In order to make the assets desirable, the government is looking to offer incentives to private equity groups by financing the properties, giving tax incentives, and big discounts on the appraised value.  Bank stocks rallied as the new plan hopes to provide a big boost to their balance sheets.  This is big news for those seeking loan modification or a mortgage refinance.  As toxic assets are reduced and able to be written off of bank’s balance sheets, this makes them more able to work with current loans.  The government is continuing to offer incentives to banks in working with consumers with loan modification or refinance.  Mortgage rates continue to be record low, which has made it a great time to buy or refinance a home.  CLICK HERE TO BEGIN THE PROCESS OF LOAN MODIFICATION!

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.

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!

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!

Unemployment were to rise to 10.3%

Housing prices drop another 22%

Overall economic growth drops to -3.3%

The result of these tests will show how banks will respond to such conditions and, most importantly, what will be the outcome of the bank’s balance sheet.  Hopefully, by doing so, the government will have a better understanding of how much more money banks will really need to get through the tougher times.  It will also help in the transparency of these institutions to hopefully bring back some confidence in the financial sector.

It is important to know of the security of your lending institution and the security of your mortgage.  We are in tumultuous times and by trying to foresee problems that lie ahead can put you in a strong advantage when dealing with your mortgage.  Loan modification could be in your near future and it is in your best interest to know as much about the options you have in front of you with dealing with your loan.  Talk to a loan modification or refinance specialist today!

This confidence boost was sorely needed in the financial sectors as rumors of bank nationalization and bankruptcy began to make their way around investors and analysts.  President Obama and his staff continue to work on their plan to help slow foreclosures and to help consumers in modfiying their loan. We are expecting a more detailed plan to come out the next few weeks, as well as more financial institutions to come a board with Obama’s plan to work with consumers with loan modification. Having the discount rate at 0%, today provides a very unique time to have the opportunity to lock in a loan under 5%.  This is crucial as many analysts believe that following the recession, we could experience rapid inflation, which could possibly send interest rates back into the teens.  Talk to a professional today and begin the process of modifying or refinancing your loan! ]]> http://www.loanmodificationsites.com/banks-stocks-rise/feed/ 0 http://www.loanmodificationsites.com/loan-modification-newsandchanges-to-help-modify-your-loan/ http://www.loanmodificationsites.com/loan-modification-newsandchanges-to-help-modify-your-loan/#comments Tue, 24 Feb 2009 03:57:40 +0000 admin http://www.loanmodificationsites.com/?p=74 The past week, a lot of changes have been made in Washington and it looks like many more are to come in helping consumers to modify their loans. Last week, President Obama announced his initiative to get all commercial banks to work with customers and their mortgages to find a result that is fair to both the lending institution and the consumer.  Considering many of the banks are receiving government aid (or will be shortly), a lot of the banks are already required by the government to work with customers in loan modification.  Also, it is rumored that the recent decision for Citi bank to allow bankruptcy judges to modify loans may spread over to other lending institutions in the near future.

Over the weekend, the possibility of the government taking a large stake in Citi bank was disucussed.  This is a big move for banks as it is one step closer towards nationalization.  The more control government has on lending institutions, the more probably they will be to work with you in your mortgage.  Interest rates are at record lows, so it is a great time to consider to modify or refinance your loan today.  Click here to modify your loan today!

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!

So how can this help you in your problem to modify your loan? By helping to increase the liquidity of banks and help subsidize exisiting loans, this should help the banks become more cooperative in your loan modification. This will also be a big boost for home re-finances as well as the issuance of completely new loans all together. Most likely, the subsidation from the government will come with strings attached to the banks requiring them to be more cooperative in loan modification and other needs for financing. Click here to get your loan modified today!