Making Home Affordable Program

The distressed housing market, and the related financial industry meltdown, are real and affecting more and more homeowners every day. Its not unusual to see the names of realtors among the distressed sellers. The U.S. Treasury has created a web site that provides some basic qualification questions for homeowners who have, or may soon have, mortgage problems. The site address is: www.MakingHomeAffordable.gov There is some helpful information on this site:

• Basic questions to see if you qualify for the Federal loan modification programs,
• A way to look up whether your current loan is held by Fannie Mae or Freddie Mac; the two organizations directly impacted by Federal policy,
• Finding a home mortgage counselor
• Resources, including calculators.

My advice is: Don't be afraid to call your mortgage lender and be very persistent. If you need help, CALL ME. I deal with them regularly and can tell you what to expect.

Last week I visited a company that works with homeowners to facilitate loan modifications. It's called New Leaf Modifications in Roseville. They contacted me because of my success with short sale listings. I was shown some of the modified loan documents, and I must say that like so many other things in life, the value depends on your situation. I can see just as many people getting in trouble with these modifications as those who signed up for "pick-a-payment" and low-downpayment loans in years past.

When considering loan modification offers, look past the monthly payment savings to the long-term effects of the other loan terms. If it looks like your lender is giving away money, look harder! Most of the time they are giving you short-term relief, but you still owe all the money!

Your friend and realtor,
J.Scott Carpenter