It seems like every other person I meet is applying for a loan modification on their mortgage. The general feeling seems to be, "Why not? It might work."
Making Home Affordable â€“ Web Tools for Troubled Homeowners
It seems like every other person I meet is applying for a loan modification on their mortgage. The general feeling seems to be, "Why not? It might work." Well, check out http://www.makinghomeaffordable.gov/pr_01192010.html. In this article, the government says there are 3-4 million homeowners who may be eligible for the Home Affordable Modification Program. That's millions. And all of 110,000 (that's thousands) have been approved, and of that, 66,000 have been signed. That's for permanent modifications. They also say that 850,000 modifications in excess of $500 (that's hundreds) has been approved. If you live in LA County and you are offered a temporary $500 modification, what will that do for you? Not a whole lot, is my guess.
Because the document submission process can be a challenge for many borrowers, the Administration has created
new resources on www.MakingHomeAffordable.gov to simplify and streamline this step.
New resources include:
â€¢ Links to all of the required documents and an income verification checklist to help borrowers request a
modification in four easy steps;
â€¢ Comprehensive information about how the trial phase works, what borrower responsibilities are to convert
to a permanent modification, and a new instructional video which provides step by step instruction for
â€¢ A toolkit for partner organizations to directly assist their constituents;
â€¢ New web banners and tools for outreach partners to drive more borrowers to the site and Homeowner's
HOPETM Hotline (888-995-HOPE).
â€¢ Homeowners do not have to pay for loan modification services
If you are considering doing a short sale, where you sell your house for less than you owe on it, you pretty much have to attempt a loan modification first. You can go on the website aboveÂ in the privacy of your own living room and see where it takes you. Once that's done and you still feel a short sale is in your future, there are a number of online resources that you should read through (I can help you find them), plus you should consult your tax preparer, accountant, and attorney. After all that, call me back and we'll talk about selling your home.