With a record number of home owners facing financial hardship and foreclosures on their homes, including many in the Orlando area, many people are looking for alternative ways to pay and lessen their burden. A pilot program for mortgage modification started last year in the Orlando area and not people across the nation are taking note.
The program, which started in federal bankruptcy court, has helped some owners save $100,000 in interest over the life of their loan through new mortgage terms. Even though the program has only reached a few hundred people, it is being seen as a great success across the state and nation for helping homeowners keep their homes and reduce their overall debt.
Many in the real estate industry are praising such efforts, calling it the only way to prevent more foreclosures, and mend the housing market. People under this program have received mortgage modifications, and some have even seen the principal of their loan reduced. Some have even such drastic reductions in principal that the reduction has covered their entire loan.
One of the worst feelings when a family faces a financial hardship is the stress and fear of being forced out of your home because of foreclosure. This program is working to help people with difficult situations stay in their homes and reduce their debt, in turn improving their overall wellbeing.
The program would require homeowners to file for Chapter 13 bankruptcy, but could drastically improve their situation. More importantly, the program has helped many of the homeowners stay in their homes.
Source: Herald-Tribune, “Mortgage modification may remedy foreclosure crisis,” Todd Ruger, Nov. 12, 2011