HOME LOAN MODS UPDATE-RESULTS MIXED
HOME LOANS, SHASTA COUNTY, SHORT SALES, TIPS FOR SELLERS
November 13th, 2008
The push for homeowners in financial trouble to seek loan modifications has had mixed results. A recent 
study by Alan M. White of a sampling of subprime loan modifications indicates that less than half the loans saw a reduction in mortgage payments and writing down (forgiving) a portion of the loan balance was rare. In many cases, the arrearages (amounts past due) were merely added to the loan balance, resulting in a higher payment. The pace of foreclosures has far exceeded the number of loans modified.
Homeowners in trouble have several choices:
- Call HOPE NOW @ 888-995-HOPE. or visit www.yourhome.ca.gov
- Seek help from a HUD-approved counselor
- Handle the matter yourself by contacting your lender and asking for the “workout department” aka “loss mitigation department”
- Ignore the problem and let the home go to auction
Remember, it is against the law for companies that offer to assist homeowners prevent foreclosure to collect any fee until the services have been completed as promised. If you are asked to stop making payments, not to communicate with the lender or transfer the title without the lender’s permission, you are dealing with a con artist. Stop talking to them, call the police and contact the number provided above for legitimate help.
530-224-6767 or 530-941-7492
BRAD GARBUTT
REALTOR/BROKER ASSOCIATE
REAL ESTATE PROFESSIONALS GMAC
QUARTER CENTURY LOCAL REAL ESTATE EXPERIENCE
