Posted By PremierLots on December 6, 2009

According to a recent article published 12/2/2009 on the Todayshow.com website, contributor Barbara Corcoran offered fresh insight into the government’s Making Homes Affordable program and where we’re at with the effort to successfully execute loan modifications. No not the temporary, partial modifications that waste your time and money. REAL MODIFICATIONS THAT WORK FOR YOU!

I’m a bottom line kind of person, so what’s the bottom line? Banks are overwhelmed and borrowers are confused- but there is hope!

“Until recently, the Making Homes Affordable Program was looking like another government failure, but it’s numbers have improved sharply, with 650,000 borrowers getting trial loan modifications and 375,000 eligible to convert to permanent modifications by the end of the year. “

What’s more?

The treasury department has announced plans to send ‘SWAT teams’ into the largest mortgaging servicing companies in order to work with their executives and boost the loan modification success rate.

So what does this mean for you? Even with a jump in the Making Homes Affordable Program, the problem remains that record numbers of people need help. Approximately, 7.5 million US households are behind on their mortgage payments and 25% of Americans are underwater on their mortgages. YES, 25% of people are facing short sale situations! Chances are, if you are part of the 25% of people facing a short sale mortgage situation, you’re not entirely sure what to do, or where to turn for help. It’s not like anyone expects this to happen, or prepares for it by taking a class, but with all of the paperwork and procedures you have to follow you might think a class would be great!

Don’t worry, I’ll keep it simple for you. Starting with the first step; like I’ve been preaching, the first thing you want to do if you’re facing a short sale situation is to find out if you’re eligible for a loan modification.

This isn’t always as easy as it sounds- banks are overwhelmed, understaffed and undereducated about government programs. As a matter of fact, 60% of borrowers who have even QUALIFIED FOR A LOAN MODIFICATION have either failed to submit paperwork or turned in incomplete paperwork, making a loan modification impossible.

It’s a big, frustrating time suck. If you attempt to do a loan modification on your own, you’re expected to expertly navigate through the loan modification process while negotiating with the bank. How could you possibly negotiate with an understaffed, underpaid loss mitigation department when you don’t even really know what you’re doing? That’s what’s really going on here and that’s why we LOVE our loan modification specialists! They are PROFESSIONAL negotiators who are licensed and have an unmatched track record. Loan Modification companies are designed to help you execute a successful loan modification, which as I’m showing you can be extremely difficult. Especially difficult when you have unidentified, silent obstacles challenging your chances of making this happen. For instance, did you know that loan servicers benefit from your delinquency? Loan servicers are the mortgage companies that collect payments from homeowners, they do not own the loans. They collect fees from the investors who do own the loans, and their fees often increase the longer a borrower remains delinquent. Some lawyers argue that mortgage companies are using the short-term trial modifications as a stall tactic to get a few more dollars from borrowers who otherwise would make no payments.

Again, the bottom-line… if you can’t afford the long-term mortgage solution that your lender provides, it’s not the right mortgage for you! Don’t waste your time and money. No new initiative is going to come to the rescue. The high rate of unemployment is a major factor in current foreclosure rates & even under the Making Homes Affordable Program many borrowers who are receiving unemployment are unlikely to qualify.
If you know you’re part of the 25% of people who are underwater with their mortgage and KNOW they don’t want to get the run around- my best council is to contact our loan modification specialists. (see loan modification page at the top of our website) From here, you’ll be able to identify if a loan modification will work for you and let them do the rest of the work, ie: details! Our loan modification specialists go to work to help you find out what you can afford, compile a convincing case to negotiate with your lender & all of the follow up paperwork that needs to take place in a timely fashion.

If you’re attempting to complete a loan modification, please note that you have options when it comes to keeping your lender accountable. If you’re at work with a national bank and you believe they’re acting unethically you can file a complaint online with the Office of the Comptroller of the Currency. The OCC charters, regulates and supervises all national banks, and their complaint form can be found online at www.helpwithmybank.gov

Whatever you decide to do, take action. Bellevue Short Sale Experts are here to equip you with the knowledge to tackle any short sale/loan modification mortgage situation.

We invite your questions & comments, best of luck to you!

Categories: Loan Modifications, Modify, Short Sales, pre-foreclosure
Tags: banks, Bellevue, loan modification, east side, deficiency, mortgage, mortgage payments, stop paying, banks, short sale, deficiency, east side, Eastside, foreclosure, Kirkland, loan modification, mortgage, mortgage payments, pre-foreclosure, Seattle, short sale, stop paying