Home foreclosure rates continue to soar. And loan modifications certainly haven’t turned out to be the magic solution we hoped. But they remain our best near term solution.
A mortgage modification is simply a modification to the original mortgage agreement. It could be an interest rate reduction. It could be a principal reduction (not likely). Since very few people relish the thought of moving Mortgage Modification is the obvious near term solution. As long as homeowners have mortgage payments modestly in line with local rents, there is very little incentive to look for a more permanent solution.
A flood of applications has overwhelmed the banks and caused for serious delays and terrible stories of bungling and mishandling of applications. As a result, many people believe that mortgage modification relief is really not available. And, believe me, sometimes it seems that way.
The HAMP loan modification program holds the most hope of any modification program. It’s simply head and shoulders above all other programs. The only problem? Qualifying isn’t always easy.
Requirement number 1: The loan must be less then $729,000 and made prior to January, 2009.
For more information contact a local real estate expert or real estate lawyer. Resources include La Jolla Homes for Sale and Rancho Santa Fe Real Estate.
Next, the borrow must show a hardship. Normally this is not a problem and the hardship requirements are not strict. The intent here is simply help folks who need help (verses folks who would simply like to pay less)!
Of course, the programs can only help folks to a certain degree. That is, homeowners must still have enough income to make most of their current payment.
Who funds all this? Why we do, of course! The U.S. has earmarked some $80 billion for emergency housing relief. Lenders are compensated for participating.
The application process is relatively simple and straightforward…sorta’ like doing your taxes – NOT! It is arduous but it can be done with a little help from an experienced adviser. Tons of support material is available from the banks and from the government and their endorsed non-profit associates. Smart applicants will also avail themselves of support from a reputable, experienced, private, for-profit source.
Article by Rancho Palos Verdes Homes for Sale. Also, a special thanks to Laguna Beach Real Estate for Market Statistic resources.
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