My clients have told me that it feels like they just got kicked in the stomach. After months of diligently making reduced payments, not only do they get a letter or phone call telling them that their trial modification has been rejected; but, they are also told that they now have an enormous past due balance that has just been reported to the credit bureaus! These people played by the rules, submitted their paperwork and diligently made all their payments. So, why was the trial loan modification rejected? In order to understand why their trial modification failed, homeowners need to understand what a loan modification means to a bank.
Fannie Mae and Freddie Mac, would provide these new loans which has a vast variety of mortgage network from lenders, brokers, loan officers to provide these loans. The program would be capped at $300 billion. This new program would lure many new buyers into buying homes as save money on cost as well. The National Association of Realtors estimates that this program would sparks about half a million home sales.
With more buyers coming into market, it will reduce inventory and it would allow stability in real estate market. More foreclosures are coming and with lower mortgage rates, foreclosures will be vastly reduced, thus allowing home prices to rise again. The Senate began debate on stimulus package on Monday with hopes of reaching a vote by Friday. Republicans want to have mortgage interest rates lowers to 4 percent or 4.5 percent on 30 year fixed rate loans. Rates can eve drop further if Fannie and Freddie will buy these loans and service them. Senate voted to give a tax break of up to $15,000 to homebuyers to help housing market.
You may have successfully brought your credit card debt down to zero but you may end up paying a huge amount as tax along with penalty to the government. This may push you into a financial crisis again. Hence, make use of the right solution to plan your tax properly so that you are completely free of legal complications. If you are not in a position to pay tax today, you should plan your tax so that you can manage the liability without violating any law. There are specific professional organizations that provide advice and assistance in this regard. You cannot go in for a very expensive solution because the debt is only going to push you further into crisis.
The Short Sale Solution. I know you want to keep your house. You wouldn't have applied for the loan modification if you didn't have a sincere interest in trying to remain in your home. Unfortunately, it may not be in the cards. Realistically, your lender isn't going to reduce the balance of your mortgage. With that in mind, even if you are approved for a loan modification, you are going have to agree to pay way too much for your house all over again. Why are you so ready to repeat the same mistake just because you may get more attractive financing? Wouldn't you be much better off selling your home for less than the loan balance, renting for a couple of years and buying something in the same neighborhood at a huge discount? With all of the new programs, including HAFA, designed to assist homeowners in getting their home sold for less than their loan balance, it doesn't make much sense for most homeowners to even attempt a loan modification, much less follow through! Do some research on short sales, find a certified specialist and get that giant mortgage monkey off your back!
Fannie Mae and Freddie Mac, would provide these new loans which has a vast variety of mortgage network from lenders, brokers, loan officers to provide these loans. The program would be capped at $300 billion. This new program would lure many new buyers into buying homes as save money on cost as well. The National Association of Realtors estimates that this program would sparks about half a million home sales.
With more buyers coming into market, it will reduce inventory and it would allow stability in real estate market. More foreclosures are coming and with lower mortgage rates, foreclosures will be vastly reduced, thus allowing home prices to rise again. The Senate began debate on stimulus package on Monday with hopes of reaching a vote by Friday. Republicans want to have mortgage interest rates lowers to 4 percent or 4.5 percent on 30 year fixed rate loans. Rates can eve drop further if Fannie and Freddie will buy these loans and service them. Senate voted to give a tax break of up to $15,000 to homebuyers to help housing market.
You may have successfully brought your credit card debt down to zero but you may end up paying a huge amount as tax along with penalty to the government. This may push you into a financial crisis again. Hence, make use of the right solution to plan your tax properly so that you are completely free of legal complications. If you are not in a position to pay tax today, you should plan your tax so that you can manage the liability without violating any law. There are specific professional organizations that provide advice and assistance in this regard. You cannot go in for a very expensive solution because the debt is only going to push you further into crisis.
The Short Sale Solution. I know you want to keep your house. You wouldn't have applied for the loan modification if you didn't have a sincere interest in trying to remain in your home. Unfortunately, it may not be in the cards. Realistically, your lender isn't going to reduce the balance of your mortgage. With that in mind, even if you are approved for a loan modification, you are going have to agree to pay way too much for your house all over again. Why are you so ready to repeat the same mistake just because you may get more attractive financing? Wouldn't you be much better off selling your home for less than the loan balance, renting for a couple of years and buying something in the same neighborhood at a huge discount? With all of the new programs, including HAFA, designed to assist homeowners in getting their home sold for less than their loan balance, it doesn't make much sense for most homeowners to even attempt a loan modification, much less follow through! Do some research on short sales, find a certified specialist and get that giant mortgage monkey off your back!
No comments:
Post a Comment