Comments on: Obama’s loan modification program and 2nd mortgages?

By: George L

George L — Tue, 24 Nov 2009 12:05:59 +0000

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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By: cheeba0228

cheeba0228 — Tue, 24 Nov 2009 11:54:59 +0000

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.
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By: dz

dz — Tue, 24 Nov 2009 11:14:59 +0000

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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By: zeuz

zeuz — Tue, 24 Nov 2009 10:55:59 +0000

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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By: Gaytheist Buddha

Gaytheist Buddha — Tue, 24 Nov 2009 10:33:59 +0000

No help for second mortgages.
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