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After 10 months,  how is the effort to modify loans going?

President Obama promised that nearly 4 million homeowners would be helped through modification, but the initial efforts went slowly as lenders moved slowly.  In July, the President and his staff called lender representatives to Washington and told them to pick up the pace.  The most recent report released December 10 indicated that the program is not only on target but ahead of schedule in terms of people who are at some point in the process.

• 728,000 modifications have been made – 25,318 of them in the Washington, DC metro area
• Borrowers with modified loans are saving an average of $550 per month
• Only 31,382 borrowers have moved from the trial phase of the program to the permanent phase
• So far, most borrowers are keeping up with their payments

The Administration met with lenders and loans servicers in Washington this week to ascertain if they are doing all they can to make the trial conversions permanent.  Meanwhile, the push is on for people in their trial period to sign the paperwork to make the modification permanent.

As noted by Chief of Treasury’s Homeownership Preservation Office (HPO) Phyllis Caldwell, the report proves that “struggling homeowners across the country continue to receive immediate relief in the form of reduced monthly payments and a second chance to stay in their homes.”

These facts contradict a study by a watchdog group that came out the same day as the government report.  The study claims only 10,000 permanent modifications have been completed and echoes Treasury department fears that 40% of people with modified home loans will re-default within 5 years.

For many homeowners, loan modification is a solution that can work long term if the reduction is substantial enough and if the other expenses associated with the home fit within the budget.  For others, who have a home too pricey for them, other debt, or a faltering job, the process may only prolong the agony before they either lose the home or make the decision to move on.

If you are debating whether you should modify your loan or go another route, Express Homebuyers offers an alternative.  We will buy your home for cash and guarantee completion of the process within a couple weeks.  We tell you up front what we will pay; if you agree, you are on the way to a quick resolution.  We even offer you a $2,500 upfront advance so you can plan your fresh start.  Call us at 1-877-804-5252 or check out our Express Homebuyers website for more details.

Did you see the Dr. Phil Show the other day?  A guest recalled how devastated she was to find the sheriff on her front steps, with an eviction order in hand.  Her home had been foreclosed after months of notices and legal actions.  All this time, her husband had hidden the mail from her that warned how dire the situation was.  She knew the finances were bad as her husband had lost his job and both of them had hocked their rings to prevent their car from being repossessed, but she never realized how grave things were.  Now, she and their kids live with her parents, in view of the foreclosed family home.  He sleeps on his mother’s couch and is trying to repair his fractured marriage.

The saddest thing is in this situation is that the husband’s denial and deception turned a financial difficulty into a financial nightmare for the whole family.  The family may not have been able to keep the home, but failure to confront the problem closed the door to any alternative. (For the full story, see Is Charlie ready to deal with reality?)

According to investment broker Marilyn Logan, these unhappy former homeowners could have altered the course of events by following a few simple rules:

1. Admitted they needed help – and done it early.
2. Contacted their lender at the first sign of trouble
3. Resisted the temptation to deplete retirement savings
4. Sold their possessions

This is good advice.

Most people have not faced foreclosure, so have no experience in dealing with it.  Lenders, on the other hand, while not thrilled to hear of borrowers’ problems that will affect their ability to pay, have heard it all.  They are in the business of lending money, not managing property, so they would prefer to work with a delinquent borrower than take back the house.  Notifying the lender at the first sign of trouble, (and certainly by the time the man in the story recounted above lost his job) may have changed the outcome.  Ignoring the bills and not opening the mail doesn’t relieve the problem.

You Can Get Reliable, Honest Help

If you are in this situation and find your lender is not too sympathetic, there are many non-profit organizations set up to help.  Many times, they will deal with your lender.  Of course, not every organization that says it will help homeowners has your best interests at heart, so make sure to find a HUD-approved counselor, not someone you saw advertised on a telephone pole or late night TV.

When people are desperate, they look for any money they can make liquid, including their retirement.  Tempting as it is to tap the 401K, Logan says, distressed homeowners should leave it alone.  Her thinking?  It is easier to get another home than rebuild retirement savings.  Lenders might not be sympathetic to your not paying the back mortgage while you have money sitting in the 401K, but Logan’s advice is thought provoking:  sell off other assets you have, maybe even your possessions.  Or maybe it’s time to unload the house and start over.

The thinking here is clear.  You bought your home for your family (even if your family is just you and your cat.)  It’s more important to keep your family intact than save the home.  As much as you love your house, it’s your family that makes it a home.  If you are in troubled circumstances, choose your family even if it means moving.

Looking for a quick and trouble free solution from a reputable company?  Express Homebuyers can buy your home for cash.  We assess your home’s value in a phone call and make you an offer on the spot.  We will even give you a $2,500 cash advantage to help you move.  Within a couple weeks of accepting our offer, you are free and clear of any obligation to the property.

Wondering how this works?  Check out our Frequently Asked Questions for an overview of program, and then call us at 1-(877) 907-3232.

The worst thing about being in a position like impending foreclosure is that you are pushed to your limit.  Even in an economy where foreclosure is common, it is hard not to feel angry, frustrated, and depressed, overlaid with a sense of failure when you can’t pay for your home and then see it taken from you. It is even more debilitating to read in the paper that banks don’t even want your home and are currently burdened with a large inventory of foreclosed properties.  If you’re in this situation, you might feel tempted to lash out at the world – at the bank, your spouse, your kids, even your house.

Silver Lining?

Although you have a lot of yourself tied up in your home, this situation affords an opportunity to reevaluate your priorities. When it comes right down to it, is a building worth all the aggravation it is causing you and your family?  Is it worth risking your family for?

Sometimes people hate to let go of things because they don’t think that same chance will ever come their way again.  With a home, that is definitely not true.  Depending on how the situation plays out, you will be able to buy a home within three years (maximum) if you take the time to rebuild your finances.

You may have heard that going to a housing counselor is what you need to do when you’re in trouble.  The purpose is finding a HUD-approved counselor is partly to explore ways to save the home, but these people can also lead you to resources to help you rebuild your credit, find rental housing, and maybe even find a job, if that that is part of the reason your finances have become unglued.  Not every solution to your financial problems will result in your keeping your home, but there are solutions that will help you overcome your current circumstances with dignity and assure a better tomorrow.

Sell Your House, Fast.

One solution you may not know about is selling your home for cash. Admittedly only one of many options, but it is a great way to sell your house fast.  There are some scammers out there who promise to do this, but a legitimate company that can alleviate your obligations by purchasing your home could be a way out for you without having to suffer some of the more drastic consequences.

Express Homebuyers has been buying properties from distressed homeowners in the Washington, DC metropolitan area since 2003.  We are accredited by the Better Business Bureau (BBB) and Members of the Who’s Who Register. Only companies that adhere to the highest standards for ethical business practices can be affiliated with organizations like these. Check us out at the Better Business Bureau.

Regardless of whether you are late a few payments, have no equity, or need a lot of repairs, we can help you.  Wondering how this works?  Check out our Frequently Asked Questions for an overview of program, then call us today at 1-(877) 907-3232 and get your life back.