Consumer guide to loan modifications…

I came across this very interesting article today and I thought some of you might like it too.

The California Association of Realtors CAR published this… please read on 

This week’s C.A.R. Mortgage Update contains information about mortgage modifications; the Federal Reserve’s plan to purchase government-backed IOUs; jumbo loans; mortgage support Web sites; condo rules; mortgage rates; how banks are preparing for President Obama’s housing plans; and increases in mortgage fees.

A consumer’s guide to mortgage modifications
With approximately 81,000 properties in California receiving a foreclosure filing in February, and one in five homeowners underwater nationwide,  many consumers are seeking mortgage modifications, but may not understand how they work.

 

A loan modification is generally a temporary adjustment to a home loan that lowers the monthly payments by reducing the interest rate the borrower pays.  In most cases, borrowers are eligible for loan modifications if they can prove their troubled mortgages can be brought back to good standing with the modification.

 

Consumers interested in learning more about loan modifications should contact a mortgage counselor at an agency certified by the U.S. Dept. of Housing and Urban Development (HUD).  A list of agencies can be found online at www.hud.gov. 

To read the full story, please click here

 

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