According to a report in the Wall Street Journal today, the federal government has sent a letter to mortgage servicers advising them to improve their efforts to modify mortgage loans for struggling homeowners. The intent of the Making Home Affordable program is to help millions of Americans refinance their existing mortgages into more manageable mortgage terms and/or better mortgage rates. To date, approximately 275,000 homeowners have benefited or received modification offers from their banks.
A major component as to why the response from servicers has been so limited is because the lenders believe they can recover more of their lost funds through the foreclosure process rather than modifying a loan.
Seeking expert advice from a licensed mortgage professional is the best possible step a homeowner can take to help their situation. Gilbert Meserole, a seasoned loan officer at Total Mortgage Services recently said, “many borrowers are under the misunderstanding that it is the lender who had the best rate when they purchased their homes. They do not understand that it is the broker’s relationship with the banks, their volume and their performance incentives that put us on top.”
Loading ...
Mortgage Refinancing
July 20, 2009 @ 10:39 pm
Interesting!
The loan modification process can be frustrating and confusing for many distressed homeowners. But you have to know what exactly is loan modification. A loan modification is a permanent change in one or more terms of a borrower’s home loan.
Reply