Breaking Press release, Loan Modifications Do not Work
We’re going to speak today regarding loan modifications. Yesterday we talked about principal reductions and the 45,000 home owners that are potentialy going to be aided by this Bank of America program. Another popular proposal of for helping out the terrible mortgage business is the loan modification. It is regularly suggested by people that don’t really know what they are talking about and of late we found evidence of this.
There was recently a review done over the last 12 months on the subject of all of the loan modifications made from January through March of 2009. This report discovered that by December 31st of 2009 more than half of US borrowers defaulted again after just nine months. This federal report confirmed that the default rate on these loan modifications was more than 51%. If you broaden an additional 3 months, the default rate goes up to 58%. Ultimately, the longer we wait, the higher that default calculation will go.
Loan modifications are proving themselves to be a mythical resolution to a growing problem. In fact, there is a senior economist with a company called Core Logic that says that loan modifications are undoubtedly not working well. He goes on to comment that rewriting these loans is pointless because they are underwater.
They also chat about more than 10 million foreclosures taking place in the next year. Furthermore, they note that the quantity of deliquent borrowers has increased by 60% from the birth of 2009 to the birth of 2010.
The most vital thing to take from this is that there will be additional opportunities to take on short sales. Short sales are not leaving. Get your company in order and prepare yourself to take on extra short sales. We can help you out with the Crush It package that has many documents to help you throughout the short sale process.
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