Is Help Really On The Way

admin — Fri, 20 Mar 2009 22:33:08 +0000

The Home Owner Affordability and Stability Plan has arrived and as usual the “devil is in the details”. Borrowers are jamming the lines at the mortgage servicers trying to get loan modifications and refinances using the governments newly published guidelines. The process is long and arduous. Homeowners should expect upwards of 3 months to get their modification complete. One little catch, your lender (not servicer) might not participate in the program and therefore you may not be eligible for help. In the last two weeks I have had three clients that were trying to get loan modifications through IndyMac (federal bank) and none were eligible. Ironically IndyMac is a federal bank. You would think a federal bank would be able to institute the government plan to help their borrowers.

If you think you need help, fill out our contact page and we will check your eligibility for free. The Helping Hand Foundation is here to help borrowers in need. We will explain the process and advise you the best way to go about applying for a loan modification or other help on your mortgage.

Beware of companies offering to sell you the forms, or software to prepare a package for the loan modification. Most of the work can be done via phone, internet, and using the lenders forms on their website for free. You only need help if you don’t understand the forms and how to fill them out. Most borrowers will find that they are unable to get through the process without some help because of the amount of time and effort it takes. It is essential that the information provided to the lender is accurate, and the supporting documents are in order so the lender can determine if you are eligible.

Finally, be diligent in your follow up and stay in contact with the lender until your modification is complete. Otherwise, your loan modification might slip through the cracks. Contact the Helping Hand Foundation if you need further assistance.

The Federal Government Picks Winners and Losers

admin — Thu, 19 Feb 2009 15:58:11 +0000

Apparently the government has decided to choose the “winners” and the “losers” in the American economy. Nothing new about that, except they are doing it in the spotlight this time. For the past several months the “winners” have lined up at the Federal Corporate Welfare line they call TARP, while the “losers” continue to go to work and pay their bills on time. While this unfolds, we see government intervention wreaking more havoc in the markets daily. What started as a plan to shore up financial markets has grown to a cheese line for Corporate America. Secretary Paulson’s efforts have provided insiders access to our hard-earned money to squander or hoard, further deterioriating the credit markets.

Meanwhile, another government sponsored initiative “Hope For Homeowners”, reports that 58% of those homeowners helped with loan modifications have defaulted within 8 months of modification. I guess a 42% success rate is something to brag about if your business model defies logic. Is there any wonder the banks tried to resist government pressure to modify contracts? It is becoming apparent that most of the homeowners in need of a modification will not be able to perform on the new agreement. The sad fact is you must sell your home if you cannot pay the mortgage.