The re-default rate of loans modified in the first quarter of 2009 was 51.5 percent by the end of the year, according to the Office of the Comptroller of the Currency and the Office of Thrift Supervision. Assistant Treasury Secretary, Herb Allison gave his opinion. "Borrowers were more likely to re-default when their monthly payments aren’t reduced enough in modifications to make staying in a home affordable.
Our data show that when you reduce payments by 20 percent or more you have a tendency for lower re-default rates,” he said. This is bad news. If you are looking for Oakley Loan Modification Help, don't become a statistic. Here is why this is happening. Many homeowners get desperate and accept a loan mod they can't afford.
Are you negotiating with your lender to reduce your monthly payment? Before you start, run your budget. Figure out what you can afford to pay each month. Decide on the highest monthly payment you will accept. Draw a line in the sand. If you can only afford $800 a month, then don't accept a $1,200 payment. The second loan modification is much harder to obtain. Lenders are reluctant to reduce your payment a second time, because they think you will default a third time around.
Review all your options to avoid foreclosure. Research your local housing market. Many people have been able to rent a house for much less than their mortgage payment. Here is one example. A couple owned a house with a $1,400 monthly mortgage payment. The home's value had dropped by 50%. Their lender wouldn't reduce their payment. They found a nicer house to rent for $850 a month. This is one option.
If you want to keep your home, you need to negotiate for a payment you can afford. Do not let your lender push you into an unaffordable payment. Not being able to afford your home is tough. You are stressed out. You and your spouse might argue over money. You might think about your problems when you are at work, which might affect your ability to do your job. You then risk getting let go. Where will your lender be at that point? This is why it is in the lender's best interest to reduce your payment where you can afford it.
Thanks for reading this post.
Adrienne Smith
CA DRE# 01121973
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