Loan Modification Sites

Big news was released earlier this week as once again the government has executed a plan to help reduce mortgage rates as well as people seeking loan modification. On Wednesday, The Fed met for their monthly FOMC meeting to discuss economic conditions and the future of the discount rate.  The Fed announced that they will indeed be keeping the current discount rate at a range of 0-.25%, which was expected, but they continued to announce their new plan, which resulted in a huge upswing in trading, especially for banks.

The Fed plans to spend an additional $750 billion in purchasing mortgage backed securities from housing agencies such as Fannie Mae and Freddie Mac.  In addition to that, The Fed will also be spending $300 billion on the purchasing of US Government bonds.

The announcement on Wednesday sent stocks flying and Treasury interest rates crashing.  In turn, the lowering of Treasury rates should lead to a significant reduction in mortgage rates.  This is great news for anyone seeking to modify their loan or refinance their mortgage. Rates are being quoted in the 4% range, which has not been seen in years.  Due to increasing inflation concerns, these rates will most likely not stay long.  If you have interest in loan modification or refinance, start now and CLICK HERE TO BEGIN THE LOAN MODIFICATION OR REFINANCE PROCESS.

On Wednesday, March 18th, The Federal Reserve will meet for their FOMC meeting to discuss updates with the economy, the discount rate, and other economic variables.  It is expected that The Fed will leave the discount rate at its current level, which is a range between 0-.25%.  This means that, most likely, interest rates for homes will remain low, especially those that have good credit.

With the recent news of bank’s balance sheets shrinking  17%, The Fed has taken initiative to help inject liquidity into the credit markets.  The Fed is considering a bailout structure in the amount of $600 billion, which would involve buying up bonds that are issued by US housing agencies, such as Fannie Mae and Freddie Mac.  Other measures which are being discussed, are the possibilities of buying up US Treasuries and Corporate bonds to help bring stability to the equity markets.  With the addition of these measures, the plan could amount to over a trillion dollars.

The Federal Reserve plans to make an announcement on Wednesday at 2:15pm Eastern to discuss the results of their meeting.  Indeed such an announcement could have a huge impact on loan modification and mortgage refinance.  With more help coming to housing agencies, it creates more incentive for lending institutions to work with your loan.  We are still in the best of times to discuss ways to modify your loan, as banks are working more and more with their customers.  Start now and CLICK HERE TO BEGIN THE PROCESS OF MODIFYING YOUR LOAN!

On Wednesday, President Obama unveiled the mortgage relief program the government will be issuing, to help slow the massive trend of home foreclosures and help consumers in modifying their loan.  On Wednesday, the Obama administration launched the $75 billion plan, which now includes the ability to help those who are behind on their payments and close to foreclosure to participate in loan modification.  The new plan aims to reduce principal payments as well as interest rates for those who qualify for the mortgage help.

The government is offering cash incentives to financial institutions who participate in the program, which will only modify loans that are single dwelling mortgages up to $729,750 that originated before January 1, 2009.  If you have stayed current on your loan, you may be eligible for up to $5,000 dollar of principal reduction, which could greatly affect your monthly payment.  Also, those struggling could see their interest rate moved to as lows as 2%, depending on the unique condition of the loan and the consumer.  The goal is to help both those who have remained current on the loan, as well as though who have fallen behind in payments.  

This is a very big step in the loan modification process and in helping consumers to refinance or modify their loan.  If you have not looked into what options can be done with your current mortgage, contact a representative today to find out what can be done with your loan.  We will continue to keep the most up to date news dealing with all mortgage and loan modification on the site as soon as it becomes available.  Click Here to begin the process of getting your loan modified today!

On Wednesday, President Obama announced his new plan to spend up to $275 billion on a plan to help fight the disease of foreclosures, which has been spreading in every market of the US.  It is estimated that by 2012, over 8.1 million homes, or 16% of all houses with mortgages, could be in foreclosure.  You can see why this has been on Obama’s agenda from the very beginning.  A failure to come to the rescue could be catastrophic for the US markets for years to come.

In the speech today, Obama says he plans to put into action his plan which will only help people who were responsible in purchasing a house and who did not take advantage of the system when buying their house.  Having Freddie Mac and Fannie Mae currently controlled by the government, he said effective immediately, if your house is secured by Freddie or Fannie, you are eligible to apply for a loan modification.  He also said that he encourages all other financial institutions to work with consumers to restructure their loans.  He said any institution planning to use government funds will be required to participate in loan modification for qualified consumers.

He also created a $2 billion initiative for neighborhood campaigns to help work together to slow the foreclosure process.  This is big news for anyone owning a home as banks continue to receive more incentives from the government to work with customers and their mortgages.  Click here to modify your loan today!

In January, Citi Bank agreed with lawmakers to give authority to bankruptcy judges to alter existing mortgages.  After the agreement was made, much interest was shown on behalf of other lenders who also supported the measure.  Borrowers are required to have attempted to work with their lender before hand in attempts to modify their loans, before pursuing bankruptcy.  In the event of bankruptcy, judges have the authority to alter mortgages at will to help fit what will work best for the borrower.

This is a big move in the loan modification sector as it is another measure that the government has passed to assist consumers in keeping their house and being able to afford a reasonable mortgage payment.  It is unclear whether or not this will be accepted by other major lending institutions.

This news is critical for those seeking loan modification.  As more news develops we will be sure to keep you informed here at loan modification sites.