June 1st, 2009 by michael e. riley
Sheila Bair, the chairman of the Federal Deposit Corp has noted that the loan modification efforts are having positive results, but their ultimate success will most likely depend on the economy and mortgage market.
“My sense is that it’s having an impact,” … but “there is obviously still distress in the mortgage market” Bair said in answering questions after a speech to the Chicago Federal Reserve Bank’s annual bank structure conference.
According to Bair, most mortgage holders will continue making their monthly payments if they are brought down to the affordable level, regardless of whether they are in the upside-down mortgage scenario or not. Upside-down mortgage refers to a condition when a home value is lower than the mortgage owed …
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April 13th, 2009 by michael e. riley
This guide provides an overview of the FDIC’s program to assist bankers, servicers, and investors in this process. It outlines FDIC program terms at IndyMac Federal Bank, offers insight into the specific portfolio characteristics that drive modification modeling at that bank, and provides a framework for developing and implementing a similar program at your institution.
Federal Deposit Insurance Corporation (FDIC) official Loan Modification Guidelines.
FDIC “Loan Mod in a Box” additional Loan Modification Tools
Background
Although foreclosures are costly to lenders, borrowers and communities, the pace of loan modifications continues to be extremely slow (around 4 percent of seriously delinquent loans each month). It is imperative to provide incentives to achieve a sufficient scale in loan modifications to stem …
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April 2nd, 2009 by michael e. riley
By default, most people are optimists. We all like to think that if our government creates a policy in a time of a crisis we can all depend on it to fix the problem at hand. The Obama administration has moved very quickly to address the housing problems that we all face as a nation and I applaud the effort. Many call it the “Obama Loan Modification”. It is unclear, however, if the Obama Loan Modification effort is going to reach as many people as may need it. For some of these people the effort is the last resort before crossing into poverty.
There are many blog posts and news reports out there describing the plan, usually riddled …
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March 30th, 2009 by michael e. riley
Loan Remodification is a term that many people use when they are speaking about a loan modification. If you read a newspaper, watch television, surf the internet or even have a drink at your local neighborhood bar you can’t escape it, loan remodification is a new buzz word. There is a good chance you are even considering a loan re-modification for yourself. Just in case you have limited contact with the outside world, I will give you the basics. A loan remodification is when you change the terms of your loan with the lender you currently have, without refinancing. The reasons are as varied as the people that need them, but the most important one is to make sure …
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March 20th, 2009 by michael e. riley
After months of falling foreclosure rates filings are on the rise again. This comes as another wave of homeowners see their rate on their ARM (adjustable rate mortgages) rise and reset to higher monthly payment amounts at the end of last year. This is primarily due to Option Arm Loans where the interest of the loan is able to be deferred until a later date. That date for an unusually high number of homeowners came due at the end of last year and the beginning of this year.
Typically these type of loans have a cap built in to protect borrowers from getting stuck with an unreasonable payment amount however the downward spiraling of home values has pushed the loans …
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March 18th, 2009 by michael e. riley
Chris Hansen of Dateline NBC follows police with a camera crew while evictions are being conducted. The eviction victims are interviewed. This truly is a heartbreaking video. Be sure to explore your loan modification options and prevent foreclosure from happening. It is now easier than ever to perform loan modification and a number of government-subsidized programs have been created to help the struggling homeowners. Give us a call if you are unsure if the program applies to you.
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March 12th, 2009 by michael e. riley
If you ever wondered what the official Mortgage Modification Guidelines look like, we provided the highlights of the program below. “Making Home Affordable” will offer assistance to as many as 7 to 9 million homeowners, making their mortgages more affordable and helping to prevent the destructive impact of foreclosures on families, communities and the national economy.
The “Home Affordable Refinance” program will be available to 4 to 5 million homeowners who have a solid payment history on an existing mortgage owned by Fannie Mae or Freddie Mac. Normally, these borrowers would be unable to refinance because their homes have lost value, pushing their current loan-to-value ratios above 80%. Under the “Home Affordable Refinance” program, many …
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March 6th, 2009 by michael e. riley
When it comes to being behind on the mortgage payment, there is nothing worse because your home is the biggest bill you have and the one that is probably the most important. So when you are not able to pay the mortgage company, you are probably not able to pay a lot of other companies. This means that your credit has taken a huge hit and you are probably getting collection calls left and right from people who want their money and they want it now. If you do not have the cash on hand to bring your account up to date, then a foreclosure refinance may be your best option.
A foreclosure refinance is where you get your loan …
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March 4th, 2009 by michael e. riley
Bank foreclosure, or just foreclosure as it is more commonly referred to, is a process which is initiated by the mortgagee or a lien for the purpose of having the court order the debtor’s real estate sold to pay the mortgage or other lien. Basically foreclosure would take place if you were not making payments on your mortgage and the seller of the home or lender of your mortgage was forced to sell the house in order to receive the money owed for your mortgage.
Foreclosure is a very common problem, as many people go into the home buying process thinking that they will be fine, only to find out one they are actually in it that they have so …
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February 28th, 2009 by michael e. riley
In the past when homeowners were faced with job loss or a change in circumstances that restricted their ability to afford their home and were not able to pay their mortgage they would have the option to refinance with lower interest rates or sell their property. For most currently this is no longer a viable option.
Struggling homeowners cannot refinance due to plunging property values resulting in upside down mortgages, and even when they find a buyer for their property there is the challenge of not be able to sell for enough to repay the outstanding balance.
According to the data from the Mortgage Bankers Association (MBA) 11% of the nation’s home mortgages were delinquent by at least one payment, …
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