Thousands of Borrowers are Staying in their Homes for Free!
Across the U.S. thousands of homeowners are staying in their homes for years without paying their mortgage. Many times if you are going through the process of a loan modification you might wonder how many other people are in the same boat.
The collections departments that are working hard on the lenders behalf would lead you to believe that you are one of a few and that you only have a few days to make that vital mortgage payment or even partial payment before you are evicted form your property and put out by the Sheriff. Judging by the figures below these scare tactics shouldn’t scare anyone. The truth is, you have time to make the decisions that you need and get the right loan modification for you and your family.
According to CNN, four million borrowers are delinquent on their loans and have their cases in the hands of the lenders attorneys.
Two thirds of these borrowers have not made mortgage payments for more than a year and one third have not made payments for more that two years.
It takes 565 days to foreclose on a borrower from beginning of default to the auction sale.
New York takes longer, 800 days and if you are in lucky old Florida it takes 807 days due to the problems with robo-signing scandals.
So once again, take the step to get educated, know what is involved when it comes to a loan modification and have patience!
As Always
DIYLoanModKit.
Categories: foreclosure, Loan Modification Tags: delinquent loans, diy loan modification, DIYLoanmodkit, do it yourself loan modification, foreclosure
Top Banks Have Poor Loan Modification Rates.
Bank of America, J.P. Morgan Chase and Wells Fargo have all been penalized by the government for poor performance in the Obama administrations HAMP plan (home affordable modification program). The government will not pay them when they modify delinquent loans.
This is the first time that the administration has decided to do something about lenders and their participation in the HAMP program. It is using what it can right now – money to entice the banks to do better. Each servicer is eligible for up to $4500 over three years if a borrower enters a trial loan modification and the loan stays modified through those three years.
Diyloanmodkit.com feels that more needs to be done. The financial crisis has been going on since 2009. How much longer will the banking system be allowed to drag this out? Nobody want to be in a state of limbo unsure of what is happening with their loan or what is going to be their next move. Most people donot want to be in foreclosure.
Lenders need harsher penalties if the don’t modify a certain amount of loans per month or meet a quota. This crisis is not in its infancy and it is about time lenders worked out a solution that can appease both the lender and the borrower and let us all move on.
As Always,
Diyloanmodkit.com
Categories: foreclosure, HAMP, Loan Modification, Obama plan Tags: Bank of America loan modification Bank of America HAMP program, diy loan modification, do it yourself loan modification, Loan Modification
Principle Reduction Maybe Coming Soon!
diyloanmodkit
A 27-page proposal was received by U.S. banks last Thursday from state attorneys general and several federal agencies that could require them to reduce loan balances of troubled mortgage borrowers.
The proposal details a code of conduct for banks on how they should treat borrowers going through a loan modification of foreclosure.
The proposal represents the clearest indication that the 50 state attorneys general are working hand-in-hand with the Obama administration and other regulators to pursue a significantly broader settlement against the banks than any of the federal agencies might be able to win by themselves.
The proposal outlines formulas that would force banks to consider offering loan write-downs to troubled borrowers more regularly during the modification process. Banks have resisted reducing loan balances in part because of concerns that it could encourage more borrowers to stop making payments in order to receive smaller loan.
In the next few weeks, State and federal officials plan to begin meeting with banks to negotiate a final agreement on the code of conduct.
Let’s see how this works out.
