Another Sub-Prime Mortgage Crisis
With the Sub-Prime Mortgage Crisis in full swing, we are about to get hit with another crisis. By 2010, millions of ALT-A, Option ARMS and Interest-Only mortgages will be re-casting to a higher rate. Many homeowners weren’t and still aren’t prepared for this new crisis. They were expecting to re-finance to keep their payments affordable. With home values going into the basement, there simply isn’t enough equity to re-finance. Many people won’t be able to afford the new higher mortgage payments and are in the bulls eye to lose their home by no fault of their own.
What if I have one of these loans and don’t want to lose my home?
If you’re one of the people who is going to lose your home, you’ll have step up to the plate and start taking responsibility for your financial life.
- You can try to sell your home, but with lower values that may not be a possibility.
- You can try a “short sale”, whereby the bank buys the house at the new lower value. But that may or may not work and you still have to move.
- One way to help yourself is by doing a “Loan Modification”. That’s a process whereby your Lender may:
- Lower your interest rate
- Extend the length of the loan
- Reduce principle owed
- Or any combination of the three
In fact, a Mortgage Loan Modification may be the best way to keep your home and preserve your credit.
How can I get a Lender to give me a Mortgage Loan Modification?
There are several ways you can get a Loan Modification. You can:
- Do it yourself
- The problem is that most lenders, if you actually get to the right department, won’t give you the option that’s best for you
- Ask the Government to help you
- With this option, you may get the modification, but the government gets part or all of any equity in your home for many years.
- Call a Mortgage Loan Modification professional
- A lot of people are doing “Loan Mods” out of their basement. You need an attorney to help you do it the right way. Many states have laws against loan mods not done by an attorney.
The bottom line
Don’t wait – take responsibility, do something now – the sooner the better.
Here’s a good program to look at. They use attorneys to negotiate with the Lender and have a track record of 90-95% success ratio. Full money back guarantee if they’re unsuccessful. In addition, they use the Money Merge Account system by United First Financial, to keep you on track to not only keep your home, but to pay it off is as little as 1/3 to 1/2 the time of your new mortgage! Check it out - Mortgage Loan Modification
George
