Certainly, with loan modification being one of the largest growing businesses in America, it is no surprise to see a growing competition between loan modification services in Washington and the rest of the country. With such an expanding selection of modification companies and mortgage companies, finding a trustworthy, certified, and successful service has become a challenge for distressed homeowners.
Many mortgage mediation services out there ask for money up front, charging fees for doing nothing more than seeing if a borrower even qualifies. Of course, if they do, more fees are soon to follow. A number of free services are now being offered by legitimate modification companies, including a free loan modification evaluation to qualify for the Obama Plan.
Finding a qualified servicer is the best bet for a homeowner to acquire a successful loan modification, and assure they not only save their home but are able to afford to stay in it.
Free Loan Modification Evaluation, Washington
LOAN MODIFICATION SERVICES, WASHINGTON
Loan modification services are springing up around America with the rising boom in foreclosures and the growing necessity for mortgage mitigation. According to a recent report from the Center for American Progress, mortgage mediation services are helping Washington homeowners avoid foreclosure by forcing banks to sit down with borrowers in order to discuss all available options in order to find the most affordable solution for both parties. During mortgage mediation banks and homeowners try to reach an agreement with non-binding results, and with nothing being forced on either party. Loan modification also cuts out the middle man, helping homeowners avoid operators who answer customer service lines at banks and mortgage companies.
The government is now addressing foreclosures through the Department of Housing and Urban Development. According to Michael Daly of HUD, "loan modification... reduces the payment via interest rate. We want to get the payment back to a typical ratio of 31 to 38 percent of the gross pay. There are currently 55,000 trial loan modifications and we hope they all go on to be viable."
Most Washington homeowners now qualify for hundreds of dollars in monthly savings with a loan modification under the Obama administration's "Making Home Affordable" plan. Thanks to the HAMP program, a homeowner's mortgage payment cannot exceed 31% of their gross income, and because most home loans exceed 31%, the majority of borrowers are eligible for assistance.
Housing and Urban Development (HUD) has confirmed that lenders have extended modification offers to 40,000 borrowers struggling to pay their mortgage in the second week of June. Back in March, the Obama administration launched their "Making Home Affordable" plan, which assures the government will pay servicers a financial incentive per every modified loan, granted the offer is successful and depending on when they make it. [Time, 6/22/2009]
Recently President Obama unveiled his plan for overhauling financial regulation by creating a Consumer Financial Protection Agency to monitor consumer financial products and revamp the entire home-loan process. Loan modification services are seeing a boom in business due to the stimulus plan approved recently by President Obama that includes help for distressed home owners. Under the new plan, owners that are behind on payments will no longer be limited to the standard 20% equity once needed to get approved. Thanks to the government now backing many of these loans, as well as protecting banks from being sued by bond holders, lenders are now able to approve more modifications. [Associated Press, 6/23/2009]
Contrary to what many may believe, a foreclosure is neither desirable nor profitable for banks, which commonly end up losing thousands of dollars on an executed mortgage. Coincidentally, modifying a loan is the best option for the borrower and lender to work together to find a solution. Loan modification allows the homeowner to keep their home and the bank to recover their loan amount in full. Unfortunately for millions of homeowners across America, due to the rising demand in modification requests, banks are now overwhelmed and unable to accommodate a vast number of homeowners. For this reason, licensed and professional loan modification servicers, often backed by skilled legal teams, are now able to assist homeowners achieve the necessary modification they need to save their home and stay there affordably.