Loan Modifications Are a Farce ... Short Sales Offer Relief
It would be nice if the Obama administration would contact people in the situations of losing their homes and not the banks. Then, they would know how to deal with the situation. The administration is failing miserably by paying off the banks.
Yesterday, MSNBC announced that 1.24 million borrowers dropped out of the modification programs. Loan modifications are a farce, as you are still stuck with a house that is not worth keeping and working hard to keep it. If they let go, the homeowner can relieve themselves of the pressure and get a new start. But, only if they take the proper steps to walk away.
Just last month, another 150,000 left the modification program, which seems to be the up and coming trend. After all, the banks are making it too difficult to qualify and after the realization of what they were getting ... homeowners dropped out.
I work to collect many of the documents for the banks and it is amazing how many times they are misplaced. It makes me look like I am totally incompetent, because they keep saying that the borrowers aren't sending back the paperwork. Just last week, I sent the paperwork by Fed Ed, faxed it and attached an email. Today, the homeowner was asked to sign more paperwork for their loan modification. It was the exact same paperwork that I had sent three times in one week.
I explain to homeowners that after they get their loan modification, they will still be stuck with too much debt, but they still apply. I realze that it is an emotional decision. It is important to realize that, even with the loan modification, you are still encumbered with a high debt. Short sales offer relief as they relieve the borrower of the debt, and you should see the faces when the short sales are finally finished; it's great.
The HAFA (Home Affordable Foreclosure Alternative) 3,000 dollar in moving expense is ridiculous since the homeowner only gets the money if they are up to date on their mortgage and I still haven't found anyone in that position. So, if you hear that you are getting money to move ... don't believe it.
Please contact me if you are considering a foreclosure. If you know of anyone in this situation, please have them call me. I can help you to understand that there are alternatives to a foreclosure or loan modification, and I want to help.
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