New Developements In Loan Modification News
Since the real estate crisis began, the federal government has been trying to assist borrowers as much as possible
. Different mortgage programs were created to help those in need, whether they were about to fall into foreclosure or they had lost a great deal of equity in their homes. Some banks, such as Citi, have gone so far as to create programs that offer an abnormal type of assistance. For homeowners, these programs could give them the assistance they need to get back on their feet, depending upon how long the program is in effect.
The Citi program will last only 30 days and while it is estimated to help about 4,000 borrowers during the holiday season, it's unfortunately more of a public relations program than a serious effort to help homeowners. Having a 30 day reprieve from paying the mortgage might help someone who can afford their mortgage, but for someone who can no longer make their payments, it might as well be 300 days. For those who are not able to pay their mortgage, it makes more sense to contact a loan modification company than to rely on banks or government programs. These programs either take months and months to executive, or offer short term assistance, such as the Citi program. For people who are three, four or five months behind on their mortgage, what they need more than a 30 day reprieve is a lower monthly mortgage payment. A qualified loan modification company can offer that type of assistance.
If you are a homeowner looking for some serious assistance to avoid foreclosure, here are some reasons relying on banks will get you nowhere:
Citi projects that this most recent program will help 4,000 homeowners avoid foreclosure proceedings for 30 days. However, there are literally millions of homeowners facing a serious foreclosure crisis right now.
Having 30 days of reprieve merely postpones the headache, it offers no actual solution to the foreclosure problem. While homeowners might have 30 days to rest, the program will not eliminate late fees that will accrue for late payments over those 30 days.
Citi has enrolled almost 100,000 in the federal loan modification program, but only 270 of those homeowners have received permanent assistance.
For serious, long term assistance with foreclosure problems, a loan modification company could be the right solution for some homeowners. Such a company can help negotiate with the banks to offer a long term solution, such as lowering monthly payments by lowering interest rates. The federal program has not shown any real results, and banks can be difficult to deal with because of their size and bureaucracy. A company with experience can do the negotiating for the homeowner, as well as help them prepare the complex application that so many banks and federal programs require. Getting expert advice is important, especially when it comes to keeping your home; in this instance, an expert on mortgage important, especially when it comes to keeping your home; in this instance, an expert on mortgages could be just want homeowners need.
by: J Chase
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