannot, in good conscience write another article telling people how to get a loan modification or where to seek help unless I hear that more people are actually having some success with getting their home loans modified.
1 in 4 homeowners owe more on their home than it is worth and 7.5 million are behind on their mortgage payments. Take unemployment into consideration and this is a tough situation.
Many don't know where to turn or how to get help with a mortgage modification and many banks and lenders are under informed and understaffed to deal with this problem. Yes, this is where the buck stops. Now, show me the money!
It is confusing for the homeowners because they are being told that programs for helping them get a loan modification exist but when they try to get help nobody seems to know exactly what to do. In the process they get lost in the shuffle of paperwork, and lost files or un-returned phone calls, etc. Banks are overwhelmed. Many people get frustrated and give up.
"Here I come to save the daaaaaay!" Okay..... really? Seriously?
The government is stepping up and offering new guidelines which will help homeowners with loan modifications and will begin fining and publishing a list of lenders who fail to increase the amount of homeowners who are given relief. The government expects to have 375,000 homeowners eligible for permanent mortgage reductions by the end of 2009.
"Eligible" homeowners. Being eligible and getting it done is not the same thing. And yes, I know I am being sarcastic. I had to humor myself if I was going to pass on this valuable news flash. At first I was just going to state the facts but as I started writing, it hit me that I know very few folks who have ever successfully gotten through the loan modification process. It seems impossible.
For those who have been successful getting a loan modification it took up to 9 months in some cases.
I hope with all my heart, that the new guidelines that the government has in place will make getting a home loan modification something that everyone who is eligible can achieve without losing their minds in the process.
If you need help with a loan modification, it's free. Visit http://makinghomeaffordable.gov/
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