Loan Modifications – A Word From A Fellow Mastermind Member

If you are facing a Michigan Foreclosure, one of the ways we are able to help you resolve your situation is by staying on top of changes in laws, policies and the housing industry in general. One way we do this is by being part of a national mastermind group where we get cutting edge information and techniques. Here is what one of our fellow members had to say lately about loan modifications.

“Loan Modifications seem promising until one examines how ineffective they have been. The goal of the Obama Administration was to incentivize banks to do loan mods in the expectation that 3 to 4 million homeowners would receive the assistance they needed to stay in their homes. Thus far, and it’s early, some 55,000 distressed homeowners have been helped. A major block has been the reluctance by the banks to commit to loan modifications out of concern for the downward spiral of housing values.”

“No one can argue that the goal of keeping homeowners in their houses is worthwhile. The trouble is that those that promote them often make up what they lack in foresight with sincerity, which isn’t exactly good for … the homeowner…”

“Here’s the point: Unless banks do something to reduce principle balances well below current (house) value, most loan modifications will keep homeowners trapped in debt with a house that is over-leveraged and therefore one that they will not be able to sell when needed (job issues, divorce, medical, etc). The lost home equity isn’t coming back anytime soon. Guess where many of those homeowners who complete loan mods may end up? Back in Foreclosure.”

Excerpt from The SREC Monthly Mentor Newsletter, Volume 1-3, June 2009

Well said Ted! Give Emily a call and ask her what options we can offer that will provide a permanent solution and help you get back to better times.

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