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Loan Modification

February 9th, 2009
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    Are your finances and marriage both in trouble? The downward spiral of the economy is also having a negative effect on the family unit. The threat of losing ones home creates tension in the family, often having a negative impact on all family members. One partner may want to let the home go to short sale or foreclosure because they feel that they have no options. Where as the other partner may want to hire a company or lawyer to help them negotiate a loan modification. Both of these are options, the first results in damage to each borrower’s credit, while the second is very costly with no guarantees. Another option, which is quite new to the loan industry, is do it yourself loan modifications. Your Basic Guide to Do-it-Yourself Loan Modification is a helpful and inexpensive guide that   can help you navigate your own loan modification so you can keep your home and not empty out your savings. This option is a happy medium between losing your home, without making an effort to keep it, and spending what money you have left on expensive attorney’s fees. It is important for couples to keep in mind that their home is an object that can be replaced, but their love and the life they have built together is irreplaceable.  

      During these stressful times couples have to remember to keep their lines of communication open. All too often partners turn away from each other, when what they need to do is move toward each other. Discussing their various options, and the pros and cons of each will allow couples to come to a joint decision one that is best for the family unit. In addition, parents must continue to talk with their children. Children are very intuitive and can sense when something is wrong, they may be afraid and not know how to express how or what they are feeling. Help your children understand what is going on, and give them the reassurance they need. In general, although ones home is very important do not risk the stability and happiness of the family unit in the process of trying to keep it.  

Recently Obama also announced that goverment sponsored loan modification is part of the key in fixing the financial crisis in the united states

 

Mortgage

Obama: Loan Modification Plans

February 9th, 2009
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Obama’s plan may expand on the Federal Deposit Insurance Corp.’s streamlined loan modification program, which serves as a model for workouts being conducted by several banks and by Fannie Mae and Freddie Mac.

The FDIC’s program, which is underway at failed lender IndyMac, calls for making monthly payments more affordable by reducing interest rates, lengthening loan terms or deferring principal. Servicers aim to reduce payments to no more than 31% of a borrower’s monthly income. So far, more than 10,000 delinquent loans have been modified, and offers have been made to another 20,000 borrowers.

Summers has said that banks that receive bailout funds will be required to implement foreclosure prevention programs.

The Obama administration is expected to put some money behind the loan modification efforts. It’s likely any loan modification plan will come with incentives for servicers and with some type of backstop in case the borrower defaults again. FDIC Chairman Sheila Bair unveiled a $24.4 billion plan in November that offered servicers $1,000 and provided a guarantee to cover 50% of any losses in case of redefault. The proposal, which she estimates will help 1.5 million people avoid foreclosure, has gone nowhere so far.

read the full article at cnn

Mortgage