Loan Modification Sites

Recent news has been talking about the possibility of the Obama administration altering or doing away with the current “mark to market” accounting that is required to be used by banks at the current time.  Mark to market accounting is the act of updating bank’s balance sheets with the present value of their assets, not compared to when it was first purchased, as what is usually done.  Doing away with this, would most likely be a big boost for banks as their balance sheets would hold up in value much greater than they do now.

If this truly does happen, which we should know in a few days, it would mostly likely unfreeze some assets for banks and hopefully better the lending markets for a bit.  This eventually benefits the consumer as banks would be more likely to work with loan modification and restructuring your loan.  Stay tuned at Loan Modification Sites for more updates!

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.