Loan Modification Help For Homeowners in Washington

LOAN MODIFICATION HELP FOR HOMEOWNERS IN WASHINGTON

As fear grows that there is no loan modification help for homeowners in Washington, the number of U.S. households faced with losing their homes to foreclosure jumped 32% in just one month last April.  More than 342,000 households, or one in every 374 U.S. housing units, received at least one foreclosure-related notice in April, 2009.  Once the banks take over the foreclosed homes, they commonly place the house for sale at a substantial discount from market rate, and coincidentally continue to devalue the housing market.   [MSNBC, 5/12/2009]

Foreclosure rates are now lower than half the country, but unless loan modification help for homeowners in Washington state comes soon, foreclosures may explode in number.  Higher populated areas of Washington State, such as Seattle, Tacoma, Bellevue, Olympia, Vancouver, or Spokane, will experience the worst of it.  In January, 2009, Washington homeowners entered foreclosure at a higher rate than the national average, recording 2,200 foreclosure filings, which is a 9 percent increase from December.   [Seattle Times, 2/26/2008]

While many homeowners are forced to sell their homes at a loss, some have renegotiated their mortgage, and others have just walked away, letting the bank take over.  Such problems are reaching across all types of neighborhoods in Washington State, with Pierce County and South King County experiencing the most foreclosures as property values in that area dropped more than 25 percent since 2007.   [Seattle Times, 4/26/2009]

As suggested by Sheila C. Bair, chairwoman of the Federal Deposit Insurance Corp., and reported by the WA Post, "the government set out a standardized loan modification package for loan servicers to follow, enabling them to do workouts faster. In return for their picking up the pace, the government would guarantee some or all of the newly modified loans."  [WA Post, 10/26/2008]

Though many believe there is no loan modification help for homeowners in Washington state,  there is assistance for those who take immediate action. Whether in the form of loan modification, a secure short sale, streamlined refinancing, or another loss mitigation workout agreement, exploring all the options is the best approach for homeowners.  Under President Obama's "Making Home Affordable" plan, homeowners can save hundreds a month by getting a home loan modification or mortgage refinance.

Every Washington homeowner who is facing foreclosure, and those about to be, should immediately confirm if they qualify under the Obama Plan, and begin exploring all the options available to them, including the new government programs designed to help you get a successful loan modification.

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