loan modifications: The truth behind failed loan mod program
- 12/03/11 02:35 AM
"Who or what is responsible for the failure of the government's mortgage modification program to make a sizable dent in the volume of foreclosures?" Many factors are involved in this complicated story, but in my view, there are two major factors.
The deserving-borrower mindset
From the beginning, the operating premise of the government's modification program has been that only deserving borrowers should be helped. The programs require that borrowers be suffering from financial hardship, and that their mortgage payment exceeds 31 percent of their income.
Balance reductions as a modification tool are discouraged or prohibited because they constitute … (1 comments)
loan modifications: Underwater Mortgage – Tap into multiple options available to borrowers
- 04/23/11 12:50 AM
Until recently, it took a rare combination of extreme bad luck and poor judgment for a homeowner to end up under water on his mortgage – that is, owing more than the house is worth. Today, nearly one out of four homeowners is facing exactly that situation. In response, banks and the government are rolling out new programs they say will help – that is, for homeowners who qualify. After banks’ initial resistance to loan modification programs and refinancing designed to help struggling borrowers, many are now embracing programs for homeowners in trouble. Both GMAC Mortgage and Wells Fargo have started … (1 comments)
loan modifications: Foreclosures Are Ever Increasing - Is This the Real Answer
- 10/29/10 03:21 AM
Foreclosures are setting records in most regions of the country Lenders are making errors and or using false documentation Authorities are asking for a moratorium Loan Modifications don't work Home values are negatively impacted This is making the general public's head spin Finally questions answered in a user friendly way For free information on how this may impact you and your family go to
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loan modifications: Obama's Plan to Stem Foreclosures Will Do More Harm Than Good
- 02/28/10 03:08 AM
The Obama administration is mulling a plan that would require lenders to make efforts to enroll homeowners in the government's Home Affordable Modification Program (HAMP) before they pursue foreclosure. According to a memo reviewed by Bloomberg, the proposal "prohibits referral to foreclosure until borrower is evaluated and found ineligible for HAMP or reasonable contact efforts have failed." If the program is implemented, banks would be unable to initiate foreclosure proceedings until they have tried to contact borrowers about HAMP at least four times by phone and at least twice by certified mail. "Conceptually it is a good idea. Procedurally, it might … (1 comments)
loan modifications: Beware New Home Equity Scam
- 02/12/10 12:41 AM
There are all sorts of real estate, home equity, mortgage fraud, home improvement and rental scamsout there. I’ve been getting several versions of this email urging me to provide information about my home equity lineof credit account in order to take advantage of a once-in-a-lifetime opportunity.Since none of it makes any sense, it’s clearly a phishing scam. But I can see it snaring anunsuspecting homeowner in extreme financial trouble. Home Equity Line of Credit ScamHere’s the text of one of the emails I received. I haven’t changed anything except for formatting:We are in need of Home Equity line of credit account … (2 comments)
loan modifications: What Is Going On With This Unfulfilled Program?
- 01/19/10 11:21 PM
We know there is massive red tape in large banking organizations but how can this be possible. If only 65,000 people are currently working with their banks to modify their loans and about 49,000 have dropped out of the program because they don't qualify, I would guess that the system is broken. This leaves almost 90% of the troubled loans in limbo waiting for something to happen. It is time to label this program a failure and take immediate action to generate a way of saving millions from losing their homes. We spent billions of dollars bailing out companies that were too … (1 comments)
"Who or what is responsible for the failure of the government's mortgage modification program to make a sizable dent in the volume of foreclosures?"
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