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WE NEED TO DO A BETTER JOB WITH LOAN MODIFICATIONS ...

By
Real Estate Agent with Howard Hanna Real Estate Services

If "An ounce of prevention is worth a pound of cure," the nation's lenders have thus far not done a very good job becoming part of the solution. Turns out that Federal foreclosure prevention programs have helped a mere 12-percent of those homeowners who have applied to have their loans modified. This is not good news.

LOAN MODIFICATIONS

HAMP, a/k/a the Home Affordable Modification Program, aims to reduce mortgage payments for underwater homeowners to as little as 31-percent of their pre-tax monthly income. This figure includes principal, interest, taxes and insurance and other debts if possible. Amazingly only one 1-million or so homeowners have applied for loan modifications under the program!

116,00 homeowners or 12-percent have had their loans modified. 60,500 have been given outright denials and 76-Thousand have been approved but have not yet to receive "final" approval. Nearly 850-Thousand homeowners are in "trial" modification plans and are awaiting approval.

FIND A HOME: http://markostrovsky.com

 

Posted by

Mark & Elly Ostrovsky

Howard Hanna Smythe Cramer

Cellular: 216.577.1156

EMail: EllyandMark@GMail.Com

Website: http://MarkOstrovsky.Com

 

Mark is a licensed attorney in Ohio & in Massachusetts and works with his wife Elly in residential real estate representing buyers and sellers in Cleveland, Ohio's Eastern suburbs. You can search for homes on their website:

FIND A HOME: http://markostrovsky.com/

 

 

Comments(5)

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Pat Killeen
VanDyk Mortgage Corporation - Louisville, KY

I like your stats!

Feb 19, 2010 02:26 AM
Home Design
Alpharetta, GA
Home Design and Real Estate

I have heard this over and over from everyone I run into who has attempted loan modification.  The banks make  excuses for every little thing in your financial profile why they cannot do your loan mod. 

Feb 19, 2010 02:26 AM
Hella Mitschke Rothwell
(831) 626-4000 - Honolulu, HI
Hawaii & California Real Estate Broker

I know of one person with excellent credit who did not need or ask for a modication, was offered one by his lender. Why? I presume because lenders want/need to show that they have done some.

Feb 19, 2010 02:30 AM
Mark L. Ostrovsky
Howard Hanna Real Estate Services - Beachwood, OH
Howard Hanna Real Estate Services

Thanks for your responses. Under HAMP lenders and borrowers do have financial incentives and rewards to perform and to get something worked-out. This should be a win-win, but the stats are saying something different.

Feb 19, 2010 03:39 AM
Craig Richardson
National Realty - McLean, VA

I'm afraid loan modifications aren't going to be much of a practice.  Lots of games being played here between the banks, the feds, and anyone else who stands to gain.  Only ones getting hurt are the consumers, what I can tell.

Feb 19, 2010 04:49 AM