Some banks or lenders allow adjustments of loans, but what terms are meant for the borrowers to stop a foreclosure?
FDIC’s proposal is to modify a large number of loans for distressed borrowers. FDIC Chairman Sheila Bair said it could stop foreclosures with an estimate of 1.5 million.
The Federal Housing Finance Administration introduced “streamlined modification program” which will be applied to a loan guaranteed or belonging to Freddie Mac and Fannie Mae.
Borrowers should be over 90 days late on payments in mortgage to be qualified. They should not state bankruptcy as well.
Some banks now offer loan adjustments to help stop foreclosure. It include Citigroup, Bank of America and JP Morgan Chase. Most loan adjustment programs can be affordable for the homeowners because of low interest rates and extended schedules of payments or lessening of the remaining balance of loan.
Do not hesitate to call the lender about adjusting a loan. Make sure to get all information for future reference.
According to David Petrovich, writer of “Fight Foreclosure” and Society for the Preservation of Continued Homeownership member, said that it will be a long process as the lenders would avoid having losses on both parties.
Homeowners can call Hope Now hotline at 888-995-HOPE for counseling or (800) 569-4287 to talk to a counselor from Housing and Urban Development if lenders will not cooperate.
Petrovich has an additional idea for the lenders to negotiate which is for the borrowers to check a loan’s validity. Be sure to check for any mistakes or discrepancies.
TransUnion stated that delinquent borrowers will double by 2009 and as it increases, many scams reassuring homeowners that they will be saved from foreclosures are starting to show up so be sure to avoid those kinds of people.
In addition, these scams offer the homeowners to discontinue paying their mortgages and ask to lower the interest rate which should not be done.
Remember that cooperation is one of the keys to stop foreclosures.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.