Upside Down Mortgage

Archive for December, 2007

Loan Modification Affect Credit

Question: Loan Modification questions and risks.?

My dad' trying to do a loan Modification and he ask for my pay stub to prove higher household income. What does that make me? Am I a co-borrower? Is it Risky? I really don't want to do it but I feel obligated. How is it going to affect me, my credit, etc.
Any help is appreciated.
Thank you

Answer: Sounds as if he is putting you as a co borrower on the loan. It would affect your credit if he defaults on the mortgage even after a modification. Yes, it is risky, because he can muck up your credit before you are even out of the gate to do it yourself! Also, he may be committing mortgage fraud.

I hope he is at least working directly with the lender to do a modification, instead of paying a company a hefty fee for a bunch of promises to get him a lower rate.

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Loan Modification Fdic

Sheila Bair is the rather outspoken head of the Federal Deposit Insurance Corporation (FDIC), and for several months she has pressured banks and mortgage companies to take a more aggressive stance in regard to voluntary home loan modification programs. Unfortunately the loan industry mostly ignored her advice, and the foreclosure crisis did not slow down but instead gained more momentum. Now we face an economic catastrophe that is wiping out large financial institutions and causing banks across the USA to fail, and the FDIC has been forced to step in and take over some of the banks.

With the FDIC controlling failed institutions like IndyMac Bank – which handled a huge number of home loans – Bair has the authority to impose whatever home loan modification programs she feels are necessary. So far the moves she has made have met with success and appear to be helping save many families from losing their homes to foreclosure.

IndyMac was brought to its knees because of loose lending habits. The company made an extraordinary amount of high-risk subprime loans to people who could not afford them and should never have been offered them in the first place. These loans are riskier than most because they are granted to those consumers who already have a proven track record of not repaying their debts on time. When the housing market tumbled millions of these loans became delinquent and eventually entered foreclosure. Banks like IndyMac got caught holding the bag and were forced to go out of business.

Now that Bair is at the helm, loan modifications are being offered to borrowers who have good credit but got caught up in potential foreclosure problems due to expensive monthly payments associated with adjustable rate mortgages. Thousands of new modifications to prevent foreclosure are already being processed, and the FDIC intends to do more of them this year to help us survive the housing and credit crisis.

About the Author:

An expert in home loan modification programs, serving the San Diego, CA area.

Article Source: ArticlesBase.com - Fdic Spearheads New Home Loan Modification Programs

FDIC Consumer News - Spring 2009 - Foreclosure Rescue and Loan Modification Scammers

Bank Of America Loan Modification Mortgage

Question: What did the greed of banks cost America?

Just in my case alone. I was paying $1000 per month mortgage payment. Over the four years I have been out of my house that comes to $48,000. What did they gain? They stole the $40,000 I put down on my house plus over $5000 in legal fees.

Anyone one else agree that the banks have to use loan modification with anyone that has a home.

In congress they have refused to modiy the loans of anyone with other credit.

Answer: The banks under the regulations of the US Government cost millions of people their jobs, their homes and essentially "the pursuit of happiness". Our government will not stop choking us until we are pulseless. The banks will not stop choking us until we are 6 feet under. It will be interesting to see what happens when our unemployment rates out number our employment rates and everyone homeless and broke. That may be an extreme but good hardworking people are already learning what this is all about.

"We hold these truths to be self-Evident, that all men are created Equal, that they are Endowed By their Creator with Ceartain unalienable rights, that among these are Life, Liberty, and the pursuit of Happyness."