What was hailed as the saving grace for those in foreclosure has turned out to be more hype than reality. For the overwhelming majority, loan modifications don’t work.
With urging from the Obama administration and pleading from community activist groups like ACORN, banks and mortgage lenders sought to quell the rising tide of foreclosures by increasing their attempts to modify troublesome mortgages. Yet less than 50% of all loans modified resulted in payments being lowered by more than 10% and many borrowers re-defaulting on those modifications.
While loan modifications may have looked nice in the media, the reality of the situation is that too many people obtained loans on properties they could not and still can’t afford.
On Friday, the Federal Office of the Comptroller of the Currency and the Office of Thrift Supervision released a report that analyzed of nearly 35 million loans worth more than $6 trillion dollars.
The report helps explain why many loans are falling back into default after being modified. Of course, local groups and borrowers claim the modifications aren’t enough. They even went as far as to say that the modifications weren’t “generous” enough. I’m sorry…when did a loan modification turn into a gift?
Is this the direction this Country is headed in? A Country wherein those who have not EXPECT to be GIVEN GENEROUS reparations for their own inabilities? I don’t want to turn this post into a political statement but one can only imagine how these ideological foundations of entitlement are being progressed.
It seems the only people benefiting from the surge in loan modifications are the scammers who are preying on those seeking loan modifications.
It’s so bad that many states are making it illegal for these companies to do business. Here in Florida the Foreclosure Rescue Fraud Prevention Act was passed in October to stop these unscrupulous businesses.
If you are truly a good candidate for a loan modification, we have attorneys that we work with that will help you. If you have been turned down for a modification or if your home is worth less than what you owe on the home, then perhaps a short sale would be the best course of action for you.
For more information on either a short sale or a loan modification, feel free to email me or give me a call at 954-709-7461 and it would be my pleasure to assist you in either case.
Related posts:
- Buying Your Fort Lauderdale Real Estate Home or Condo – Getting Started
- Foreclosure Rescue Fraud Prevention Act
- Fort Lauderdale Real Estate Short Sale Tips, How To Do A Short Sale Tip 1
- Short Sales In The Fort Lauderdale Real Estate Market Made Easy
- Make Sure You Understand Taxes Due On A Short Sale
- No Wonder So Many Agents Don’t Have A Clue How To Do Short Sales!
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