NEW MORTGAGE LOAN MODIFICATIONS FOR IN-TROUBLE HOME LOANS

By
Services for Real Estate Pros with William S. Cherry & No Co., Wealth Coach

It was the hopes of Congress, Realtors, Mortgage Lenders and recent home borrowers that the program instituted by HUD on October 1 would rescue many of the 400,000 homeowners who are in trouble with their home loan lenders.

Interestingly, though, almost two months later, very few have taken advantage of the plan.  I suspect that's because it is a voluntary program on the lenders' side.

So earlier this week, the Bush administration signed into law a modification of the program with the hopes it would bring thousands under its umbrella.

The modifications will:

  • allow lenders to reduce the mortgage principal to 96.5 percent of a home's current market value instead of the current 90 percent writedown;
  • require HUD to make up-front payments to get second lien holders to relinquish their rights to future payments;
  • allow lenders to extend 30-year loans to 40-year loans; and
  • eliminate the requirement for borrowers to undergo a three-payment trial term before being permanently qualified for a mortgage modification.

 

BILL CHERRY, REALTORS

DALLAS

Our 44th Year Selling America!

214 503-8563

800 314-7110

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Rainmaker
262,481
Bill Roberts
Brooks and Dunphy Real Estate - Oceanside, CA
"Baby Boomer" Retirement Planner

Bill C, I was hoping that Paulson would have used that $700 Billion to buy up those "toxic" assets and rewrite the loans at 50% of the original balance. That would have really helped and it wouldn't have cost anything because the orininal investors already took the hit.

Bill Roberts

Nov 28, 2008 03:00 PM #1
Rainmaker
319,890
BILL CHERRY
William S. Cherry & No Co., Wealth Coach - Dallas, TX
William S. Cherry & No Co., Wealth Coach

Bill, Mr. Paulson is not the right man to be doing any of this.  He's one royal screw up,  You're right about what he should have done and why.

Bill

Nov 28, 2008 04:59 PM #2
Anonymous
max2000

the reason nothing gets done is because the banks dont want to do anything, im in the middle of trying to get a loan mod and im getting no where. My main problem is I pay my bills on time, Yes can you believe that I pay my bills on time, I want to make my 15year loan that im paying 200 in interest a month to a 30 year,,,, i would be paying 800 a month and saving about the same a month,, humm nope cant do it because IM ONTIME????

Jan 05, 2009 07:45 PM #3
Anonymous
Bill Cherry

Max2000==

You don't say where you're located, but consider totally refinancing with another mortgage company rather than trying to modify your existing loan.  You should be able to do that if your payment history, etc., are as you believe they are.

Jan 05, 2009 09:13 PM #4
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Rainmaker
319,890

BILL CHERRY

William S. Cherry & No Co., Wealth Coach
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