Loan Modifications Way Up With A Dramatic Increase In Prime Borrowers Going Seriously Delinquent
[caption id="attachment_104" align="alignleft" width="300" caption="Loan Servicers Say They Are Busy; Backed Up Trying to Keep People in Homes"][/caption] Loan Modifications and workouts have More than doubled in the past year! But they are being driven by more prime borrowers going delinquent. It has always been clear to me that this would happen as soon as the ARM’s and Pick-A-Pay loans started resetting. These borrowers are high income, high credit score homeowners who are obviously more likely to contact their bank and try to stay in their home. So becouse of the Governments newest push to keep people in their homes and homeowners who want to stay, Modification numbers have more than doubled. Instead of walking away and giving the banks no alternative to taking the...
Obama’s Home Affordable Modification Program Will Be Good for Short Sales!
[caption id="attachment_61" align="alignright" width="192" caption="Obama "][/caption] Freddie Mac and Fannie Mae’s Home Affordable Modification program is Good News for Short Sales. The Home Affordable Modification Program is a key part of the Making Home Affordable Program that was announced on March 4, 2009 under Obama’s Homeowner Affordability and Stability Plan. Short sales are complex transactions that involve delicate coordination and cooperation from several, often opposing parties-- servicers, appraisers, borrowers, lenders, Real Estate Brokers, sellers, purchasers, title agencies, and some times even mortgage insurance companiesand junior lien holders. A short sale usually gives a better outcome for everyone involved, even investors and communities, but because of the complexity and time involved, some servicers just pursue foreclosure instead, even if a short sale would have provided a much...
Foreclosure Options FAQ’s for Real Estate Short Sales
What is a short sale? The Preliminary Basics: Defaulting on mortgage payments can be a difficult situation. Many people find themselves falling into default, or are already in default, and don't realize that there are options available before the bank takes the house away. A short sale is an excellent way to avoid foreclosure and can give the homeowner some extra time and protection, as long as it is done properly. A Short Sale a(also known as a Short Pay) is when the lender agrees they will accept a sales price of fair market value for your property, even though the loan amount(s) are more than what the new sales price. So the lender takes a loss on the property, writes off the difference between what...
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