There have been numerous reports of the dismal failure of the Home Affordable Mortgage Plan (HAMP). These statistics published today are so incredibly frightening as to be obscene.
Out of more than 3 million requests sent to borrowers, only 31,382 loan modifications have been made permanent. Grab your calculator; I’ll wait. Mandelman points out the futility of mailing a mortgage modification invitation to a distressed homeowner; it just winds up in the trash.
The one solution that succeeds currently is the REST Report. When submitted as part of a mortgage modification or short sale application, the results have been spectacular. We don’t track every REST Report, but we know that our customers are thrilled and we have no complaints. None.
Active trial modifications are faring a little better at 22%. (The reader should read my past articles about the foolishness of ‘trial modifications.There is no reason or excuse for them.)
There has been a steady decline in mortgage modifications being offered to troubled homeowners. Foreclosures declined by 8% in November, so it would seem that trials offered have declined. But they’ve declined by 30% from October to November.
Part of the solution is to mail your mortgage modification application certified mail, return receipt requested. Do not fax a single sheet of paper.
These numbers don’t include re-defaults, which are almost certain to occur, even after some of these trials go permanent. This fact receives less attention than it deserves. I talk to several homeowners a week that already have supposed ‘mortgage modifications’ offered by their lender. Typically, these mortgage modifications are at 50% of their new, current monthly income. And maybe they’re adjustable rates.
Thje REST Report qualifies you for a mortgage modification or a short sale. Those are the only two options. Why? Because those are the options that benefit homeowner and mortgage investor. Foreclosure only benefits the mortgage servicer. Do you sense a pattern here?
Get this: these are not beneficial, affordable, efficient mortgage modifications. A true HAMP (or even non-HAMP) modification is 31% of new, current monthly income. And it is a 30 (or more) year fixed interest rate. Of course these non-beneficial, non-affordable, non-professional mortgage modifications are doomed to failure. You don’t suppose the mortgage servicer knew that, do you?
The author also guesses that maybe the mortgage modification was un-affordable to begin with. Then why wouldn’t the mortgage servicer advise the distressed homeowner of that up-front and suggest a short sale? Is it possible the servicer makes more money on a foreclosure than a short sale? An experienced investor has a vested interest in the best interest of the homeowner.
The distressed homeowner can read all the excuses they can stomach. None of them changes anything. The result is clear; If you want an affordable, beneficial mortgage modification, call me and I’ll qualify you for the REST Report. When considering how to pay for your Rest Report, please note that any missed payments are put at the end of your modified mortgage anyway. The minute you mail your application, you are not required to make another mortgage payment until you get a good faith response from your mortgage servicer, and they know it.
Here’s the bottom line: HAMP provides for an affordable, beneficial, mortgage modification for your distressed mortgage. You can believe the banking lobby that there is no hope, or you can use the bank’s software to beat them with their own stick.
The internet being what it is, certain search terms need to be empahasized so that you can find the best information. The REST Report is best classified as loan modification software, or mortgage modification software. It’s claim to fame is that you use it to calculate Net Present Value exactly the way the banks do, using the same software. It is best used as a do it yourself loan modification or do it yourself mortgage modification. For some reason, loan modification 2010 and mortgage relief 2010 are popular search terms.
This YouTube video says it all. Go here: How to Get A Beneficial Mortgage Modification Now Please ‘Like’ the video, will you? That makes it easier for others to find.
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Originally posted 2009-12-12 23:18:49. Republished by Blog Post Promoter
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US Government mortgage modifications plan is 1% successful – http://t.co/DXRn09O