Moving America away from Foreclosure

I have been following Don DeBat's column for quite some time.   Mr. DeBat is a weekly syndicated columnist with Chicago Suntimes.  He reports what he sees and what everybody is talking about when it comes to the real estate industry.  Where I disagree with Mr. DeBat is his approach.  While the Federal Mortgage Modification Program has been reported as not performing like everybody in DC would hope it would, it is still a program and it is one step that most homeowners need and should apply for (and if rejected) that very same homeowner can move on and do a Chicago HAFA Short Sale. 

What isn't being said in the columns that I have read or reported by the government is that how many of those 1.5 million homeowners were receiving unemployment benefits and therefore wouldn't qualify for a loan modification?  How many of those applications were incomplete?

When one takes into account some of these unqualified stats, I believe the question may lie in the successful outreach and response from the homeowners who are distressed.  My job is to sell real estate but when someone wants to do a short sale, then we have a confidential meeting and I want to see their original loan application, the appraisal, the HUD-1 from their purchase as well as their tax return and W-2.  I want to see the bank statements for the last three months to see where their monies are going.  We have all the pamphlets about the options from NAR for the various programs available to the homeowner to assist them in understanding those options.

I believe we need to encourage the homeowner more rather then scare the crap out of them with how weak the Federal Mortgage Modification Program is.  There isn't enough clarity on these Loan Modifications or Forbearance Agreements.  If the homeowner  doesn't qualify for a Loan Modification well they do have options such as a Chicago HAFA Short Sale.

While it is great that the homeowner can take their lunchtime to find out if their lender participates in HAMP (a/k/a Home Affordable Modification Program), a simple link would help alleviate the worries when the homeowner is doing their research in the dark in their home at night because they are so concerned that the Sheriff will be knocking on their door when the homeowner receives the initial letter from the bank. 

I believe that there is a way to get this information out to the homeowners to encourage not discourage the homeowners so that the weebie jeebies aren't scaring them half to death!  Let's focus on stopping foreclosure so that America doesn't become our landlord.  Help your neighbors retain a higher median value during this market adjustment by not going into foreclosure.  Take the necessary steps.

There are only five simple questions that you need to answer online that will tell you whether or not you qualify for a loan modification.  You don't have to give anybody your address, your name, or your phone number.  It is a generic questionnaire.  

Begin today.