Pressemitteilung

When the Obama administration launched its Making Home Affordable plan earlier this year in March, there were some ambitious goals. Slowly, we’re getting there.

The latest numbers released by the Treasury Department show that more than 650,000 of the estimated 3.2 million eligible borrowers have entered into a trial loan modification. That means 20% of the eligible population have taken advantage of the program.

However, the real newsworthy data here is the numbers in reverse. Of all eligible homeowners, 80% still aren’t involved in the program. That’s over 2 million people. In other words, there’s a lot of relief still available for those that need it.

Loan Modifications Help People

Times are tough. Jobs are scarce and homes have lost value. The Making Home Affordable plan gives homeowners an option at a time when it seems like everything is going wrong.

A loan modification could result in a lower interest rate with a lower monthly payment. It may mean having thousands of delinquent dollars brought current and pushed to the back of the loan. It can be the difference between keeping and losing the home. In the most extreme circumstances, it can even mean a principal reduction.

And it’s not just the financial aspect that matters. Stress can be overwhelming when the mortgage is not - or is barely - getting paid. Lower payments don’t just mean an affordable mortgage – they also mean a more relaxed lifestyle.

How Can You Be Next?

The harsh reality is that loan modifications don’t find the homeowner. Banks aren’t hunting people down and offering lower payments. If the other 80% are going to get help, they need to seek it out.

Contact a mortgage modification counselor and find out your options. It’s pretty much always free to have the conversation. A good, qualified firm will discuss your mortgage in great depth and give you a professional opinion on whether or not you qualify.

Your eligibility will depend on a number of factors. Monthly household income, expenses and details about your specific mortgage situation will be important. You'll also need to prove some sort of hardship. It's a good idea to begin getting a handle on this. A professional will be able to make sense of it all and present it in such a way that ensures your qualification.

What Happens if I Do Qualify?

Upon initially qualifying for the program, you're really just getting started. A typical modification process lasts 3-4 months. There will be scrutiny from your lender and enough headaches to leave you buying stock in Tylenol.

It helps to have someone working for you during this time. Obviously, you can do this on your own, but you'll have to decide for yourself if it's worth it.

If the lender does present a modification to you, there will be a 3 month trial period. All you have to do during that time is make the new payments on time and it becomes permanent. Imagine paying 10, 20, 30, maybe even 40% less than what you currently are responsible for every every month.

Contact a loan modification counselor for assistance with avoiding foreclosure.