Home Loan Modification – Making Home Affordable is Working?
Posted on | October 5, 2009 | 5 Comments
The home loan modification Making Home Affordable was created to help home owners avoid foreclosure and stay in their homes. The issue at hand is that no one really knows what their options are when it comes to home loan modification. What exactly makes a home loan modification any different from a mortgage refinance? These are questions that we all want to know but no lenders are willing to give a definite answer.
The intention of the home loan modification process is to lower monthly mortgage payments so home owners are not spending all of their income on their home loan. Unfortunately some home owners feel that paying other bills are much more important than paying their mortgage payment. This is a horrible mindset to have but some uneducated adults feel that paying off credit cards is more important than making a mortgage payment.
There are many home owners out there who have refinanced at lower mortgage rates but most of these borrowers are financially savvy people and not the ones that are paying their credit cards before their mortgage payment. This begs the question, “what programs are available for the bad credit borrowers who have not been smart with their money?” The Making Home Affordable website has a ton of information but no specifics on this type of program.
There are many companies out there that are advertising mortgage and loan modification but what do these companies do. More than anything they seem like a consultation firm that is going to help you refinance to a lower rate. If this is the case, with some extra home work and help from financially savvy friends you could do this without have to pay the fees.
The question that must be answered is what loan modification program is available for bad credit borrowers? Is there a specific company that needs to be used or will any lender help these borrowers out? We all know that there are government plans to assist with home mortgages but what specific plan should I mention to my lender to get my mortgage payment lowered?
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Author: Mike Garner
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5 Responses to “Home Loan Modification – Making Home Affordable is Working?”
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October 6th, 2009 @ 2:02 am
That is actually true the, Make Home Affordable support information tells you a lot about eligibility and the rules for applying but very little about participating lenders. Anyone looking into refinancing or loan modification should however be able to get advice from an FHA approved mortgage counselor for free, they really should be up to speed and willing to answer those sorts of enquiries.
As for credit card debt, that is unsecured and does not threaten your home, just your credit rating, not a hard decision to make really.
October 7th, 2009 @ 7:11 am
I applied for a loan modification with my lender in April. After six months of numerous phone calls I can’t seem to get them to move forward at all. Each time I call to check on the status they ask for confirmation of the same information again and again. No one seems willing to help on the phone and I have no idea where my case stands. It seems as if they are stalling as long as possible.
So to answer the question- Is it working? Not for me.
October 7th, 2009 @ 4:52 pm
There is so much bad/inaccurate/incorrect information out there today on this subject!!
Credit is NOT a consideration for a Loan Modification because the borrower already qualified for credit when the home was originally purchased. A Home Loan Modification is achieved through a negotiation with the Loan Workout/Loss Mitigation Division of the Lender to make the home more affordable for the borrower and to keep the lender from foreclosing.
Government officials recommend that the borrower meet with a HUD Counselor, collect the necessary paperwork and negotiate with their lender directly. THIS METHOD HAS BEEN SHOWN IN MOST CASES EITHER NOT TO WORK AT ALL, OR TO YIELD ONLY MEAGER RESULTS!
Banks stand to lose billions and billions of dollars if they “volunteer” to reduce the amount of debt owed to them. On the other hand, the banks stand to lose billions and billions of dollars if they foreclose on troubled homeowners.
Homeowners are being told they will receive a “fair shake” from lenders if they self-negotiate. Self-negotiation also reduces the effects of companies who are “scamming” homeowners.
The TRUTH is that lenders do NOT want to lose billions and that self-negotiation allows the lender to “maneuver” the homeowner through intimidation into more favorable conditions for them. This process saves them at least tens of thousands, if not hundreds of thousands of dollars in interest per home! (Since when has FREE ever been synonomous with valuable!) Under the pretext of protecting the homeowner, they are being sent like sheep back to the shearers to minimize lender profit losses.
Expert 3rd party negotiation IS THE BEST METHOD FOR THE HOMEOWNER TO OBTAIN A MEANINGFUL LOAN MODIFICATION!
October 9th, 2009 @ 5:53 pm
It’s not working for me when today I find out after making two payments (Sept & Oct) (reduced payments while waiting for confirmation on refinance) the mortgage company reported me as being TWO MONTHS LATE TO THE CREDIT BUREAU~!!!!!!!
October 10th, 2009 @ 1:43 am
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