The rules for mortgage modification have been eased according to FHFA. They would lower the interest rate to 1/2 % below going interest rates. (big deal) but would not include cn. Worse yet, missed payments would be added to the back end of the loan. Sounds like negative amortization to me.
When talking to sellers who are in trouble, the topic of loan modification will always come up. You need to have some basic information to give to them.
First of all, there are very tight qualifications for this process and it ain’t easy. If you make too much, you are turned down. If you make too little, you are turned down. You have to learn all the ins and outs so you can help the homeowner face reality if they don’t fit.
The deal gives 5 major services-NOT NECESSARILY THE BANKS, incentives to write down the loans of severely upside down homeowners. Most of these loans are not owned by the banks …Continue reading
More double dealing by the govt. On one hand it looks like the govt is giving the banks incentive to help homeowners by giving the banks credit for every dollar they use in the new …Continue reading