Loan Modification Sites

In prior posts we have discussed some ways the government is providing opportunities to help borrowers who are struggling with their mortgage payment to try and keep their house.  We discussed the HAMP program, which is a government loan modification program that helps qualified consumers make adjustments to their mortgage payments in hopes to be able to keep their house.  The government recognizes that not all of these people will still be able to keep their house, so they have provided a program to help those that do need to give up their home, to do it with some extra money.

The Home Affordable Foreclosure Alternatives (HAFA) program is a government program that helps borrowers who have tried the HAMP program and have failed to be able to get rid of their house, with the possibility of receiving up to $3000 cash.  For borrowers who have qualified for the HAMP program and still fail to make payments, HAFA can help you with a short sale or Died-in-Lieu foreclosure while at the same time sending you off with up to $3000 cash for “moving expenses.”  If you have exhausted all possible ways to modify your loan and are still unable to afford your home, this may be a great option for you.  Learn more about HAFA here.

As the economy grows weaker, consumer loans are becoming more and more scarce.  On Tuesday, Wall Street reported a record setting $21.55 billion in consumer credit loss, which shows that indeed consumers are borrowing less and less.  Much of this is due to the extreme tightening in lending from banks.  As a result, banks are looking even more at loan modification and loan refinance for opportunities for consumers to finance.

Not all loans and businesses have completely gone away.  In fact, credit repair services businesses have been thriving.  As the economy has suffered, bad credit has piled up throughout the entire country.  Not only are millions of Americans looking for new jobs but also looking to improve credit scores.

Loan modification is still a very viable option that is being done all around the country.  If you have not already, it would be wise to consult a professional to see what can be with your loan.

On Monday, Secretary Geithner unveiled the new toxic debt plan, that could result in over $1 trillion in spending to assist in the acquiring of toxic debt.  The plan was announced several weeks ago, but was unveiled in more detail on Monday, causing the stock market to rally 500 points.  The plan involves creating a “bad bank” entity, that would work much like the RTC did back in the 90’s.  Toxic assets will be transferred to this “bad bank” and then the Government will look to partner with private equity groups in disposing of the assets.

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!

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.

For the first time since December of 2008, the DOW closed up four days consecutively.  This rally in the stock market is being led by the financial institutions, as many of them saw their stock go up anywhere from 40-100% in just a week.  This recent return of confidence in lending institutions is good news for your mortgage and loan modification. Both Bank of America and Citi Group announced this week that they are well capitalized and are actually yielding profits in the current quarter.  Both feel that they will not need further government funding to keep them alive, as both have recieved tens of billions of dollars from the government.

On Monday, The FASB (Financial Accounting Standards Board) is planning to meet to discuss a change in strategy to the current accounting procedure “mark to market” that bank uses on their balance sheets.  As of now, banks are required to adjust values of properties to their current appraised value when doing accounting, which recently, has taken an enormous chunk out of their balance sheets.  The FASB will meet to discuss changes that can be made to this procedure that will help bank minize the damage of toxic assets.  As this develops more, this provides a great opportunity for those looking to refinance a mortgage or modify a loan. So whether you are in Texas, California, Florida, New York, or any other US city, you most likely qualify for the new government loan modification and refinance plan. If you are not sure if you qualify, we can find out for you.  Now is the time to act, as interest rates remain record low and banks have incentives to work with you.  CLICK HERE to begin in modifying or refinancing your loand today!

In the past couple of weeks, President Obama and government agencies have been working hard to assist people across the country in working out their mortgage.  Considering the current estimate for delinquent houses is roughly 10% and the FDIC is predicting that 1 out of every 3 houses will be delinquent by 2010, this has become a top priority for President Obama.

Considering many of the financial institutions have suffered severe liquidity problems the last year, the government has given aid to many of them.  From now on, any bank that is to be recieving TARP money will be required to follow the guidelines that the government has laid out for loan modification.  So whether you are in California, Colorado, or Florida, you are most likely eligible for some sort of loan modification or refinance.  Having the Fed rate at a 0% currently and in our current economic state, there is no better time to consult a representative.  Banks have been commissioned to lower interest rates to as low as 2%, if needed, in order to work with those struggling to make mortgage payments.

Even those of you that have remained current on your mortgage have options, including reducing your principal amount.  Get in touch with a representative today.  Click here to get more information on how you can work out 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!

The government is requiring major US banks who are eligible for TARP funds to participate in frequent “stress tests” to show how stale the financial institution is in case of severe economic turmoil The tests will entail many scenarios of which is foreseeable in the near future if the economy continues on the trail it’s on, and show how well the bank will be able to perform in such an environment. Some aspects of the test include a scenario if:

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!

Bank stocks experienced a strong rebound in Tuesday’s trading as the The Fed Chairman Bernanke addressed the nation and assured investors that though the recession would linger longer, banks were going to survive.  In response to the remarks, Bank of America and Citi Bank’s stock shot up over 20%.  This rise in stocks puts an end to the 6 day selling streak the Dow experienced as well as the slaughtering of financials we have seen the past week.

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!