Mortgage Modifications Hit Record in December; Should You Modify?
Posted on | January 29, 2009 | 7 Comments
There were 122,000 mortgage modifications completed to avoid foreclosure in the month of December. A record 239,000 total modifications were negotiated. Regulators and lawmakers have criticized the mortgage industry for these modifications because many of these same mortgages are failing within six months of modification. Many think that these preventive measures have been too slow making them ineffective. The Federal Reserve is taking steps to slow foreclosures by encouraging modifications of at least $74 billion in loans that they own. What does this mean to you?
Unfortunately, we cannot blame this completely on subprime. Data has shown that more prime borrowers than subprime borrowers were facing foreclosure in December. The total number of foreclosure starts rose 34,000 from November to December; almost 75% of those were prime borrowers. This is scary news as it seems the individuals who have average to good credit are now facing foreclosure on their homes. Ultimately, a mortgage modification is the best alternative to a short sale or foreclosure.
The most important part of the decision to get a modification is to take action early. If you sense that you will see financial constraints in the next six months then it is a very good idea to start considering a loan modification. Do not feel as if you are doomed if you are in this situation. MANY Americans are in the same shoes as you and the government is doing things to help you out. So make sure to take some action!
Related Articles:
Will Mortgage Rates Really Go Under 4%?
How To Get No or Low Closing Costs on Your Mortgage
Average Mortgage Rates Tumble to 5%, What It Means to You
Comments
7 Responses to “Mortgage Modifications Hit Record in December; Should You Modify?”
Leave a Reply
January 30th, 2009 @ 2:41 am
[...] More here: Subprime Blogger » Mortgage Modifications Hit Record in December … [...]
January 30th, 2009 @ 5:23 am
[...] news by unknown « Ligonier Living: Did you get a subprime mortgage from [...]
January 30th, 2009 @ 11:15 am
I was wondering if you have heard anything about the Nasdaq’s “PORTAL Alliance”? This consortium of Rothschild-influenced banks was created in November of last year, but there has been a complete media blackout regarding any of its activities since it was created.
When you look at the list of financial institutions and banks that are “members”, everything that has happened in the financial markets since last November (a fascist coup) starts to make one uneasy…
From Forbes.com:
(1744-1812) Meyer Amschel Rothschild:
Meyer Amschel Rothschild helped invent modern banking by introducing concepts such as diversification, rapid communication, confidentiality and high volume. The superlatively discreet foreign-exchange banker diversified from the very beginning, selling antiques and procuring loans. Remarkably, Rothschild was willing to cut into his own profits in order to secure future business.
And, earlier than most, he understood that time and information meant money, and he pulled out all the stops to remain in constant contact with associates across Europe. That network came in handy when he helped finance England\’s war effort during the Napoleonic Wars. Rothschild institutionalized his bank with a far-sighted will that ensured the continuation of his business. Considered a founding father of international finance, his banking empire–thanks to his five sons–had expanded to London, Paris, Vienna and Naples at the time of his death.
Corporate Heirs:
Merrill Lynch (nyse: MER ), Lehman Bros. (nyse: LEH ), Bear Stearns (nyse: BSC ), Goldman Sachs (nyse: GS )…
http://www.forbes.com/business/2005/07/21/rothschild-banking-international-cx_0721bizmanrothschild.html
——-
PORTAL Alliance:
The founding members of The PORTAL Alliance are: Bank of America, Bear Stearns, Citi, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan, Lehman Brothers, Merrill Lynch, Morgan Stanley, NASDAQ, UBS and Wachovia Securities.
(see: “PORTAL Alliance” – 144a)
http://biz.yahoo.com/pz/071112/131151.html
http://ir.nasdaq.com/releasedetail.cfm?ReleaseID=275224
http://www.reuters.com/article/companyNewsAndPR/idUSN1245320920071112?sp=true
http://www.portalalliancemarket.com/
Thanks for your time and please continue your work!
JL Wallace
January 30th, 2009 @ 1:18 pm
I have been tempted to modify my mortgage and I think the time is finally here. The rates are incredible now and it would have us a ton of money.
January 30th, 2009 @ 8:27 pm
“The most important part of the decision to get a modification is to take action early. If you sense that you will see financial constraints in the next six months then it is a very good idea to start considering a loan modification.”
It is clear that you have not done enough research.. banks will not do anything for your mortgage unless you are already in default (i.e. late at least)…
The banks are unwilling to lower principal amounts which is what is truly necessary. The banks can already estimate.. they could have the same loss, keep people in homes.. but they’d rather evict you and own your home.
That… my friends is the truth.
January 31st, 2009 @ 5:37 pm
[...] last week, we reported that mortgage modifications hit a record in December. The troubling issue is that many of these modifications are from PRIME borrowers who are [...]
February 9th, 2009 @ 4:58 am
[...] Mortgage Modifications Hit Record in December; Should You Modify? [...]