on Dec 18th, 2007Bush Paulson Freeze: Adjustable Loan Modifications are a flop
Yesterday I got a phone call from a gentleman who asked me if he thinks the Bush Paulson Freeze will help him get his lender to say “yes” to lowering his payments.
I am the developer of the Mortgage Relief Formula home study course so I get a lot of calls and hundreds of emails. And I am always grateful that people flatter me by asking my opinion.
I explained to him that the freeze has nothing to do with anything. He can call his home loan lender and ask them to lower his payments or freeze his adjustable loan. But in fact, I said, the freeze publicity makes it harder because the lenders are buried with phone calls and the publicity doesn’t mean it is any easier dealing with the home loan company.
My advice is to communicate with your lenders. Ask them to lower your mortgage payment without getting a new loan. Or try to sell your home quickly in nine days even when there are no buyers and get your mortgage lender to agree to a short sale. Get short sale help and get your mortgage short sale questions answered.
Now, an excellent Reuters article bears out the fact that the US government isn’t going to help you. The FHA Secure program was announced with great fanfare as the way to save people facing adjustable mortgage interest rate hikes they couldn’t afford. Well, seems it has only helped a few hundred people.
WASHINGTON, Dec 17 (Reuters) - A program unveiled by U.S. President George W. Bush in August that is trying to save tens of thousands of homeowners from foreclosure has aided just 266 borrowers so far, according to government data released on Monday.
The initiative, which helps high-risk or low-income borrowers win better loan terms by insuring mortgage payments, targets recent homeowners whose loans have a built-in interest-rate spike that made them miss a payment.
More than 1.8 million borrowers could face mortgage rate spikes by the end of next year, according to the Federal Reserve Board, with the mortgage costs rising $350 a month.
If this government-guaranteed loan program isn’t working…how is the so-called Bush Paulson Freeze going to help?
It won’t. But you can help yourself. First join my quality email list so you get instant access to the acclaimed 25 page book Keep Your Home avoid foreclosure and learn how you can get credit card debt relief without filing bankruptcy, and get your mortgage company to either lower your payments or let you do a deed in lieu of foreclosure or let you sell your house even if you owe more than it’s worth.
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I’m in the process of modifying my first mortgage with Chase. Should I also modify my second mortgage? My second mortgage with HSBC is $681.00 a month it is a fixed mortgage. The first mortgage is with Chase it is slowly drowning us. We started the modification application with Chase back in September and we’re still waiting for an answer. The first mortgage was at $1484.00 a month up until August 2007 now it is $2700.00 and is schedule to increase again in Feb 2008. We are so stressing out and short on money that I’m this close to giving the house back. I had one late with HSBC and found myself in a situation where I could not refinance because of the one late on my credit. We have a lot of equity in are home and we were told the house is worth about $540.000 but we bought it for $420.000 back in June 2005. If you have any advice please share it with us.
Thank you,
Dana
email address: nightsunshine65@yahoo.com
Dana, did you join my list? You should join…you can do that at http://www.MortgageReliefFormula.com
Okay, so if you are getting your first mortgage worked on, congratulations for working on that problem instead of doing what most folks do which is to ignore it until it’s too late.
I’d absolutely work on the second mortgage too. You need to present things to the lender honestly but in a way that shows the situation as dire as it is. Get them to cut you some real slack. And make sure you can afford even modified payments, or else you are better off selling now if you are even thinking about it.
regards
–Richard