Is Mortgage Modification Working?

Loan Modifications to save under water home mortgages is uncharted territory and thus too slow to be effective

Loan Modification Process too slow

Loan Modification Process too slow

We’ve all heard, or read about the federal programs designed to stop foreclosures.¬† It now seems that a congressional panel is saying that the more than 500,000 mortgages that have been reduced since spring has fallen far short of what they were looking for.¬† Do these programs really work, how easy is it to get a modification request through?

I have known homeowners who have started the process only to find themselves in the midst of a severe mortgage storm, one that has instilled fear that instead of modifying they may actually lose their home to foreclosure.¬† Once you start the process you have now opened the bee hive and all sorts of things seem to be swarming.¬† If you don’t qualify for the program and it is discovered you are “under water” they may simply call the balance due.¬† This is certainly a situation you don’t want to be in, ever.

I have had my eye on a property for over six months now, more out of curiosity then anything, until last week.  A customer called and wanted information on the property.  I checked and it was not on the county foreclosure list, so I did a little more checking and found the owners name and address, I called them.  It seems that they had fallen on hard times and could no longer make the payments, they ended up walking away. They did try to get the mortgage modified, with no success.  They tried to work with the bank, with no success.  It has been vacant now for more then a year, the AC unit has been stolen and of course things are going down hill because of it being vacant.  What is the bank doing, at this point nothing.

The balance on the home is around $440,000.¬† After doing a market analysis I found the¬† value to be around $180,00, at best.¬† Now, what will happen to this property¬† It more then likely just continue to sit there and fall into disrepair.¬† This home could have been saved if one of the modification programs had worked for the owners.¬† I look at these programs and the number of owners who are falling behind every day and I can’t help but think that 2010 is not going to be any better then 2009, perhaps worse.

Feedburner If you enjoyed this post, please consider leaving a comment below or subscribe to the feed to have future articles delivered to your e-mail and get the latest Amelia Island News, business, tourist activities and videos every morning!

SearchAmelia on TwitterYou can also choose to follow SearchAmelia on Twitter to get your daily updates!

2 Comments

  1. Greg

    There’s so much misinformation out there that people don’t really know what is and is not. It’s refreshing to see people that know what they’re talking about. You have an Informed commentary seems to be a rare commodity these days.Thanks for a great article keep it coming. Loan Modification help center.

  2. Greg

    There’s so much misinformation out there that people don’t really know what is and is not. It’s refreshing to see people that know what they’re talking about. You have an Informed commentary seems to be a rare commodity these days.Thanks for a great article keep it coming. Loan Modification help center.

Leave a Comment