Legal Mortgage Modification Program Advantages [mortgageinsuranceguide.blogspot.com]
Question by sandraplay1: Is there a negative side affect from the affordable home mortgage modification program by Obama and how does? this program actually work? Best answer for Is there a negative side affect from the affordable home mortgage modification program by Obama and how does?:
Answer by teran_realtor
HUGE negative side effect. Poor people will become poorer and the rich will become richer..... sadly, that is the opposite of what these liberal programs say they will do. It used to be that lenders would only lend to people who had three things - decent credit, some money saved up and not to much debt already. In the late 90's, groups like Acorn convinced the government to interfere with what the lenders were doing and get them to drop one or two of those requirements. The lenders did it to make more money, while having their losses (they KNEW there would be losses) covered by the government. This is why we're in the housing mess we're in now. Fast forward to 2008 and 2009, and the government steps in to stir the pot even more. Sad, but in about five years, so many of the people who have gotten into houses without any money saved up will be foreclosed upon and be renters again - but now with no money saved, AND bad credit too. Acorn wanted the rich landlords to no longer have all the houses. In five years, the rich landlords will be buying houses for pennies on the dollar - and renting them to people who should not have been buying yet. Bush was stupid for allowing this to start on his watch. The mistakes he made on the economy have to do with allowing things to get too liberal. Our country was SUPER stupid to think that the "fix" for our economy was to go from a little liberal to off the charts socialist. We're in for a long, hard ride. People are buying houses with no savings and living paycheck to paycheck. Meanwhile, our current administration is promoting an agenda that causes business owners to NOT invest money in growth - that means when people get laid off, there are no new jobs for them.
Answer by researched it
No, the negative effect comes if you do nothing when you have a loan that you can lo longer afford. If you do nothing then you won't be able to solve your problem. The only other negative is that so many people start working with scammers instead of using the real government relief program. Scammers have a way to take your home out from under you. Be very careful about who you work with. The program is in place to help people who qualify to get into more affordable loans so that you don't lose your home down the road. I've attached an article that discusses how to figure out whether you qualify. If you have an adjustable rate mortgage that is going to adjust to a point where you can no longer afford it or a huge balloon payment that is going to be due, the program will work with you to obtain more reasonable financing so that you don't lose your home.
Debating where the money went in the failed mortgage modification program, with Christian Weller, Center for American Progress and Dan Mitchell, Cato Institute.
mortgageinsuranceguide.blogspot.com Dan Mitchell on the Failed Mortgage Modification Program
The Advantages of Legal mortgage modification programs can be hard to understand if you're new to all of these terms. In this article I'm going to break it down for you and show you why legal mortgage modification program might be worth checking out.
Normally in the progression of a mortgage payments are made until the mortgage is fully paid. If the mortgage is not paid the lender usually holds a lien on the property which acts as collateral. Pretty much any change in the mortgage is considered a modification but there are still a few different categories of modification.
Some of the types of modifications and advantages are listed below:
- Â Lower interest rate or fixed rate turns into floating rate
- Â Late fees are reduced
- Â The loan term can be longer
- Â Lower monthly payments
Let's first take a look at what lower interest rates can do for you.
If you have lower interest rates obviously you will be paying less in the future. A lot of people rush out to get a loan and just figure that they will worry about the high interest rates later. This is a huge mistake that gets people into major trouble and it's no different when dealing with a modification.Perhaps one of the greatest advantages to doing a mortgage modification is the fact that you will be left with lower monthly payments. This in itself is a huge advantage and should be one of the main motivating factors for you. This combined with an extended loan payment period should help you greatly if you're behind in payments. This is one of the best things about a loan modification program and is one of the reasons why it is becoming such a popular option for many.
Like many other of the attractive benefits of getting into a modification program your late fees are also reduced.
So this means if you have any late fees you can knock them down just by doing this. In the end it's all of the benefits together that create the real value in loan modification programs.The borrower (you) can be in bankruptcy, late, foreclosure or in default when applying for the modification application. Sometimes the lender will even offer a modification just so that he/she can provide better rates for you. Also the state and federal government will label a modification program as voluntary or mandatory.
The bottom line is there are many advantages to legal mortgage modification programs that can help you during your tough times. The only real concern is figuring out if you qualify for mortgage modification or not. Different lenders have different terms but in general it can be tough for some borrowers to qualify. This can especially be helpful to struggling owners who find there is no other choice. I wish you good luck in your quest to find the perfect legal mortgage modification program! Remember to be smart when it comes to your loan modification review process!Â
More Legal Mortgage Modification Program Advantages Issues
