Stop Foreclosure Answer

In my blog post the other day, I let you know that the Making Home Affordable Program announced in early March is starting to ramp up.  The Treasury Department is starting to provide money for successful loan modification incentives to 6 mortgage lenders.

If a mortgage company wants to participate in the Making Home Affordable Modification Program they have to sign a contract.  In this contract they agree to follow the guidelines in the program.  They agree to modify the mortgages of eligible people facing foreclosure who want to save their homes.

The website for the Making Home Affordable Modification Program is www.makinghomeaffordable.gov.  I checked the website.  Thus far 11 mortgage companies have signed these contracts and are participating in the program.  These companies and their web sites are:

Name                 Web Site

Bank of America            www.bankofamerica.com/mha/
Chase Financial            www.chase.com
CitiMortgage                www.mortgagehelp.citi.com
Countrywide Home Loans         http://my.countrywide.com/media/hasp.html
GMAC Mortgage LLC         www.gmacmortgage.com
Home Loan Services, Inc.         www.viewmyloan.com
Ocwen Financial Corporation     www.ocwen.com
Saxon Mortgage Services         www.saxononline.com
Select Portfolio Servicing         www.spservicing.com
Wells Fargo Bank, NA         www.wellsfargo.com/homeassist
Wilshire Credit Corporation     https://www.wcc.ml.com

If you are facing foreclosure and your mortgage company is one of these, you may want to check to see if you may be eligible to have your mortgage payment lowered and have your mortgage modified under the Making Home Affordable Modification Program.  Go to this link, http://makinghomeaffordable.gov/modification_eligibility.html.  There is a simple test there which will help you determine this.

If you are eligible, I suggest that you talk to a lawyer or an expert in loan modifications.  Let them advise you on the options open to you.  They will let you know whether a modification of your mortgage under this new federal program is right for you.

You should also have them represent you.  Saving your home from foreclosure can be a long and challenging process.  You need a lawyer or expert to help you.  Even if they advise you that a modification of your mortgage under this program is best for you they can handle it all for you.  They will negotiate the best deal for you.  They also know how long it will take and can keep you informed of what is happening.  You want to make sure that you get the best outcome possible.

If the lawyer or an expert you hire recommends a better course of action for you other than a loan modification, they will guide you through that.

I will watch the Making Home Affordable website regularly to see if other companies sign contracts to participate in the Making Home Affordable Program.  As they do, I will pass their name and website along to you here on my blog.

I have written a special EBook for people facing foreclosure.  You may find this a valuable resource in getting the upper hand on this foreclosure and in protecting yourself and your family.  .

Much Success,

Mark Elkins

The Making Home Affordable Modification Program is the main way the Obama Administration hopes that people facing foreclosure will be able to save their homes. The plan is that they will save their homes through loan modifications. With these loan modifications their monthly mortgage payments will be reduced to levels that they can pay without problems.

These loan modifications rely on the people facing foreclosure, their mortgage payments and investors working together to accomplish this. The investors are the people, groups and organizations to whom the mortgages were originally sold.

The Making Home Affordable Modification Program was announced in early March. Already investor groups are objecting to this program. They are saying that they are the only ones who stand to lose in the process.

People facing foreclosure benefit because their mortgage payments are being reduced to levels they can afford. The mortgage companies are benefitting because they are paid incentives for successful modifications. The investor groups say that they are the only ones who get less. They will get a far smaller return on their investment than they had expected. The modifications nullify the contracts between the person and the investor originally signed at the time the mortgage was finalized.

Some of these investor groups are joining together to fight this legislation and to lobby against the Making Home Affordable Modification Program. They have also added that interest rates on mortgages may rise because investors may want higher returns for the increased risk they have to take on their investments.

The Obama Administration has said right along that the investors are protected. Loan modifications through this program will only be made where they are allowed under the terms of the contracts. In addition there is a test to make sure each modification is in the best interest of the investor. If it is not in the investor’s best interest, the modification is not made.

I knew that issues would arise with the Making Home Affordable Modification Program. I did not realize that they would pop up this quickly.

The Obama Administration is going to have to address the concerns of the investor groups. It is natural for investors to be concerned. After all the return they expected on their investment drops greatly with each modification. Administration representatives have to show them that they are going to benefit from these modifications. They should meet with the investor groups quickly and address each concern the groups have. They should also monitor the mortgage companies doing the modifications to make sure that they follow the guidelines of the program.

If the Making Home Affordable Modification Program fails, the foreclosure crisis in the United States will intensify. Home values will continue to drop. Not only will the person facing foreclosure lose in the process but every one of us will suffer.

I have written a special EBook for people facing foreclosure. In it I have outlined the steps you need to take right now to get the upper hand on this foreclosure and to protect yourself and your family. You may want to check it out.

Much Success,

Mark Elkins