Obama’s loan modification program and 2nd mortgages?

Nov

Obama’s loan modification program and 2nd mortgages?

Archived in the category: 2nd mortgages

We have 2 mortgages. Our first mortgage company will do the new modification, but does our 2nd mortgage company have to? I’m confused how Obama’s new plan covers those of us with second mortgaes who have lost our income. I know we would be able to refinance and put them together under the new plan, but I still don’t think it would save us much, and not as much as getting both of them modified. Any help in understanding this would be great!

dz is clueless. Neither the first or second lender HAVE to do anything. If you refi to put them together you still have to qualify for the new loan. The modification program does NOTHING for 2nd liens.

The Govt plan is a lot of hot air. No lender is required to do anything. Nobody is getting a 2% 30 Fixed loan. Its not happening people. In most cases they are extending the term on the loans. Any reduction in rate is temporary. 5 years at most. If you qualify for a refi your better off refinancing for a low rate that wont expire.

Zeuz is correct its a lot of smoke and mirrors.

Posted by: admin - 5 Comments

5 comments for “Obama’s loan modification program and 2nd mortgages?”

Gaytheist Buddha

No help for second mortgages.
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November 24th, 2009 at 5:33 am

zeuz

Sorry to tell you this, but Obama is an empty shirt. His plan is filled with smoke and mirrors that give people like you false hope.

Very few people will benefit (long-term) from a loan modification. That’s why they are rarely done.
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November 24th, 2009 at 5:55 am

dont listen to zeuz he is talking out his ass, i just modified my mortg and i am saving $400 per month, as for you the only thing you can do is refi they wont modify your second mortg but if you refi you can get a lower rate then what you are paying now.
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November 24th, 2009 at 6:14 am

cheeba0228

dz is clueless. Neither the first or second lender HAVE to do anything. If you refi to put them together you still have to qualify for the new loan. The modification program does NOTHING for 2nd liens.

Zeuz is correct its a lot of smoke and mirrors.
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November 24th, 2009 at 6:54 am

George L

NEW YORK (CNNMoney.com) — Mortgage modifications have a bad rap, yet President Obama is depending on them to stop the foreclosure crisis.

Modifications continue to be pushed as the best way to get struggling borrowers back on their feet. The jury is out on whether modifications work long-term. One recent study showed about half of borrowers with modified loans fell behind within six months.

Still, Obama is giving modifications a central role in his $75 billion foreclosure prevention program.

The program, which starts on Wednesday, calls for loan servicers to lower struggling borrowers’ interest rates so that total payments are no more than 31% of their gross income. The government will subsidize part of the reduction, as well as kick in incentives for the servicers, borrowers and mortgage investors to participate in the modifications.

for more about loan modification you can try here : http://www.iloanshop.com/loan_modification_stop_foreclosure.php

Good Luck…….!
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November 24th, 2009 at 7:05 am

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