25% Since Its Start Had Received Permanent Relief
Latest report from the Treasury Department adds to the problems in the Obama administration’s $75 billion program. While government electors summed it as a helping hand that could aid in turning around the housing market, others see it as something that prolongs the inevitable surge of foreclosures. The others appear to be right; as evidence shows the number of homeowners abandoning the mortgage assistance program is about equal to those whom have received permanent relief. And abandoners are on the rise. As of last month, over 299,000 homeowners had received permanent loan modifications, Treasury said. That's about 25% of the 1.2 million who started the program since its March 2009 launch. They are paying, on average, $516 less each month. However, the number of those that started the process but failed to get their mortgages permanently modified increased big time in April.
In order for homeowners/borrowers to successfully complete the program, they MUST make at the very minimum three payments on time. A 23% or 277,000 homeowners enrolled, have stop during this trial phase. That's a 79% increase from about 155,000 a month earlier. Many reasons for the failure include borrowers’ inability to complete the process. Treasury department officials recognize that long delays have been a problem. Officials have now directed lenders to shift to a new system. Starting with loan modifications that go into effect June 1, they are required to collect two recent pay stubs at the start of the process. Many borrowers who don't get help will end up losing their homes. That can happen through foreclosure or short sales. Mortgage companies will now have to set their minimum bid before the house is listed for sale. If the offer is above that, the lender must accept it.
But, generally, lenders calculate the money only after they have an offer on hand, which can lead to more delays. The new program is expected to boost short sales this year, but 80 percent of distressed sales this year are still likely to be foreclosures, estimates Celia Chen, senior director of Moody's Economy.com.
While it’s all good about the government’s help and how many millions they spend into this program, one thing I don’t hear them writing about is the end result for those that do not successfully complete the program. Needless to say, homeowners then stand to lose their home to a foreclosure from the lender. Unless an investor such as myself finds out about it and make a CASH OFFER on the homeowner. And even then, I will go over with the homeowner about the past events and perform a Forensic
A Forensic Loan Modification Audit carefully examines the terms of the lender's mortgage contract fo Audit myself in search of PREDATORY LENDING VIOLATIONS, FEDERAL OR STATE LAW (T.I.L.A. or R.E.S.P.A.) VIOLATIONS. I am almost certain the results will provide us with some leverage in negotiating on the table. Best of all is I do this Forensic Audit for FREE! No Cost! Nada! What do you have to lose?
If you will like to learn more about this FREE Forensic
A Forensic Loan Modification Audit carefully examines the terms of the lender's mortgage contract fo Audit, take us on our FREE Consultation Call and we’ll tell you all about Short Sales and how this too COST NOTHING! The phone numbers and email address are at the upper-right corner of your screen.