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Loan Modification is Available, But It's Not for Everybody

By
Real Estate Agent with Exit Realty Paramount

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www.msnbc.msn.com/id/37827936/ns/business-real_estate/

According to the Associated Press, a growing number of homeowners who sought help from the Obama administration's main mortgage aid program are in danger of losing their homes.

About 436,000 borrowers have dropped out of the $75 billion plan as of last month, the Treasury Department said Monday. That's nearly 35% of the 1.24 million borrowers who enrolled in the Home Affordable Modification Program (HAMP) since March, 2009.  Those who have dropped out exceed the number of borrowers who are being helped, and the drop out rate appears to be increasing.  See the link above for the whole article.

Ideally, all borrowers would qualify for a loan modification that would keep them in their homes.  But the reality is that, for many, modification simply isn't possible.  For those without a consistent, verifiable income source, a loan modification is out of the question.   The Michigan Home Rescue Team believes that all homeowners who desire to remain in their homes should diligently work with their lenders to modify their mortgages.  We can refer you to counsellors and non-profit agencies who may be able to assist you. 

But for those for whom modification just isn't possible, we also believe that foreclosure is NOT the answer.  To strategically default and let the bank take the property back is bad for the borrower, bad for the bank, and bad for the economy.  A "short sale" may be the best bet to fulfill one's obligation to the bank, minimize the damage to one's credit, and maintain one's dignity and self-esteem. 

So, to all those homeowners who are struggling and cannot get their loans modified, don't let yourself become a statistic.  We are here to help you salvage your credit, and your future.  We care-- deeply. For more information, please visit our website at http://www.MichiganHomeRescue.com.

Melissa Juarez
Massachusetts Buyers Broker Agency, LLC - Quincy, MA

Thanks Chuck for the post. Yes, loan modification is not for everyone. Have a great summer!

Jun 25, 2010 02:31 AM
Harry F. D'Elia III
WEDO Real Estate and Beyond, LLC - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

Please give us a couple examples of a successful loan modification. I have not met one person who had a successful one in Phoenix.

Jun 25, 2010 02:34 AM
Elite Home Sales Team
Elite Home Sales Team OC - Corona del Mar, CA
A Tenacious and Skilled Real Estate Team

I just spoke to a client that chose to do a loan mod. and he was in the 4th month of the trial mod.  He made all the payments and signed a new document that he thought was the new loan and the next day they had foreclosed on the home.

Jun 25, 2010 02:48 AM
Chuck Gollay
Exit Realty Paramount - Traverse City, MI

Harry:  I've met with a couple of homeowners here in Northern Michigan who have had their loans modified (not a service I provide, by the way), but I've met with many more who were not able to get modified.  It's a well-intentioned program that just does not translate well into reality.

 

 

Jun 25, 2010 03:48 AM