Mortgage Modifications Gaining in Popularity; Is Modifying Right For You?
Posted on | January 31, 2009 | 4 Comments
Late 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 attempting to avoid foreclosure. We have heard all about the subprime mortgage crisis, but now it seems to be flowing into the prime borrowers. The initial problem was caused by subprime borrowers having the inability to pay their loans which caused the economy to head south fast. Now prime borrowers are feeling the pinch and are attempting to modify their current mortgages. Is this something that you should consider?
Now that layoffs are commonplace in America, many more “prime” mortgage borrowers have a reason to be concerned. It is almost impossible to make mortgage payments being unemployed and that is what many unfortunate Americans are trying to do. Two areas of the economy that are going to feel this economic downturn very hard are print media and retail. Print media is a dying horse as the Internet has changed the way we access information. It is likely we will see many job cuts in this industry. Retail will struggle because consumers are only buying staple products like toilet paper and laundry detergent. Any high end retailers are going to have intense job cuts in the next six to twelve months.
We are not making these statements to scare you; we are merely trying to get you to look objectively at your current financial situation. If you feel insecure with your job in a struggling industry, then it might be time for you to consider modifying your mortgage.
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4 Responses to “Mortgage Modifications Gaining in Popularity; Is Modifying Right For You?”
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January 31st, 2009 @ 8:17 pm
[...] news by unknown « Mike Garibaldi-Frick: Loosen Mortgage Lending [...]
February 1st, 2009 @ 12:04 am
[...] See the rest here: Subprime Blogger » Mortgage Modifications Gaining in Popularity … [...]
February 1st, 2009 @ 7:26 pm
[...] Mortgage Modifications Gaining in Popularity; Is Modifying Right for You? [...]
February 2nd, 2009 @ 11:25 am
I tried for a loan modification, however the cost was 3% of my loan amount and they could not assure me it would go through. That mean I would have to lay out $3,000.00 not being sure the deal would work.
What is my next step ?