I TOLD you I would always keep my eyes and ears widely observant for potential homeowners getting any kind of mortgage debt balance reduction. I also mentioned that I felt that initially the banks would not reduce loan balances but maybe would ease up towards the later part of the problem.
Well, I finally got one call from a reader that got a second mortgage forgiven by a major bank to the tune of about 70K. Here is the story: she called me about a month ago, telling and literally in tears because she got a notice from the bank that her second mortgage would be completely forgiven. Her property is really upside down and they are retired so on fixed income. But with this second meeting forgiven they would only be worried about their first loan even if there still might be a slight negative, their loan balance is substantially small and they will be able to manage the payments. This homeowner also actually got a loan modification on their own about a year ago, therefore their rates on the first loan is quite low. This all happen with just the homeowner receiving a letter from her lender telling her she no longer owes her second loan, she did not even apply for a loan modification cause she just got one about a year ago. She was puzzled not sure whether this is real or not, so when I talked to her I told her to call the lender and verify the letter.
Sure enough they claim it was real and they would have the second lien settled. I followed up with her almost every week to see how everything was and if she had gotten the “re-conveyance Deed” which will legally show the lien paid off. About the third week, she had gotten a bill from the lender her second lien and she called me immediately worried, I again suggested that she calls her lender to discuss it and the lender assures her that her lien is paid off. I am still waiting though for the Deed to solidify the fact. But so far I am convinced and very happy for this borrower and her husband. It’s almost like winning the lottery.
I have had talk to more people that got their loans modified by their lenders on their own and that is something I have to say is very good news for struggling homeowners. However, still a lot of you are falling for those loan medication scams and still paying different kinds of people and company to help you process the loan mods. Ask yourselves again, why can’t you provide your income information, your paystubs and bank statements to the bank yourself, why can’t you complete a two-three page financial application form yourself? Is that worthier $1,500-3,000+ for you to have to get someone to do it for you? If I don’t discuss stories about these scammers it does not mean I have not been getting calls on them, I really am just failing to convince some of you that it does not work, so I thought not sounding like a broken record (sirang plaka) by keep on preaching it.
I would love to hear from more homeowners getting successful modifications and debt forgiveness.
The Debt Relief Act is still in the works and we probably won’t know when and if it will be approved, so hang tight I will keep you informed.
Now, mortgage delinquencies are dropping and hopefully that is a sign the struggling homeowners are really getting relief or are now able to pay their mortgages?
Transunion, a major US credit reporting agency, reports that fewer US homeowners were more than 60 days past due on mortgage payments last quarter than during any time since 2009.
Between January and March 2012, just 5.78% of homeowners went 60 days late as compared to 6.19% for the same quarter last year. This news, along with signs of stabilizing housing markets and falling unemployment rates, could bode well for the busy summer home buying season.
If you are a buyer now, you sure will realize that it’s a jungle out there because it very difficult to buy a house, because there are so few properties for sale. All the buyers are bidding sometime over bidding on properties. Your offer has to be strong, reliable and convincing, you must have a very experience agent helping you or you can go direct to the listing agent and request for them to offer for you. If have not started working with an agent think about looking online first and maybe if you find something you like, then you can talk to the listing agent to see if its beneficial for you to offer direct thru them. It will sometimes have an effect because they will kind of help you get in the door and they will know what price you should be offering to be inside the seller’s price range, good luck.
Another reason for the mortgage rate defaults is the Positive Economic Signs. US mortgage default rates are expected to fall this year based on the strength of the US economy. For example, the national unemployment rate fell to 8.1% last month and is now down an entire percentage point since August 2011.
The improving economy is helping mortgage default rates in foreclosure-heavy states, too. In the first quarter of 2012 and compared to the three months prior, Arizona, California, Florida and Nevada all made mortgage default rate gains.
-Arizona’s mortgage default rate dropped from 7.5% to 6.9%
-California’s mortgage default rate dropped from 7.1% to 6.7%
-Florida’s mortgage default rate dropped from 14.3% to 13.9%
-Nevada’s mortgage default rate dropped from 12.1% to 11.2%
So long as the economy continues to stay strong, mortgage default rates are expected to improve — especially because an ever-increasing percentage of loans have been underwritten to post-crisis mortgage guidelines. In other words, today’s mortgage borrowers are more heavily vetted by more lenders and, therefore, less likely to default. Let’s hope so.
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Thanks for your inquiries and comments please call Ken Go of 1st Innovative Finance Group at (562) 697-7028 or write your inquiries to [email protected].
