In some cases, yes. HAMP has been underperforming compared the overestimated numbers that the government hoped it would complete. HAMP launched in March 2009 with the promise of 3 million modifications. Through May, servicers started roughly 731,000 permanent loan modifications and have been averaging between 25,000 and 30,000 per month this year. Wellsfargo claims they [...]
There are many examples of lengthy loan modification hardship letters on the internet. My guess is that many people copy them almost word for word and send them in as part of the required package. I suggest to you, don’t. Write something short and sweet but that explains your case and makes it personal. Things [...]
Loan Modification is a transaction between the homeowner and their lender that allows the homeowners’ monthly payments to be lowered. Lenders will sometimes allow a loan modification in a time of crisis or loss of income. Short Sale are when a home’s value is less than that of the mortgage amount and continues when a [...]
When should you consider a loan modification? - At the first sign of trouble because the process takes about four weeks. What a business owner should know about the process: - During an economic downturn or a prolonged seasonal downturn businesses and individuals who own commercial properties will be considered for a temporary reduction in [...]
The Federal Reserve is ordering 14 of the nation’s largest mortgage service providers to give homeowners a single person to call and discuss their case. In comparison, right now you could call in and talk to a different person each time and receive different answers and information each time. These multiple points of contact has [...]
Each lender, bank, and government backed program have their own requirements that must be met before they will approve the loan modification. Thus, if you talk to a friend or relative about how their modification went, you will likely find that their information is of little use to your situation. With all the different nuances [...]
As of February 2011, 27 percent of homes owe more on their mortgage than their homes are actually worth! Home values are still dropping and pushing even more families underwater. As such, it’s no secret that millions of homeowners around the country are struggling to keep up with their mortgage payments and applying for loan [...]
When you apply for jobs you have a general idea on whether you at least have the qualifications for that position. Just like hunting for a job, when you hunt for a loan modification you should know if you meet the qualifications before applying. After all, sometimes you can adjust your income by spending less [...]
Since, around six months ago when the Federal Housing Administration announced a new initiative to help “underwater” borrowers, nearly two dozen lenders have agreed to take part in the new loan modification program. The program, Short Refi, requires lenders to write off at least 10 percent of the principal balance, and investors, who, if they [...]
Another big issue for the housing market this year was access to credit. Interest rates have been very low by historical standards. But many people can’t qualify for those low rates. Several specialists have said that the pendulum has swung too far and lenders are being too tightfisted. For example, Fannie Mae and Freddie Mac, [...]
