Upside Down Mortgage

Archive for September, 2008

Loan Modification Of America

The Wall Street Journal reported in July, 2009 that President Obama is now expanding the plan to help the number of borrowers who can refinance their homes.  The administration said that borrowers with mortgages worth up to 125 percent of their home’s value will now be eligible to refinance under its program, up from a 105 percent limit.

According to the new plan, borrowers must be current on their mortgages and have loans owned or backed by government controlled mortgage companies Fannie Mae or Freddie Mac.  One of the challenges with the government plan is that it does not help those who are in severe circumstances, either behind on payments or facing foreclosure.  The plan does expand the opportunities for those not facing foreclosure to get help, but if you are in the midst of a foreclosure proceeding or if you just received a foreclosure notice, you need some other form of assistance.

The government is hoping that by raising the percentage, many more Americans will be assisted in getting the help they need to stay in their homes.  Recent statistics state that almost 30 percent of American homeowners with mortgages owe more than their homes are worth (according to Economy.com).  The government’s initial plan seems to have fallen short of expectations as only 20,000 people were able to participate in the program, well short of the 4 million it was projected to help.  In fact, as late as April the government was denying there was any need to expand the program.

Interest rates have actually been rising of late, making things even more difficult for Americans.  Rates on 30 year fixed rate loans currently average 5.49 percent, up from a recent low of 4.84 percent in April.  Government agents hope that this plan will also lower the overall risk for Fannie Mae and Freddie Mac by allowing more people to stick with their mortgages and not default.

Loan modification attorneys are still working tirelessly, throughout California, to help people renegotiate the terms of their loans and get a better mortgage payment.  While the government is having a hard time with their refinancing program, California loan modification attorneys are spending morning, noon and night keeping people in their homes through California loan modifications.

A loan modification renegotiates the terms of your home loan, helping you get lower payments that you can actually pay.  Rather than see your home go through foreclosure and having to move, you can enjoy a new level of financial freedom as well as a renewed outlook on life.  With the unemployment rate in America continuing to rise and the financial future in doubt for many Americans, now may be the time to take advantage of a loan modification.  A loan modification attorney can work with you to get the best deal possible, and make sure that your interests are focused upon.  Lender driven loan modifications focus on the lender’s needs, and even some government programs focus on the government’s bottom line.  A loan modification attorney can represent you and you alone.

About the Author:

Loan Modification Help Center - loan modification company - is a free gathering place for resources and information on the rapidly evolving field of loan modifications. The internet is over flowing with information on this subject with the problem being that there can be as much bad information and advice as good. For a homeowner struggling with mortgage payments and facing the possibility of foreclosure, the importance of getting straightforward information with no agenda or ulterior motive is of utmost importance. The resources we make available at Loan Modification Help Center are just what homeowners need as they seek to understand their options and get the information they need to make the critical decisions involved in a loan modification. For more information visit http://loanmodificationhelpcenter.org.

Article Source: ArticlesBase.com - Loan Modification Help Center – President Obama Continues to Pass Legislation

Better Life America, Mod Pilot Loan Modification

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Loss Mitigation Specialist Training

If The Obama administration can't coax mortgage providers in California into action, perhaps they can shame them. While pushing forward the Mortgage Modification program designed to help millions of American citizens avoid foreclosure, they have been naming the worst banks to try to shame them into changing their policies.

Banks usually realize that it is in their best interests to help homeowners make the necessary loan modifications, because foreclosures are costly for them as well- if they're not being myopic, they'll realize that a healthy housing industry will result in more profits for them. But getting a mortgage lender to reduce interest and be reasonable with loan mods is easier said than done.

But according to the government, the leader is Saxon Mortgage Services (a subsidiary of Morgan Stanley), and JPMorgan Chase and Citigroup are also showing willingness to cooperate with the administrations goals and help homeowners out.

The worst of the bunch? Wells Fargo, and Bank of America, with around only five percent of its loansin trial modifications. The White House has responded to this poor showing with their "Mortgage Plan", a requirement that all borrowers go through a three month trial period to prove they can make payments on time before they get caught up in the full-fledged loan. If the goal is met, the borrow gets a cash incentive that reduces the amount of principle they must pay in the future. And there are even more incentives involved in the Mortgage Plan: three thousand dollars off the principle for every year that payments are perfectly paid.

But it's an uphill battle. Banks are often not equipped to provide loan modifications on the fly because it's a fairly new concept and is often just not profitable. In the old days, banks existed only to lend, collect, and process mortgage payments. They would be engaged in many kinds of investments, but the retail sector was their tried and true method of garnering profit. It was up to separate debt relief companies to provide services for helping homeowners consolidate their debt or mitigate their losses. Many banks find it difficult to set up loan modification systems: they have train staff, make new decisions, set protocols and guidelines, engage in a new kind of management that may be utterly foreign to them. Big banks are usually pretty uneasy with such a high volume of sudden change.

And secondly, banks make decisions based on profits. They only want to take actions that will benefit their profit margin, and loan modification doesn't always fall under that category. Encouraging banks into making decisions that will result in cash loss is no mean feat. Perhaps that is why shaming them into it seems to be working better.

So from the perspective of the homeowner, these policies are a good thing. However, if you own a bank, you may be less than pleased.

About the Author:

For more information on California Loan Modifications and short sales, visit http://wwww.accesslossmitigation.com" target="_blank">www.accesslossmitigation.com">http://wwww.accesslossmitigation.com

Source - California Loan Modification Reform

In danger of foreclosure? loss mitigation training

Housing Bubble San Francisco

The recent fluctuations in the real estate market have made many individuals aware of the importance of market trends like never before. While real estate was always advertised as a guaranteed investment, there really is no such thing. However, some markets show more resilience than others when the market moves up and down. Marin County real estate is a good example of this. Using this area as a case study, one can begin to understand what makes some areas consistently successful and what makes others more subject to bubbles and busts on the larger market.

Marin County is located just north of San Francisco. Though it is close to the city, a great deal of Marin County real estate offers buyers the opportunity to feel a bit removed from the hectic city life. This has always been a selling point with successful markets. Many homeowners prefer that their house gives them a feeling of separation from the trails of everyday life. The very fast-pace of urban areas tends to break down the sense of community that exists in other places, as well. This is another selling point for areas which have their own character.

Marin County real estate also has the advantageous characteristic of being located between two very desirable locations. San Francisco is south and wine country is north. This means that residents have options no matter what they may wish to do with their day. This is the old “location, location, location” adage seen in action. The location really does matter and, most often, it matters more in terms of what resources to which the house enjoys close proximity. The location of the house itself is oftentimes determined as advantageous or otherwise by what resources are nearby.

There is another reason that Marin County real estate remains very popular: The communities in this area are generally safe. When individuals decide to have families, they tend to want to move away from more crowded areas. Aside from concerns about crime, there is always a concern about traffic and other elements of city living that are dangerous to children. This has made Marin County consistently popular with those looking for a more relaxed and friendly environment for their children. The wide variety of homes available, of course, plays into this popularity a great deal. Generally, a more diverse selection guarantees that there will be more broad-based appeal.

About the Author:

Peter Narodny offers over 30 years of experience to home buyers and sellers in San Anselmo real estate and Marin real estate .
They are the top San
Anselmo realtor team and have sold over 400 homes in the last ten years alone. If you're looking for a Marin realtor that offers the most sound advice and knowledge of , then visit MarinRealEstate.net today.

Source - Why Some Real Estate Remains Popular

"Housing Bubble" is Really a Land Bubble