Well October 1, 2008 came and went and everyone who was waiting for the "miracle" of hope for homeowners turned out to be just a dream. To date I have yet to hear of any banks cooperating with this supposedly wonderful idea of reducing principle for homeowners who want to stay in their homes essentially doing a short pay re-fi. Trouble is 75% of the homeowners I know who are in trouble also have second deeds on their houses.
Anyway, recently in the past month or two I have heard of sellers starting to get forebearances on their current mortgages with the promise of doing a loan modification. Perhaps this won't be the pie in the sky Hope for Homeowners kind of reduction, but at least its a temporary "Hey, we'll see what we do" signal from the bank.
I have been told that if a house is listed as a short sale and of course if the homeowner is getting behind in payments that the banks are more likely to start taking notice than if the house wasn't listed.
Now this could be good, or bad, or maybe both. I'd like to know if anyone else has had any personal experience with this situation or what your thoughts are on this.
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