The in's and out's of Loan Modification. we will define who qualifies for a loan modification and why. And why the banks are allowing homeowners to do these mods for free.
Fannie Mae and Freddie Mac have been pressurized to suspend foreclosures so that borrows can explore loan modification. But they defend the dual track system of pursuing both loan modification and foreclosure as beneficial for all concerned.
Hopefully with these cases coming to light, there will be added incentive for lenders to work truthfully with home owners so that less homes are foreclosed on and more mortgages are modified so that owners can manage their payments.
Fannie Mae has launched an interactive website to help homeowners tackle the problem of foreclosures. It is a good educative tool that explains different scenarios that result from the choices made by a homeowner.
Many homeowners are seeking the help of the federal Making Home Affordable Modification Program to prevent foreclosures. The Obama administration will spend only a fraction of the sum it announced to help struggling homeowners.
The government has once again revamped their Affordable Modification Program in an attempt to make it 'work' this time. Unfortunately, the program targets the wrong groups of home owners and is attempting to force lenders to modify mortgages that may never work.
Bank of America is reassigning up to 2,500 of its mortgage origination officers to assume duties focused at loan modifications. The effort is part of the lender's initiatives to help consumers avoid possible foreclosures.
So assuming you want to keep your home, and fight, to do so lets establish your ultimate goal of your loan Modification. Based on information from the e-book Loan Modification Done Right by Mike Dunn, Here are the main characteristics of your loan that can be modified.
If like thousands of other homeowners in America, you're at risk for losing your home, you need to educate yourself about what options there are to help you avoid foreclosure. To learn about ways to keep your home, read on...
However, the problem with this strategy is that home owners with underwater mortgages are still left with less equity in their home than they owe; there is little incentive to stay in that home and keep paying that mortgage.
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