Understanding Mortgage Modification Guidelines By Debunking The Myths
A mortgage modification is an ongoing change to an existing loan terms in order to better accommodate the borrower and avoid foreclosure. This modification is a big change to both the lender and the borrower, hopefully to avoid any future mortgage mishaps. During this process, understanding mortgage modification guidelines are necessary to aiding the process along.
Here are the top myths of mortgage modifications according to Moe Bedard, mortgage modification guru.
Myth 1: Non-profit mortgage modifications groups, and like organizations are available to protect a homeowner’s best interest.
Where groups like Hope Now and 995-HOPE are not bad organizations or will do more harm than good they are often superficial in their assistance. These groups will often not dig deep. They have one focus income levels, not legalities of loan contracts. Legal issues such as loan contracts will actually have them stuck in the court system, which these companies would rather avoid with quick, fast loan fixes.
Myth 2: Lenders are willing to offer principal reductions on mortgage balances when the loan is more than what the home is worth.
Even though this can happen, it rarely does. When it does occur, generally there is a first and a second mortgage. The second mortgage is usually negotiated down from its original loan amount to about 15 cents on the dollar. If everyone was able to call into their mortgage company and have their mortgage reduced just because they were a little tight on budget, this would devastate the economy more. With the overall downturn in the economy, this would eventually just crush the entire mortgage market.
Myth 3: Lenders are being proactive and helping homeowner’s everyway they can.
This is not true. The longer they hold out, the more money they are making. Modifications save foreclosures, but do deplete the over all profits made by the mortgage lender. The lenders should have been more proactive during the initial lending process to avoid the current issues homeowners are experiencing including mass foreclosures due to inability to pay primary loans.
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For additional ‘need to know’ information about mortgage modification loans - Visit our simple, no nonsense loan modification guide and resource: MortgageModificationLoan.net (Published: May 2009 - Image: www.freedigitalphotos.net)
Understanding Mortgage Modification Guidelines By Debunking The Myths
Comments
Comment from veronicabenn
Time June 15, 2009 at 8:04 am
Check out http://obamamortgage2009.blogspot.com or obamamortgage2009.blogspot.com There needs to be a program for the elderly but not quite to retirement age for mortgage modification when the have lost their job during this particular recession. I made a decent wage because I put my time into a company and now have no job. I am looking at $10 - to $12 hr jobs after working all my life. You can’t make a mortgage payment on that kind of money. I will eventually lose my home.
Comment from alabama mortgage
Time July 17, 2009 at 7:18 pm
The Obama mortgage modification FDIC approved mortgage credit is the way to go. By refinancing you mortgage you can claim a credit on your tax return
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Comment from Eddie Gonzales
Time May 28, 2009 at 6:06 pm
It’s a shame that theirs mortgage modification companies scamming people out of money, I went with a Law Firm after researching them extensively because of all the fraud. Luckily the company I went with was legit and cut my mortgage rate in half. If my house is on the line I want a lawyer representing me and that’s exactly what I got. Community One Law Group specializes in Real Estate cases and they were extremely professional and helpful. I dealt with their manager Dan his number is 1-866-215-6703 EXT 274. I cannot say enough good things about this company they saved my home and with the money I’m saving I caught up on all my bills, I wish I knew about them years ago.