Wednesday, February 24, 2010
About 97,000 homeowners in the government’s mortgage modification program have been stuck in a trial period(loan Mod Limbo) for over six months. Most of them, about 60,000, have their mortgages with a single mortgage servicer, JPMorgan Chase.
Trial periods are designed to last only three months, after which mortgage servicers are supposed to either give homeowners a permanent modification or drop them from the program. According to a ProPublica analysis, about 475,000 homeowners have been in a trial modification for longer than three months.
A couple of key points on HAMP I've mentioned before: When the HAMP program began, the requirements for putting a borrower in a trial program varied by servicer. Some servicers put anyone who answered the phone, and said they'd make a payment, in to a trial program. Other servicers required homeowners to provide some initial documentation of income, and make the first payment, before putting them in a trial program.
Although the HAMP trial program was supposed to last 3 months, the period was extended to 5 months - and then eventually to the end of January (no matter when the trial started).
This suggests that there will be fewer trial modifications per month in the future (this is already happening) and a surge of trial cancellations in February. Bottom line on all this is there will be more deals for astute buyers over the next 12 months.
Wednesday, February 24, 2010
Saturday, February 13, 2010
Click on link to see why Chico and other cities are not getting loan modification help
This video show the inside deals that bankers have with the Fed and how its stops all Loan modifications cold. Makes you feel real warm about your Government, when the wolf at the door are one in the same.
Video Marketing and Mortgage News Designed for Mortgage and Real Estate Sales
That old saying" those with the money make the rules" but this is just , way over the line, as its now... those that print the money and make the laws also screw the public.
Video Marketing and Mortgage News Designed for Mortgage and Real Estate Sales
That old saying" those with the money make the rules" but this is just , way over the line, as its now... those that print the money and make the laws also screw the public.
Thursday, February 11, 2010
Are loan Modifications the way to go?
The government should be applauded for its efforts to keep people from losing their homes, but there is a side of the Obama administration’s Making Home Affordable loan-modification program that few people are considering: Modifying a home loan may make it necessary for consumers to rely on bad credit loans if they want to borrow money for a car in the future. Susan Tompor, a columnist for the Detroit Free Press, wrote in late 2009 that homeowners who successfully apply for a mortgage loan modification under the Obama program can see their credit scores take a dip. If that dip drops their credit scores lower than 620, these homeowners may have to turn to bad credit loans if they need to finance a purchase within the following year or two.
Bad Credit Loans
Bad credit loans aren’t necessarily a bad thing. Many people rely on them every year to buy homes or cars. Not everyone has perfect credit. Many consumers have missed payments in the past. Others have even had collection agencies calling their homes. Bad credit loans give these consumers the chance to own a home or car. However, bad credit loans generally cost more than do conventional mortgage or car loans. That’s because lenders charge higher interest rates for these loans. It’s a way for them to protect themselves in case the borrowers applying for these loans default on their payments. It makes financial sense, then, for borrowers to take the steps necessary to keep their credit scores high enough so that bad credit loans aren’t their only options.
Making Home Affordable
The Obama administration’s Making Home Affordable program offers financial incentives to mortgage lenders and banks to persuade them to work with struggling homeowners. The goal is to modify the mortgage loans held by these homeowners so that the homeowners can afford to pay them. This prevents homeowners from losing their residences to foreclosure. The problem is, receiving a mortgage loan modification is counted as a negative by the three credit bureaus — TransUnion, Equifax and Experian — that compile credit reports on consumers. This lowers homeowners’ credit scores, making it more likely that they will have to rely on bad credit loans next time they need to finance a large purchase.
Bad Credit Loans
Bad credit loans aren’t necessarily a bad thing. Many people rely on them every year to buy homes or cars. Not everyone has perfect credit. Many consumers have missed payments in the past. Others have even had collection agencies calling their homes. Bad credit loans give these consumers the chance to own a home or car. However, bad credit loans generally cost more than do conventional mortgage or car loans. That’s because lenders charge higher interest rates for these loans. It’s a way for them to protect themselves in case the borrowers applying for these loans default on their payments. It makes financial sense, then, for borrowers to take the steps necessary to keep their credit scores high enough so that bad credit loans aren’t their only options.
Making Home Affordable
The Obama administration’s Making Home Affordable program offers financial incentives to mortgage lenders and banks to persuade them to work with struggling homeowners. The goal is to modify the mortgage loans held by these homeowners so that the homeowners can afford to pay them. This prevents homeowners from losing their residences to foreclosure. The problem is, receiving a mortgage loan modification is counted as a negative by the three credit bureaus — TransUnion, Equifax and Experian — that compile credit reports on consumers. This lowers homeowners’ credit scores, making it more likely that they will have to rely on bad credit loans next time they need to finance a large purchase.
Subscribe to:
Posts (Atom)
Posts
