Mortgage Modification

It stands to reason that if a bank makes a loan more affordable for a borrower they are less likely to default on that loan.  So why are banks just now deciding to finally get in there and make some modifications?  Even now only 4% of homeowners in need of a loan modification are receiving them.

Some how they seemed to have finally gotten the message that they should be taking what they can get.  Foreclosures are very costly because of commissions, legal expenses, taxes and the HUGE loss in value of the property that would cause the bank to take a giant hit.

Some home owners are heading to events hosted by the Neighborhood Assistance Corporation of America.  Many lenders from most major banks are in attendance to help restructure loans based on what they could afford.  They say that 40% of borrowers leave these events with a decision made on their loan modification.

Most of the restructured loans result in lower interest rates.  Some even go as low as 2%.  Looks like the banks are finally starting to play ball.  Those working these events will sit down with a borrower and then start at the top and work their way down through the list of possible solutions.  Then the lender decides whether this solution financially benefits the bank over foreclosure.  Especially in the hard-hit areas of the country, foreclosure is just too costly.

http://money.cnn.com/2009/12/16/real_estate/great_mortgage_modifications/index.htm

PLEASE CHECK OUT OUR WEBSITE http//:www.TonyandLibby.com

December 16, 2009 · Filed Under Portland, Portland Real Estate, Real Estate Portland, Realty News, portland real estates, real estate beaverton or

Comment 

Nesting

Those who have the means are fixing up their current homes. There is a lot more “nesting” going on lately as more and more people are inquiring into updating their property.

Many home owners are looking for more space but after looking at the options, decide to remodel instead of buy a new home.  Often they find that they like their home, neighborhood, schools etc…  That is why they bought it!  Many times the numbers come out in favor of remodeling versus moving anyway.

Those in construction say that they are getting many more inquiring phone calls about remodel jobs but, because of the economy, are less likely to become a sale and if they do buy it is usually for less money.  Good news Bad news.  People are not quite able to spend like they did (bad news) but the interest is certainly there (good news).  It is only a matter of time before the economy encourages those people to pull the trigger.

One thing holding back those who are interested in a remodel is financing.  It is still quite difficult to get a loan and many of those having work done are paying in cash.

Another reason to do some updating around the house is the $1,500 federal tax credit for energy efficient home improvements.  Not only will it lower your bills but also improve your tax return.

http://money.cnn.com/2009/12/04/real_estate/remodeling_picks_up/index.htmPLEASE CHECK OUT OUR WEBSITE http//:www.TonyandLibby.com

December 10, 2009 · Filed Under Portland, Portland Real Estate, Real Estate Portland, Realty News, portland real estates

Comment 

Loan Servicers Under the Microscope

The Obama administration has decided to pressure loan servicers to do what they said they would do, which is help homeowners long term.

Many, many borrowers are stuck in trial adjustments when we really need to get them into permanent modifications. The government will be sending teams to the various institutions to evaluate what is taking so long.  Banks will have to submit progress reports twice a day during December.

$75 billion has been spent to help home owners but so far only 1,711 of those in the trial modifications have been moved to a permanent loan modification.

The financial institutions have claimed that home owners are simply not turning in their paperwork.  Home owners are saying that their paperwork keeps getting lost by the bank.  Personally I have had to spend many hours on the phone with a bank or two on behalf of clients and I have a really hard time believing that very many of these are the fault of the home owners.  I believe that, that is what the government will discover as well, if they really dig deep while visiting those financial institutions.

For example, the Obama Administration has had to do this before.  The Treasury and Housing department officials brought bank executives to Washington, D.C. to get them to increase their trial modifications.  Then a report was published to display the efforts of each institution.  This brought up numbers dramatically.  That just shows that they were not doing all they could on the honor system.  Hopefully this new plan will again get financial institutions to ramp up their efforts.  It’s just sad that these measures are necessary.

http://money.cnn.com/2009/11/30/news/economy/permanent_modifications/index.htm

PLEASE CHECK OUT OUR WEBSITE http//:www.TonyandLibby.com

December 1, 2009 · Filed Under Financing, New Home Sales, Portland, Portland Real Estate, Real Estate Portland, portland real estates

Comment