| Loan Modifications-Who Took My Non-Performing Mortgage? |
| Articles - Mortgage |
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Ok, so the word is out, the doctor is in, and the medicine is... Loan Modifications. Specifically, principal write-downs.
Ok, so the word is out, the doctor is in, and the medicine is... Loan Modifications. Specifically, principal write-downs. Very Interesting. Will Loan Mofications Be The Solution For Negative Equity? The Hope for Homeowners initiative passed by Congress in July and officially launched a month-and-a-half ago to much acclaim, is a potentially positive FHA insurance package aiming to insure $300B of new mortgages for borrowers in a "negative equity" position. Negative equity, meaning that most of these properties are worth less than the balance of the loans. If the home owners have a DTI of 31% or less and made at least 6 payments on time, they can qualify for a Loan Modification. What happens if the borrowers meet all the guidelines? (And keep in my mind, that most of these are non-performing mortgages. And if I had to guess what the debt to income ratio on average in 2007 was, it would most likely be around 40-45%). Loan Modifications - Who Qualifies? The answer is: Very few people. When the program first started, it had 49 applicants. None of them were approved. FHA Secure Program Designed To Help Home Owners, Non Performing Mortgages Included Just as difficult to qualify for, out of 203 applications only 49 borrowers were approved for the FHA Secure program. In that same time in California, approximately 1,300 homes saw a Notice of Default filing. If the H4H program needs more time, can't we just wait? Yes. Just keep in mind that if lenders are going to participate in these 90% principle reduction loan modifications, they will be looking for federal backing. H4H included. Instead of waiting on H4H, why don't you invest in those 49 notes that were rejected and make an offer to buy them. And most likely, there will be more non-performing mortgages (to buy) where they came from. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Want to find out more about the Note Buying Business? Watch Hours of FREE Training Videos here: Loan Modifications Real-life, Up-to-Date Information for You. Visit NoteBuyingProfits.com or Call 718-783-7605 Or Click Here: Non-Performing Mortgages From Dean Engle & NoteBuyingProfits.com - This time on Loan Modifications |