Mortgage Loan Modification – Can Making Home Affordable Help You?
Posted on | August 28, 2009 | 4 Comments
The mortgage loan modification program Making Home Affordable has greatly changed the lives of many Americans. Having the ability to modify your mortgage into a reasonable payment has assisted many home owners to the point that they can avoid foreclosure. Prior to the program it was very difficult for bad credit borrowers to be able to gain access to reasonable mortgage rates. Most lenders and financial institutions were not lending money to prime borrowers no less subprime borrowers prior to March of 2009, but this all changed with the Making Home Affordable Plan.
The plan is very in depth and contains a huge amount of financial jargon so it is extremely hard for most people to understand in its entirety. The good thing about this issue is that companies and individuals have created a system where you can pay a fee to gain help with the program. You have probably seen advertisements all over the Internet and television stating “Obama’s Refinance Plan” or “Let the Government Bail You Out.” You will definitely have to pay a fee for their services but it might be worth your time and effort.
The Making Home Affordable website is quite extensive. Unless you have several hours and possibly even days to go through it all, you will never be able to read everything. There are many small quirks here and there that you might miss if you are not assisted by a professional. Feel free to try and go through the process without help, but from experience, the website is quite complex and the plan is very in depth so be aware of this.
President Obama and his staff have done everything in their power to help you stay in your home and avoid foreclosure. They have also help many bad credit borrowers have access to moderate mortgage interest rates. With mortgage rates near all time lows you do not want to miss out on this opportunity. It may take a little bit of extra time and effort and maybe even some money, but it will be well worth it in the long run.
Getting a mortgage loan modification may be just the thing you need to help you lower your mortgage payment and keep your house in your possession. Your mortgage was the biggest financial decision you made in your life so please do not let it slip through your fingers and ruin your financial career for over a decade. There is help out there, so go and get it!
Author: Alan Lake
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4 Responses to “Mortgage Loan Modification – Can Making Home Affordable Help You?”
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August 29th, 2009 @ 10:22 am
You don’t have to pay for help with a modification, even for the Home Affordable Modification Program. You can apply for free with your mortgage servicer, as long as they are participating, but if you do want to have a third party help you with it you can call the government HUD agency and they can help you understand the program and see if you might qualify for free. Their website is http://www.hud.gov/ to find a counselor that can help you. Don’t get sucked into paying a 3rd party thousands of dollars for help!
August 29th, 2009 @ 2:20 pm
Thanks for the advice Chris! This could save some people a ton of money!
August 30th, 2009 @ 1:40 pm
Doesn’t it seem strange that THE ONLY ADVICE government officials give homeowners having mortgage payment difficulties is to tell them to go back to their lender, or through a HUD/FHA Counselor (and then back to the lender) to obtain Home Loan Modification help?
Let’s investigate this for just a moment.
During the home sales boom cycle the lenders became VERY GREEDY. As the opportunity for profits went up, the ethics/legality/morality of the loans they made went down. Later in this process loans were even being made to persons with no jobs and little, or no income at all!
Oh, and where was the government during the loan feeding frenzy? Largely, they turned their heads and DID NOTHING!
The reports from borrowers who have recently completed Home Loan Modifications using these government recommended processes have been streaming in lately. VIRTUALLY ALL OF THESE REPORTS CONCLUDE THAT THE LENDER HAS GIVEN THE BORROWER VERY LITTLE, OR NO HELP AT ALL!!!
But, the government continues to tell borrower that its assistance and the help of the lender is the best help available! WONDER WHY? IT’S ALL ABOUT THE MONEY!
Using the same government-sponsored logic, the best way to prepare your income tax and maximize your deductions is to go to the IRS for help!! Why do so many people (even the government officials we are speaking about) hire help to prepare their taxes? SINCE WHEN HAS FREE HELP EVER BEEN THE BEST HELP AVAILABLE?
So, what does the AVERAGE OUTCOME of a Home Loan Modification THAT YOU ACTUALLY PAY FOR REALLY LOOK LIKE?
The firm I work for has averaged monthly mortgage payments reductions for borrowers from between 20 – 50% for up to 5 years and then converted their existing loan to a fixed interest rates in the 4 – 5% range for the full balance of the mortgage term! These averages come from over 200 completed resolutions!
Our firm is NOT ATTORNEY-BASED (unless spending more money for the service makes sense to you), but does have substantial knowledge about specific legal issues. Our firm has reasonable performance guarantees, a 100% Money Back Guarantee and reasonable program fees (well under $2,500).
So, let’s do the math. Say you are a homeowner who has an existing 6.75% fixed rate 30 year mortgage of $200k, that has a payment with interest of $1,298. Using the average results shown above, your new payment at only a 30% modification is $909 for up to 5 years and you will save well over $80,000 in interest over the life of the note!! NOW THAT’S A MORTGAGE MODIFICATION WORTH THE FEES, DON’T YOU THINK??
Ok, so you don’t plan on staying in the house much over 3 years – using these same numbers you will save over $14,000 in monthly payments alone in that time!! IS THAT A MODIFICATION WORTH THE FEES?
The answer is simple folks – THE LENDER AND THE GOVERNMENT THAT REPRESENTS THEM DOESN’T WANT TO GIVE THE MONEY BACK! It’s that simple!
August 31st, 2009 @ 11:01 pm
If anyone has had any luck with any of these companies, could you please post it for the ones that cannot find one to work with you. We’ve almost lost once and just got a second chance that want last long so I need to get something done now, so if anyone knows the right number to call, i am sure a lot of people that hasn’t found them would appreciate it but check out http://www.obamamortgagerelief.org/.