Expert Foreclosure Help

Foreclosure Solutions – Is it Possible the Loan Modification Process to Stop Foreclosure?

Many homeowners in foreclosure were encouraged by the announcement of the Home Affordable Modification Program. A new hope emerged. The sad truth was that the optimistic anticipation was short lived. The government program imposed no rules for compliance. There were no clear guidelines to be followed by the lenders. Even the participation of the lenders was on a voluntary basis. This program is going to be the next failure. Instead of solving problems, the government is funding them. I would like a program like “No homeowner left behind!” But the president does not share this sentiment. The result is that the big lenders received billions of dollars without any accountability. They were supposed to “help” the homeowners, but nobody knows what exactly “help” means under the Home Affordable Modification Program.

The homeowners have to overcome the biggest obstacle – the unresponsive mortgage lender. The loss mitigation department is not equipped and properly staffed to handle the increasing number of homeowners applying for modification. The miscommunication between different departments continues to cause chaos. Many packages, containing personal information, are lost in the huge stream of not properly regulated communication channels.

While applying for loan modification, the homeowners have to work on postponing the foreclosure process. It can be either a forbearance agreement or a short sale. Another new tactic to fight foreclosure, especially in the judicial states, is to challenge the lenders to produce the original note.

My idea about the “new mortgage solution” would look like that:

1. Any borrower to automatically qualify for a loan modification, that comes on a form of a thirty-year fixed rate loan (interest rate lower than 5%).

2. All borrowers that were tricked into an ARM (adjustable rate mortgage) to automatically qualify for thirty year fixed rate loan (interest rate lower than 5%).

3. If a homeowner is in financial hardship, but still current on the payments, he is entitled to get attention and assistance to not fall behind (the current answer is that if you are not behind you cannot get help).

4. If a homeowner have lost a job or have had a pay rate reduction, he must receive a forbearance agreement for six months (free of mortgage payments). This will help reorganize the household finances and get back on track.

5. If a homeowner is in a process of applying or receiving a loan modification, the foreclosure process has to be put on hold. The harassing collection calls have to stop.

As of now, the loan modification process cannot stop foreclosure. The homeowners have to come up with alternative solutions while waiting on the approval.

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From Margarita Slavkov – the foreclosure expert http://www.ForeclosureAid101.com