"It seemed that every home in our block was up for foreclosure and we didn't think we had any way out. We knew that we owed more on the house than it was worth and were very tempted to just let the foreclosure process play out. Then my husband found out about foreclosure help from 1st Foreclosure Prevention. We contacted them and found that we could get out of the house without having to endure the foreclosure process. This company presented us with options that we didn't even know existed. Not only that, but we're glad we didn't go through the foreclosure process because my husband lost his job, got a new one and the employer did a credit check! This company really helped us out."
"When we found out that our house was worth a lot less than what we paid for it, we were pretty upset. We thought we had made an investment when we purchased our property, but as it turns out, it was a poor investment. We wanted to get out of the house but couldn't even sell it. We thought about just giving it to the bank, but they didn't want it. We had no idea what to do, but then I found out about 1st Foreclosure Prevention. They were able to give us the foreclosure help that we needed and even helped us with the short sale process. We were able to walk away from a bad investment with hardly any damage to our credit thanks to them."
"I couldn't sleep at night because I was so worried about my mortgage and what was going to happen to me and my kids. I had been working two jobs to try to keep up on the mortgage payments since my divorce and there just didn't seem to be an end in sight. Then I lost one of the jobs when the place closed down. A friend of mine told me I was better off to do what I could to stop foreclosure before it started, so I contacted this place that I found online, 1st Foreclosure Prevention, and they gave me so much foreclosure help! I couldn't believe that they could be so nice and caring. They took it all off my shoulders and I was finally able to sleep. They saved my home from foreclosure."
"When we found 1st Foreclosure Prevention, we were about to file bankruptcy. We thought it was the only way to stop the foreclosure process. We were so embarrassed at having to do this and didn't want our kids to even know. But we had to act right away if we wanted to stop foreclosure from happening to us. We had an adjustable rate mortgage that ballooned out of control and I lost my job. We had nothing to lose by getting the free foreclosure consultation from 1st Foreclosure Prevention. We were actually surprised at all of the choices we had to stop foreclosure. Thanks to them, we didn't have to file bankruptcy and are no longer in debt."
"We didn't want to go through the foreclosure process. We were so embarrassed that we were facing a foreclosure and knew that all our neighbors would find out. A couple down the street had a foreclosure and they posted a sign on the property. It was so embarrassing. But we knew that it was coming. My husband lost his job and we were really struggling to make ends meet. We didn't want to lose our home, but felt we had no choice. We were really ashamed of what happened to us. Then we talked to 1st Foreclosure Prevention and they made us feel so much better. They didn't make us feel ashamed and actually gave us the foreclosure help we needed. Thanks to them, we didn't have to go through the foreclosure process that would have pained the entire family."
"I really thought that there was nothing you could do to stop foreclosure once it started. I was wrong. I found out that a borrower has plenty of rights and can get foreclos"
Home / Loan Modification Is Saving Homess
Loan Modification Is Saving Homes
The Homes Affordable Modification Program, also known as Making Home Affordable, seems to be a success. Enrollees continue to increase and many Americans are able to avoid foreclosure altogether.
In addition to the success of the government program, many banks are finding that their own loan-modification services are in high demand as well.
According to the Obama administration, the Home Affordable Modification Program report card over 360,000 Trial Modifications have been started and over 570,000 Trial Plans have been extended to borrowers.
Most loans are covered by the program and up to 45 loan servicers have signed up to offer the Home Affordable Modification Program to millions of Americans, if necessary.
The Treasury has arranged for up to $75 billion to be used in home loan modification efforts. According to estimates, anywhere from 4 to 9 million Americans can benefit from the program, as long as they meet certain requirements. The program works because it provides incentives to loan services and eliminates fees for borrowers while offering reduced interest rates on their mortgages. Combined, these effects could lead to many prevented foreclosures. A borrower could be eligible for a loan modification or a complete refinance.
The government efforts are relatively new – modification and refinance programs have been available through private loan service providers for some time. Many borrowers may not be aware of the government programs in place to help stop foreclosure, despite the fact that growing numbers of Americans are needing help to keep up with their payments.
According to data from the Mortgage Bankers Association (MBA), approximately 1 in 10 homeowners are behind on their mortgage payments – the highest rate since 1972, the earliest date the MBA began recording this data. This rate includes borrowers that have one or more late payments, but excludes borrowers already in foreclosure.
The overall weak economy adds to borrower’s financial difficulties. Many people are losing their jobs – which means payments fall behind. Even news of improvements in the overall economy does not tell the whole picture – if one person’s income falls and someone else rises – that can still mean a lost home.
Private Lenders Fill the Gap
A pitfall of the Making Home Affordable Program is that it seems to treat everyone the same, and the requirements may not include as many people as need help. Furthermore, the only debt that is considered is mortgage debt. Borrowers with other hefty financial obligations may still end up defaulting because their total obligations are too much to handle.
Private banks with their own modification programs are attempting to fill this gap with a variety of ways to help borrowers with their mortgages and other aspects of their cash flow situation. In order to avoid a cookie-cutter approach, many loss mitigation options can be discussed with a lender, in addition to the Make Home Affordable Program. The main point is that borrowers should understand there is plenty of help available to prevent foreclosure.
