Home Loan Modifications May Save The Farm

Home Loan Modifications May Save The Farm

By Clint Goodwin

After being in the mortgage industry from 1999-2004, I became very familiar with what was actually going on. I often wondered how we'd get out of the bad loans that were being done by my clients by the thousands. After a great deal of financial pain, it sounds like there may be a solution via the "relatively new" home loan modification product.

Historically banks have been reluctant to cooperate with borrowers on loans they've signed off on. However, current economic conditions, coupled with the latest bailout bill Washington has recently passed, may make this a much more attractive offer to the banks. Let's face it, it's seldom in the bank's best interest to knock off 2 or 3 points on the interest rate, or even thousands of dollars on the principle of a loan. But it now looks as if this may not cost banks anymore than a little paperwork, thanks to the US taxpayer. Suddenly, this has never been a more viable option than it is now for both banks, and borrowers.

Despite the turmoil we keep hearing about the economy and the credit markets, this particular product may be the shining light that saves both parties. Although it seems the government is still hammering out the details, rest assure there will be a frenzy to see who can get in line to get money first. The rumor is that banks are readily taking these home loan modification applications, and prioritizing them based on who's in the worse shape, and making very attractive offers. That's right, the worse loans get to the front of the line, but this is not to say the better loans don't get help. If you can show some kind of hardship, such as lose of income or a medical disability (there's more), what was once signed off as "A" paper, is now on the table for renegotiation.

I've talked to a few of these loan mod outfits. They're seeing banks settle on 3% rates, and even knocking off 40-60% of the principle (on 2nd mortgages especially). Sound too good to be true? There's almost 1 trillion dollars to spend on saving the American farm, and chances are this may be one of the few opportunities left for the American taxpayer to get some of that money back from Uncle Sam in a very substantial way. Remember, a 1% drop in your rate equates to about 450.00 per month on your payment for every 100K you borrow. Get a 3 point adjustment, and you're getting a hefty monthly bailout!

You can count me in. I submitted my application to Safe House Inc.

www.usloanrecovery.com

1-866-843-4669

Safe House, Inc.

2101 El Camino Real, Ste: 101

Oceanside, Ca 92054

My loan is at 6.625%, and have a lose of income claim. They have a simple 3 page form you fill out, and then let you know if you're qualified to get a loan mod. They contacted me and said I was approved. They also have a team of attorneys, and former loan processors who used to be with New Century Mortgage. They can do loan mods for any bank and there's a fee of $2995.00, however, no closing cost. The process is much like a home loan in that you go to the closing table with your attorney to finalize the process. We'll see and I'll keep everyone posted!