Is the Federal Government about to spend up to $100 billion for loan modification programs to encourage lenders to modify loans?
It appears that an announcement about the Federal Government supporting loan modifications may be coming as soon as Tuesday of this week.
From this morning’s Washington Post:
Geithner is likely to roll out a plan, worth $50 billion to $100 billion, to encourage the modification of mortgages for homeowners who are otherwise at risk of being foreclosed upon. It could be based loosely on a strategy for foreclosure relief engineered by FDIC Chairman Sheila C. Bair when the FDIC took control of the failed bank IndyMac last year. Extensive details of how the plan will work may not be complete by tomorrow’s speech, however.
“Institutions that get assistance will have to participate in loan modifications and meet other standards that we set,” Geithner told the House Democrats yesterday, the sources said.
Federal Government Loan Modification Programs: Clear Rules?
It appears as if there may soon be a “more clear” set of rules when attempting to get your loan modified - because if the Federal Government steps in and throws $100 billion towards a loan modification program, you could *reasonably* expect there to be a more-clear set of rules than there currently is.
- Are you currently in the process of getting your loan modified by your lender?
- Are you thinking of hiring a loan modification lawyer to help you get your loan modified?
- Are you currently thinking of trying to get a loan modification, but are not late on your payments and wondering what to expect?
- Are you about to be foreclosed on?
Be sure to pay attention to the upcoming announcement about Federal Government involvement / support with loan modifications by Treasury Secretary Timothy Geithner this week.
Last 5 posts in Loan Modification
- Bank Accidentally Sells House as Foreclosure - November 11th, 2009
- Loan modifications are lowering monthly payments - October 4th, 2009
- More Homeowners are Late on Their Mortgages - September 21st, 2009
- Successful Short Sales…I mean plural…more than one! - September 14th, 2009
- FHA Mortgages Now Qualify For Government Help - September 3rd, 2009
- Stumble it!
- Categories: Loan Modification
Comments
9 Comments so far
Florida Loan Modification
Justin,
From working with homeowners in Florida, we have had a lot of people get turned down for loan modifications, because the banks were not willing to deal with homeowners who were not behind on their payments.
CitiMortgage is now being forced to do loan modifications for homeowners who WILL be behind on their mortgage soon.
So legislation like this will hopefully help people who are being proactive instead of just helping stabilize those unfortunate individuals who are already behind on their mortgage.
Justin McHood
@Florida Loan Modification,
Thanks for stopping by and commenting!
You bring up a good point - many lenders won’t actually talk with you about a loan modification unless you are late.
So as you said - “so legislation like this will hopefully help people who are being proactive instead of just helping stabilize these unfortunate individuals who are already behind on their mortgage.”
Dave
Anyone know a good way to break into loan modifications? I worked in commercial real estate for an REI company, but was recently laid off.
No one is hiring in that field and I am trying to get ahead of the curve with my next job. So my though is these loan mods will be huge given the number of foreclosures/people going into foreclosures.
What companies would you recommend I contact for potential job opportunities in this field?
Thanks!
isac
i have l4 months back, and mi property is for short sell on 4 april, what i can do to save mi home
Justin McHood
Isac,
Today it was announced that there is a new plan called “Making Home Affordable” that might help you.
http://www.zillow.com/blog/mortgage/2009/03/04/making-home-affordable-plan-expected-to-help-4-5-million-homeowners-refinance/
The first step is to call your lender and ask them if they are participating in the program and how it can help you.
Good luck!
Justin
CYN
IS YOU INTEREST RATE LOWERED PERMANET?
Justin McHood
@CYN,
It depends.
When you go through the modification process, each situation is different. If you are currently going through the modification process, be sure to ask that question!
Justin
Anatoliy
I’m behind 6 month payment and always contacted to my bank countrywide about my financial situation and they told me a few times as I qulify to loan modification but they don’t want to do nothing, what reason? Why they don’t nothing.
Anatoliy
Anatoliy
I’m behind 6 month payment and always contacted to my bank countrywide about my financial situation and they told me a few times as I qulify to loan modification but they don’t want to do nothing, what reason? Why they don’t nothing.