Despite the Government or tax payers providing TARP funds or help to bail the loan workout out, in hopes that the note holders will turn around and help the Mortgage Holders, the foreclosure rate and also the delinquency loan rate has hit an all time high in over four decades. It was the hope of HAMP and other mortage adjustment programs that this would not happen. That credit would be available and help Mortgage Holders find a note modification program and save their home.
The original problem began with the subprime loan that were about to adjust and Mortgage Holders unable to refinance or get a modify my mortgage. This caused the note foreclosure rates to increase significantly. It also didn’t help that at the time the subprime lenders were all going out of business and that Wall Street stopped buying the securities.
Next, the unemployment issue arrived and started to rise and is now at double digits in California with almost 700,000 newly unemployed in 2009. The unemployment issues are now causing those with prime loans to go into foreclosure and need a note modification. More than have of the foreclosures during the second quarter have been from prime loans. Prime loans were thought to be the safest investment and make up the majority of mortgages in this country.
This turn leads the American Mortgage Holders to realize that the foreclosure crisis and inability to make a home loan will continue, if not continue to rise until the employment situation is resolved.
Statistics are show that one in eight, or 13.16 percent, of note were delinquent or in the foreclosure process during the quarter. This is the highest recorded since the survey was conducted back in 1972.
One of the solutions, besides changing the employment situation is to get more Loan Modifications out to homeowners that can’t pay their current mortgage or that are currently in foreclosures. Many homeowners have tried on their own to get a loan adjustment and are denied but don’t stop there as a Mortgage Holders, as calling a Loan Modification Attorney could be your answer.
Most homeowners that try a note adjustment themselves or try to apply for Making Home Affordable or HAMP are denied because they just don’t know how to complete the paperwork. And of the course the servicers aren’t there to help and consult you so that you can get the best deal possible, as it takes money out of their pockets.
The majority of the foreclosures during the second quarter that make up 35% of the foreclosures come from Florida and California. The problems are less severe in states like Virginia and Washington.
The Obama Administration has implemented such programs as Making Home Affordable to help prevent foreclosures and encourage mortgage companies to be proactive and lend to their Homeowners by providing a mortage adjustment. In turn, these banks are paid thru TARP to modifying home note and stop foreclosures. It is thought that the new program has helped about 200,000 homeowners save their home and lower their mortgage payments. We still have a ways to go to reach more Homeowners
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