Refinancing is Important to Prevent Further Foreclosures

Posted on June 19, 2009
Filed Under Foreclosure Homes | Leave a Comment

Refinancing is very important to prevent further foreclosures but it takes time to steer through piles of documents and requires patience. Red tape makes matters worse.

Although the new Obama has launched a highly publicized measure involving $75 billion to help borrowers negotiate the deals, enforcing refinancing or modification is no easy task. This is leading to despair.

For those who feel they qualify for the new deals it is best not to sit back but to find out all the information they can get to veer around the problems that might crop up in the process. Kevin Walker of Mortgage Report said, “People are confused. Frankly, lenders are still trying to figure out the procedures they’re supposed to follow to implement these programs.” MortgageReport.com is a website that has recently been launched to help borrowers find out if they are eligible for federal help.

Not all the loans can be modified under Making Home Affordable plan that had been launched in February 2009. In the middle of May the Treasury reported that till date 55,000 loans had been modified.

Even without the help of the plan the lenders can modify loans. Hope Now that had been launched the previous year under the Bush administration consisted of an alliance between the government and the mortgage industry. It claims that they had modified 127,000 loans in April this year and listed new repayment schedules for 143,000 borrowers.

The figures hardly scratch the surface of the gigantic problem. The Obama plan targets help to 9 million borrowers either by refinancing or modifying their loans.

Despite all these the foreclosure waves continue unabated. From January to May there were 1 million fresh foreclosure postings this year. Moody’s.com expects there will be a total of 1.54 million new cases of foreclosures for sale before the year draws to a close. In 2008 there had been 1.44 foreclosure listings.

Allen Robinson of First Trust Mortgage Corporation of southern Florida said that the lenders are not responding to the call for drastically changing mortgage terms. They are not cutting back on the principal that is due but are either cutting rates or extending the time period.

The loan servicers are flooded with applications. Jessica Cecere of Consumer Credit Counseling Service based in Palm Beach opines that less than 2% of the loans are undergoing modification. Lenders however contend that they are trying their best to keep up with the demand but the numbers are too huge to be tackled easily.

Search Foreclosures for Sale in Florida by Top Cities

• Miami Foreclosures for Sale
• Hollywood Foreclosures for Sale
• Orlando Foreclosures for Sale
• Lehigh Acres Foreclosures for Sale
• Lake Worth Foreclosures for Sale

Popularity: 4% [?]

Comments