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Mortgage Modifications Archives

Foreclosure rates reach a six-year low

News for Florida's housing market, down in the dumps for many years during and after the Great Recession, continues to improve. Thanks to a more stable economy and an increase of loan modification applications, national foreclosure rates have reached their lowest levels in six years.

Second check issued for wrongful foreclosure

The Federal Reserve has announced that 96,000 people who received checks for wrongful foreclosure on their mortgages will also be receiving an additional check. The additional check will compensate homeowners who experienced wrongful foreclosure for an error that was made in the amount of the original checks they received. The initial checks were reportedly issued for amounts that were lower than recipients should have received. The discrepancy was caused by errors that were made by Rust Consulting, the company that distributed the payments.

Home foreclosure rates dropping

Florida has an elaborate foreclosure process compared to most other states, and it currently has some of the highest rates of foreclosure. However, the good news is that the number of foreclosures nationwide has dropped to the lowest level since 2009 and has declined nearly 20 percent since a year ago. According to a spokesman for LPS Applied Analytics, most new loans are high-quality, meaning that fewer new mortgages will end in a foreclosure.

Florida homeowners still defaulting despite government lifeline

A report released by the special inspector general for the Troubled Asset Relief Program called into question the effectiveness of the government's loan modification programs. One of the first programs introduced by the Obama administration was the Home Affordable Modification Program. The Treasury Department spearheaded the HAMP program, which provided $75 billion to help lenders ease the burden on overextended borrowers nationwide and stem the rate of foreclosures in hard hit markets like Florida and California.Banks participating in the HAMP program used the money to reduce monthly payments for at-risk homeowners to no more than 31 percent of their income. Despite these loan modifications, many borrowers have still found themselves in default just a few years later. Those who signed up in the final two quarters of 2009 have default rates of 46 percent and 39 percent, respectively.

Florida homeowners may soon access new loan modification program

Homeowners in Florida and across the country have the option to modify their loans and take advantage of lower interest rates, but the process has been fraught with paperwork and technical requirements. For those holding relatively high-rate mortgages, the "Streamlined Modification Initiative" is set to simplify the process for owners with 90 days or more of delinquent payments. Some restrictions still apply, and the best source of information on eligibility is the servicer of the loan. The initiative was passed by the Federal Finance Housing Agency (FFHA) and will take effect on the first of July. All loan modifications under it will be handled by the agency's Freddie Mac and Fannie Mae lenders. Documentation is not required, but it may increase eligibility for more savings for those facing financial hardship. Historically, most lenders comply with (FFHA) actions by establishing similar programs, but lenders are not required to participate. A primary restriction on eligibility is that only first mortgages with less than 20 percent delinquency are eligible.

More mortgage modifications may help Florida economy

Mortgage modification is an action frequently initiated by homeowners to lower the cost of monthly payments on their homes by taking advantage of reduced interest rates. According to one calculation, a reduction from three to five percent interest on a $150,000 mortgage can save homeowners $145 a month. Mortgage modifications are seen as a win for both the borrower and the economy by some economists. They claim that homeowner savings translate into increased spending, and this is what fuels job growth. Mortgage holders haven't missed out on the lesson of personal savings. Whether they have been steered into modification by the threat of foreclosure or simply need more cash to make improvements on the home, an increasing number of Florida residents appear to be taking advantage of the opportunity.

Mortgage modification may not always provide relief

In recent years, many Florida residents have found themselves in the unfortunate position of potentially losing their homes to foreclosure. This process can be confusing and overwhelming, especially where the foreclosure comes about through circumstances beyond the control of the borrower.One 57-year-old woman in another state spent more than two years attempting to avoid foreclosure. She has made telephone calls, completed forms, protested her payments and even had meetings with the bank. However, her efforts were in vain. The bank sent the woman a letter that purported to offer relief yet wanted to increase her payments by more than $200 per month, which is not a practical solution for a grandmother struggling to make ends meet. After 12 years in the home, the woman still has not received a reasonable mortgage modification and now faces foreclosure.

$60 million paves path for improved housing market, homeowner aid

There are signs that the economy is improving, whether it is fewer foreclosures, a lower unemployment rate or less consumer debt. There is still a long way to go. Homeowners are still struggling to pay their mortgages and keep their houses. There are still those who have already lost their homes because of a faulty system.

Foreclosure activity in Florida increases

Many Florida residents know the feeling of their heart sinking when they receive a foreclosure notice. In many cases, these residents have lived in their homes for years and cannot picture having to give it up. However, while receiving a foreclosure notice is surely a frustrating and stressful time, those receiving these in Florida should know they are certainly not alone.

Florida widows stuck in confusing nature of foreclosures

We've all heard the horror stories of trying to avoid foreclosure and obtain a loan modification. There have been complaints of lenders messing up forms, homeowners being asked for the same paperwork from several times by different representatives, and phone calls not being returned. In fact, many of these complaints even led to a $26 billion settlement between five of the largest mortgage servicers in the U.S.

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