"We were really in a jam. I was on disability because of my back and it wasn't enough to cover the mortgage payments. My wife lost her job and got another one, but it didn't pay as good as the first job. Our house was heading for the foreclosure process and fast. But we didn't know what to do. It seemed everything was spinning out of control for us. Luckily, my wife found 1st Foreclosure Prevention online. We filled out the form for the free foreclosure consultation and got a call the next day. We talked it over with them and gave them more information. Then they gave us a case study of our situation that was really detailed. They seemed to really know what they were doing and they did because the stopped foreclosure for us. They got us out of a bad situation - we can never thank them enough."
"I was so stressed out in trying to figure out how I was going to stop foreclosure from happening to me that I actually had to see a doctor for stress. I struggled hard to buy my condo and wanted to keep my home and save my home from foreclosure. But it was getting difficult because the mortgage amount kept going up. I had an adjustable rate mortgage and the rate kept rising. On top of that, I lost my job and got behind in payments. I thought that this was it, I was not going to be able to stop foreclosure. Then I found 1st Foreclosure Prevention. They were able to stop foreclosure from happening to me and allow me to keep my condo. I am now all caught up, have a new job and happier than ever thanks to them."
"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."
"I'm really glad that 1st Foreclosure Prevention was able to help me with my mortgage problems. I was already in the foreclosure process when I called them for a free foreclosure evaluation. They were really nice and explained a lot of things to me that I didn't know, including how to stop foreclosure. I didn't even know that I could do that! They were able to work out a deal with my bank so that I was able to keep my home and pay less on the mortgage. Now I am able to afford my home and even save a little money, thanks to this company. I can't say enough good things about them."
"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 wanted out of my mortgage in the worst way - it was the worst investment that I could make. The roof leaked and there were tons of other issues. But I didn't want to go through the foreclosure process because I knew it would screw up my credit. So when I found out about 1st Foreclosure Prevention, I figured I would give it a try. I was struggling to make payments on a piece of property that I didn't want. I got a free foreclosure consultation from them and they told me different things that I could do to get out of it. They gave me great foreclosure help and even helped me get rid of the property. Now I have a great place and no foreclosure on my record. And working with them was easy, too. Thanks, guys!"
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.
