Loan Modification Centralia, Chehalis, Tenino, Washington
Homeowners in Washington have seen housing values in areas around Centralia, Chehalis, and Tenino, WA plummeting, in addition to escalating unemployment, rising interest rates, and mushrooming foreclosures. According to recent reports, half of American mortgages will be “underwater” in 2011; the borrowers now owing more than their houses are worth.
The Obama administration has been putting greater pressure on lenders and their mortgage servicers, who act as bill collectors on behalf of investors who own mortgage bonds. On Aug. 4 the Feds unveiled the first of their monthly "name and shame" exercises, which publishes data on the loan modification efforts of about three dozen companies. Contrary to what many may believe, it costs the lenders more for a foreclosure than to modify the loan, and coincidentally lenders are more willing to modify the loan in order to prevent foreclosure.
Under Obama’s “Making Home Affordable” plan, the majority of Washington homeowners now qualify for hundreds of dollars in monthly savings with a loan modification. Under the HAMP program, a homeowner’s mortgage payment cannot exceed 31% of their gross income. Since most home loans exceed 31%, the vast majority of borrowers are technically eligible for HAMP assistance.
Homeowners can immediately determine what your current mortgage debt-to-income is and how much your monthly payment may be reduced if you qualify for Obama's Loan Modification Program.
Loan Modification:
- Lowers the homeowner's monthly payments;
- Lowers the loan's interest rate;
- Swaps a rising adjustable rate for an affordable fixed rate;
- Reduces the principle balance of the property;
- Corrects payment delinquencies and defaults;
- Adjusts the length of the loan terms
Eligible Centralia, Chehalis, and Tenino, WA homeowners now enduring financial hardships such as credit card debts, loss in income, unemployment, a bad mortgage, or other financial circumstances, can get approved for a 4% mortgage refinancing and modification plan under President Obama’s “Making Home Affordable” plan. Even borrowers who have been denied a refinancing or home loan modification in the past have been having success with Obama’s mortgage refinance bailout plan.
According to the Department of Treasury, “Anyone with high combined mortgage debt compared to income or who is 'underwater' may be eligible for a loan modification. This initiative will also include borrowers who show other indications of being at risk of default. Eligibility for the program will sunset at the end of three years.”
Loan Modification permanently changes one or more of the terms of your loan which can lower your payments to make them affordable, correct defaults, and offer a fresh start. By modifying the loan, borrower can meet the terms of the new loan, and continue to do so into the future. Mortgage mediation allows homeowners to stop the foreclosure of their family's home, while lowering the monthly payments and modifying the loan terms.
Those homeowners choosing to modify their loan on there own face even greater challenges. Lost in a flood of modification requests, borrowers often wait weeks or months by their phone in hopes of an update on their situation. As has been reported in recent news headlines, lenders are not doing all that they can to help homeowners modify their mortgages, and the vast majority of modification requests have been denied. A large majority of borrowers were also encouraged, directly or indirectly, by their lenders to fall behind on their mortgage payments in order to qualify for modifications that never came. More than half of the clients who walk through servicers doors have been turned down when they tried to secure a loan modification on their own.
Centralia, Chehalis, and Tenino, Washington homeowners will be able to save millions by getting a home loan modification or mortgage refinance using President Obama’s “Making Home Affordable” plan. All homeowners now facing foreclosure, or about to be, should immediately begin exploring all the options available, including new government programs designed to help you get a successful loan modification and save your home.
