Greenline Loans Loan Modifications Are Getting Tougher
The latest statistics released from the US Treasury reveal that the Making Home Affordable loan modification program is really a complete disappointment. Over 1.5 million trial mods have been initiated since the plan began in 2009 and only 1% of these have gone permanent. This is great for the 1% of people that the program helped, but what about the other 99%? Unfortunately, these people, they're up against the very serious possibility of losing their house to foreclosure or needing to short sale. I have a disturbing example of a greenline loans long term payday installment loans easy payday loans mod gone drastically wrong that I need to reveal to you.
I had been helping an older man with a mortgage greenline loans native american cash loans modification on his property in Van Nuys, CA. Freddie Mac was in fact the investor and the mortgage loan servicer had been Bank of America. We struggled to get him a loan mod in excess of eight months. For the duration of that period, we had been given the run around by Bank of America and also told that the review was basically pending. In the meantime, Bank of America carried on with the home foreclosure course of action and an auction time was put on the property. Bank of America delayed this sale time on one occasion as a result of pending review of the mortgage loan mod. The mod was still under evaluation when the subsequent auction time came up on the house. However, this time around, Bank of America was not able to postpone the auction date because it's Freddie Mac's strategy never to delay a sale date more than one time. Regrettably, this gentleman lost his residence to home foreclosure and was evicted.
This kind of scenario isn't unheard of within these hard financial times. Consequently lots of families have been removed from their residences. Typically, a lot of these people are coping with health problems together with decline of income. The above instance is unsettling on a handful of levels. First of all, Bank of America really should have processed the modification much quicker. In the event that that they had done this, the house could not have dropped into real estate foreclosure. Secondly, Freddie Mac needn't possess this sort of dangerous policy when it comes to putting off the auction date. Essentially, this home-owner was punished merely because Bank of America didn't process his home greenline loans indian tribal installment loans modification quickly enough.
Bank of America's failure to review the modification along with Freddie Mac's disinclination to postpone the auction date are simply two samples of everything that is wrong with the Making Home Affordable program. At the same time, Bank of America never informed the homeowner that he could also short sale his property and move on with some dignity, rather than being kicked out by Bank of America. Had this particular home-owner decided to sale short his home, he could have stopped the foreclosure, experienced a smaller amount damage to his credit and possibly gotten $3,000 back from the lender under the H.A.F.A. program.
Clearly, mortgage loan mods don't seem to be the most popular strategy lenders are choosing to assist troubled property owners. Other than property foreclosure, the only 2 possibilities remaining to borrowers are short sale or deed-in-lieu. A real estate short sale is the ideal approach to take as it releases the homeowner of the liability in relation to all mortgage liens against the property and also the homeowner can be qualified to purchase another home within 24 months. A deed-in-lieu is when the property owner fundamentally deeds the house back to the mortgage bank, nevertheless this really is much more harmful to credit score plus the credit bureaus treat it just like a home foreclosure.