Will I Get A Modification From My Mortgage Company?

Just because you have not been foreclosed on yet, does not mean you will be getting a mortgage modification.

Foreclosures will be increasing again, as the freeze on foreclosures by Fannie Mae and others has ended.

Having further depressed the housing market with all the foreclosures already completed, mortgage companies appear to have kept some 600,000 foreclosed homes off the market.

That is, they have foreclosed on these homes, but made no effort yet to re-sell them.

Are they waiting for yet more bailout money?  Afraid to further depress housing prices by putting them up for sale?

Who knows!

But do not believe that they are being nice to you, if you are in default, and have escaped the foreclosure process thus far.

Getting someone to even answer the phone to talk about mortgage modification may be impossible.

As Michigan mortgage attorney Kurt O’Keefe and others have blogged on this site, the voluntary mortgage modification process has produced more noise than actual modified mortgages.

The much touted Obama plan started releasing details of the plan to pay mortgage companies for loan modifications.

Well, every time the government subsidizes something, we get more of it, so we will get more mortgage modifications.

But, less than half of the loan modifications done last year reduced the monthly payment by more than 10%.  Not likely to help many homeowners, which is why most of the modifications actually done last year were in default again within 8 months.

So, what is the point?  Well, now the mortgage companies will get a bounty from our tax money for doing mortgage modifications, whether they actually work or not.

Will you get a loan modification under the Obama plan?

Only homeowners who owe on their mortgages up to 105% of the home’s value are even eligible.

This excludes virtually everyone who is contacting me about getting a mortgage modification.

Please, do not fall for the mortgage modification scams!

Do not hire a lawyer from California to fill out papers you can fill out yourself.  Do not pay hundreds or thousands of dollars to someone who guarantees no result.  Or gets you one of these modifications that lowers your payment 10%, and you are behind again in 6 months.

Judicial mortgage modification remains the best remedy.

Related posts:

1. How Can I Still Own My Home After The Mortgage Company Foreclosed?
2. Mortgage Enhancement and Modification Act of 2008
3. Loan Modification Works Better If Payment Lower