Loan Modification News: Based on a promise made by President Obama, he is “going back to the drawing board” as it relates to investigating and employing strategies that are effective at reviving the dormant housing market. That being said, the president also added that the housing crisis facing America can’t be remedied by any sort of government program. According to the president, the constant dip in the housing market has not yet reached a stage where it’s bottomed out. A number of economists have predicted that the lowest point in the current recession will not be reached until the middle of 2012 at the earliest.
The fact of the matter is that it’s very difficult to gauge at precisely which moment the bottom of the housing market plunge has been reached. These kinds of downturns can and do last for many years, and taking a look at the degree to which home prices have fallen is not necessarily an indication of what future home prices are likely to be. No matter how far prices have fallen, if enough buyers haven’t yet been tempted to take the bait and invest in real estate, the prices are likely to fall even further. Price “stability” was achieved as a result of the government’s homebuyer tax incentives. However, those incentives are no longer in place, and the stability of prices has therefore been compromised.
At a recent White House function the president responded to a number of questions which had been posed via Twitter. He admitted that he was not adequately prepared to face the economic challenges that he had inherited from the preceding administration in the beginning of 2009. Obama stated that he failed to understand the severity of the crisis because the majority of economists failed to understand it themselves. In his own words, one of the things he would have done differently was to do a better job of communicating the fact that the economic challenges facing the nation were not going to be disappearing overnight.
The president made a point of defending efforts on the part of his administration to secure mortgage modifications for homeowners desperately seeking to hold on to their homes. He did acknowledge that it was a complex process given the characteristics of the securitization market. Obama stated that there are many lenders who do not hold mortgages and it therefore a very intricate process attempting to determine who owns what.
The president expressed the desire to connect responsible homeowners with competent lenders who are able to provide them with meaningful support. For this reason, his administration will forge ahead with its intention of establishing and implementing federal loan modification strategies. If done correctly, the end result should be one in which both the homeowner and the lender benefits from the modification process.
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About Carla Ghosn
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I am CEO and Founder of Caal (mycaal.com) keen on helping American homeowners save their home, save their dream. If you need help with your loan modification, visit www.mycaal.com to see how Caal assists you in pre-qualifying your loan for approval, as well as preparing and printing your loan modification package online. |
I’m a high school drop out, with no training in the law. I’ve fought my
own foreclosure case and have won in the court of appeals. It isn’t
rocket science, and to understand what is going on, and what the best
remedies are is not difficult – investigate the criminal violations,
prosecute, and where appropriate convict. The entire landscape would
change quickly, and radically, if there were actually enforcement of the
laws taking place.
Mukasey, under Bush, turned a blind eye to
the clear and evident fraud occurring in Federal bankruptcy courts. Both
of them should have been fired as a result.
It is no different
with Eric Holder. If he doesn’t know about the forgery, evidence
fabrication and false swearing occurring in Fed BK courts he needs to be
fired (see In Re Hill and In Re Wilson for 2 examples).
If he does know and is doing nothing, and failing to inform the President, he needs to be fired. If he does know, and is informing the President, and the President is doing nothing, they both need to be fired. If
I can figure this stuff out so can they. In fact it is their job to
know this stuff and to take appropriate actions – enforce the law,
investigate, prosecute, and where appropriate convict.
Glenn, first of all,
congratulations on winning the foreclosure case! It may not seem difficult at all to you or it
may not be difficult period. Nevertheless, there have been Millions of
foreclosures since the housing crisis and if many of these people who went
through foreclosure knew what you know, they may have had a chance. I wish you
can share with us more details so we can learn how you have done it and
recommend it to others. It looks like you have done a great deal of diligence
and you seem to be very competent. Also, I find you courageous. You see, many
people get scared fast and give up. I have personally attended some foreclosure
proceedings to learn more about the subject matter and I see “poor”
people coming to the court with no representations, not knowing what to do, and
they end up losing. I wish what you say here “If I can figure this stuff
out so can they” is realistic.
