Times are tough in the IE, right?  We are arguably the center of the housing debacle and appear to be the new center of controversy as loan mods start offering rates as low as 1%.  On top of that, the FHA recently changed loan limits from 350k to over 500k.

What does all this mean?  It means lots of things but one major point brought up on a recent 640KFI radio show with Bill Handel, was that people are buying new, market value homes then walking from their current over-priced model.  Maybe this is a sum-zero but the controversy continues.

Loan modifications can be made available to those who are:

1. 1-3 months behind on mortgage payments with homes that have not yet been foreclosed and have not gone to auction.

2. Not yet behind on payments but know that missing payments is imminent.

Loan modification programs including the Obama “Make Home Affordable” initiative have created controversy among those who desperately need a modification and those who feel they will be paying for these mistakes.

The controversy hit a bit of a fever pitch when Rick Santelli of CNBC called for a “tea party” type revolt on the Chicago trading floor. Rick’s rant can be seen in the video below:

Though many bought homes they could not afford, others who have paid their mortgage and worked hard have seen the values of their homes fall off a cliff. These same people are now losing jobs due to the deepening recession (caused by the housing crisis), and are now defaulting on their loans. It is these people that are most likely to receive a loan modification.

Generally speaking, loan mods are easier to get now than a refi. Traditionally, it would be the other way around but that was when banks were far stronger and credit markets weren’t so tight. These markets have loosened up quite a bit but the restrictions still run high for refis, which pushes most people out from eligibility.

Qualifying for a loan modification is easier now than it was just a few months ago. In fact, those who do qualify can look forward to the possibility of ridiculously low interest rates, as low as 1%. It’s also possible to have second mortgages wiped out completely or firsts reduced to market value.

Obviously, the controversy will continue as those who can, and do pay their mortgages wonder why they’re not getting help. Not surprisingly, some analysts are calling for complete rewrites of every single mortgage in the country to bring them all to market value. We don’t know where this recession is going, how deep it will be or when it will end but apparently, no solution is off the table.

To find out if you qualify for a loan modification, fill out the short form below and a specialist will contact you.

Helpful Links:

American Recovery and Reinvestment Act

The Federal Housing Administration

The market and incentives are changing rapidly.  Keeping checking back for rates, government programs and tax rebates.

Information is changing quickly.  We’ll have additional loan modification information within the next 48 hours.  This information will be for the state of California.

February 28, 2009
Economic News and Information that Affects You

If you’ve been following the loan modification roller coaster for the past year, you know of the tremendous ups and downs in the programs.

The lows included home owners being hung up on, paperwork overloads, bogus loan modification scams and sudden foreclosures after a presumed modification.  Does it hit home?  Absolutely, in fact, 3 homes in my culdesac all attempted loan modifications only to fall to foreclosure.  Our mail carrier even told me yesterday that he had 2 weeks to vacate a home he had owned for 25 years.  He said he had an approved loan modification that the bank basically ignored and foreclosed anyway.  Everyone has been affected either directly or indirectly.

The highs for loan mod programs are fairly new and are a result of some positive market forces but also the recently passed stimulus package.

Market forces have driven mortgage rates down to historical lows, currently ranging from 4.5%-6% depending on a variety of factors.  The FHA is constantly adjusting their loan limits on a per-county basis. Recently, many of these limits have come up, allowing buyers to apply for more expensive homes.  To check on your particular county, visit the FHA website for the most up-to-date limit information.

Another important high is that funds for refinancing have also become more available along with funds for loan modifications.  Some of this is a result of the stimulus package that just passed.  It allows for some homeowners that are under water to refinance.  This means they owe more on the home than the market says it’s worth.

For information on modifying your existing loan call (888) 233-3213 or fill out the short form on this page.

Rancho Cucamonga and the Inland Empire have been identified as the root cause of the current housing disaster.  Rapid growth, easy loans and a desire to live outside Los Angeles caused thousands of local homes to be repossessed.

If you’ve tried to refinance or to gain a loan modification and failed, read on, help is available…

The new loan modification programs are due to help tired homeowners finally get the help they need to refinance or obtain loan modifications.

The Obama Mo Mod program is actually a computer program designed to modify Fannie Mae and Freddie Mac loans in the thousands per month.  Little is known about this program but it is intended to expedite the loan modification process.  The Mo Mod program was part of the recent stimulus package that was passed by Congress.

Before the recent incentives and help programs arrived, homeowners were left on the phone waiting for hours with their banks and government agencies that were supposed to help.  The paperwork was endless, faxes were often lost and hang-ups became the norm.  This type of environment exacurbated the situation for homeowners that were in dire need of immediate assistance.

How To Qualify for a Loan Modification or Loan Refinance

If your home has already been lost to foreclosure or it has gone to auction, refinancing and a loan modification will not be available.  If you are currently making your mortgage payment but know that missing payments in the future is imminent, or you’ve already missed 1-2 payments, you could be a good candidate for a loan modification or loan refinance.

The restrictions have loosened somewhat.  Formerly, only homeowners with 20% remaining equity could consider a refinance.  Most people who still have this type of equity aren’t in trouble and don’t need to refinance nor do they need a loan modification.  Today homeowners can be under water on their mortgage and still have opportunities available to them.

Interest rates have also dropped to historic lows ranging from 4.5-6% depending on the points paid up front and a variety of other factors.

To find out more about obtaining a loan modification or to refinance your mortgage call (888) 233-3213 or fill out the short form on this page.