The Connecticut Department of Banking held a Homeowners Mortgage Assistance Event at the Connecticut Convention Center yesterday. The purpose of the event was to provide a one-on-one opportunity with mortgage lenders and HUD-approved housing counselor, with the hope of providing assistance to homeowners who are in trouble with their mortgage.
McCue Mortgage was one of several Lenders that participated in this event. I arrived at the Convention Center at about 9:30 AM and the upper level, where the event was being held, was already packed with people. and it was that way all day long. The event was suppose to end at 7:00 PM, but I was there until 9:00 PM trying provide options for homeowners who cannot or will soon not be able to pay their mortgage.
We keep on hearing how the problem with the Housing Industry is that homeowners are underwater with their mortgages. While that is a contributing factor, and a factor that limits the options of those who are upside down on their mortgage, it is not the major problem. I can tell you from first hand experience, from talking to homeowners daily who are trying to lower their mortgage payment, and this was further confirmed by those who filled the Convention Center yesterday, that the major problem is unemployment.
Homeowner, after homeowner yesterday sat down in front of me, and the story was almost the same. They were either out of work, had been out of work, or had their hours reduced, and the lose of income is what put them in the position that they were in.
Those that were out of work and only had unemployment income, or whose income had been reduce, I did not have options for them, except to encourage them to keep on trying to work with their Lender to do a Loan Modification. But even then that was not the answer for most of them, because their income was not enough to pay for even support a substantially reduced mortgage payment.
Those that I was able to provide at least hope for were those that had fallen behind on the mortgage because they had lost their job, but now were back to work. These homeowners had fallen into a hole that they were struggling to climb out of, and a reduction in their mortgage payment would help them to achieve that. Their credit scores were very low, because of not being able to pay some bills during the time of unemployment. creating a situation that prevented them from qualify for FHA or Conventional refinances. However, a program called CT Families, that was funded during the time that Governor Reil was in office and administered through CHFA that allow for low credit scores, and recent late mortgage payments, if the homeowner can demonstrate that they can afford a new payment at a lower rate. These homeowners, I will be following up with once they have gathered the necessary documents that I will need to try to refinance them into a CT Families loan.
I would not consider yesterday a success, because there were many more homeowners that I could not help, but it was a start, and new hope for some. CT Families loans are not easy to do and require a lot more documentation than traditional loans, but if it can help a family get their head above water, it is well worth the extra work.
I will try to post in the future about those that we did end up helping, and hope to be able to share several success stories.
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Who To Call For Your Mortgage Needs In Connecticut:
George Souto NMLS# 65149 is a Loan Officer who can assist you with all your FHA, CHFA, and Conventional mortgage needs in Connecticut. George resides in Middlesex County which includes Middletown, Middlefield, Durham, Cromwell, Portland, Higganum, Haddam, East Haddam, Chester, Deep River, and Essex. George can be contacted at (860) 573-1308 gsouto@mccuemortgage.com, or visit my McCue Mortgage Homepage.
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