Lots of corruption going
on at levels beyond us, meaning the 500-pound gorillas; these companies are
hardly ever prosecuted or trialed.
In terms of corruption, it does not seem to be so much about what you do wrong, but who you know, and who you are.
On top of that, they subject owners who need help the most all kind of obstacles and months of delays and resubmittal of resubmittal of data that they already had only to decline most applicants.
Here you have a simple system created by one smart individual that can prequalify applicants in minutes while the fat cats have an army of employees wasting months each of millions of American homeowners!
Thanks for giving me credit for creating mycaal.com. Yes, it pre-qualifies people in minutes. The other issue is having the bank process your loan modification properly and promptly. Like many of you already know, banks often lose documents, ask for them again; many of their staff members are not competent to analyze loans for a modification so they do not know whether to approve or not, etc. Something has to be done in the banking system.
Something is wrong with this picture.
Our government does superb job in wasting Billions and rewards those who screw up w billions more.
About time president Obama admits the obvious� what took them so long? I vote for few bright minds like this apparently smart young lady or someone like her to head that housing mortgage agency department. She could save tax payers Billions.
Kim, nice comment! And who this young lady might be?
Perhaps it is more lucrative for them to process applications and resubmittal of aps and they will make more profit from aps than banking.
Very true and I talk about that in one of my previous blogs. The banks are making $1000 for each loan modification they entertain. So yes, why wouldn’t they accept applications several times.
Our Goverment needs to look at it alot closer, Thers alot of struggling home buyers that need help, I’m surte glad the President is seeing this problem hopefully he will fix it.
Miguel
I hope it is not too late. What the President needs to do is what every great CEO does, gets his hands dirty in the process and truly understand the problems that have plagued the loan modification process, which is mostly caused by the banks not being transparent, and not processing loan modification efficiently.
All we can do is that it does comes back. And we don’t repeat the same mistakes
Great majority of homeowners who struggled managed to barely keep up with their underwater home payments should qualify and definitely give them breathing room when they are granted loan modification that gives them lower interest rate and/or reduction in principal.
I wish the banks would give out a significant number of balance reduction and avoid so many short sales. But banks are not so logical, are they? Wake up people, we, the taxpayers, bailed out the banks and the banks barely did their jobs in modifying less than One Million loans. We all need to write to our congressmen, our attorney generals, and push for more loan modifications to be approved.
I’m a high school drop out, with no training in the law. I’ve fought my own foreclosure case and have won in the court of appeals. It isn’t rocket science, and to understand what is going on, and what the best remedies are is not difficult – investigate the criminal violations, prosecute, and where appropriate convict. The entire landscape would change quickly, and radically, if there were actually enforcement of the laws taking place. Mukasey, under Bush, turned a blind eye to the clear and evident fraud occurring in Federal bankruptcy courts. Both of them should have been fired as a result. It is no different with Eric Holder. If he doesn’t know about the forgery, evidence fabrication and false swearing occurring in Fed BK courts he needs to be fired (see In Re Hill and In Re Wilson for 2 examples). If he does know and is doing nothing, and failing to inform the President, he needs to be fired. If he does know, and is informing the President, and the President is doing nothing, they both need to be fired. If I can figure this stuff out so can they. In fact it is their job to know this stuff and to take appropriate actions - enforce the law, investigate, prosecute, and where appropriate convict.
I can’t help doubting the sincerity of any politician who talks about having a desire to help the average homeowner. Seems to me that things like honor and integrity flew out the window a long time ago in the realm of politics. Sure, maybe there are the VERY rare individuals who are actually trying to make people’s lives better, but generally speaking, it’s a matter of lining their own pockets…and screw the people. It’s a sad state of affairs. No wonder why the American dream remains just that for most average people…just a dream.
Grant, I liked what you said “No wonder why the American dream remains just that for most average people…just a dream.” Why do you think that?