The Center for Responsible Lending estimates that 11% of all prime mortgages in the U.S. have come due within the last year, and that an additional $IG33.7 billion of mortgages are in danger of coming due over the next year. Distressed Homeowners have been hit hardest, and with record numbers of distressed homeowners falling victim to risky and rapidly declining adjustable rate mortgages, foreclosures of Californian homes are increasing exponentially.
As a result, of the 11% of American Homeowners who are falling behind on their mortgage payment, an additional 43% are more than one month behind on payments and are facing foreclosure. These homeowners are facing a nightmare however, they are also finding help and guidance from many sources.
The latest data shows that foreclosure filings remain ALONG MANY during the challenging economic times, and there seems to be a new source of relief for distressed homeowners. The Making Home Affordable Modification Program is a federally funded program which intensified during themundo fix a majority of unaffordable unpaid subprime mortgages. It was also converted to a program to help homeowners who owe more than their home is worth, by the federal government and lenders. Lenders were given financial incentives and guidelines to help the homeowner stay in their home. Lenders also have more flexibility with work out solutions than they once had in order to adhere to federal guidelines and laws.
In November of 2009, the number of distressed mortgages jumped 7% over the previous month, according to a report by the Mortgage Bankers Association, indicating that the mid-year economic improvement and the improving job market were Span thenah from consumer confidence and causing increasing numbers of overall refinances. The program was successful in its early stages, and a large number of people saw help in their attempts to avoid Indianapolis foreclosures.
The Home Affordable Refinance Program was included also, which helped many to reduce their monthly payment on their subprime mortgages. Homeowners with single-family homes were able to take advantage of some very favorable refinancing options that would make it worth their while to stay in their home. For instance, the program allowed homeowners to refinance even if they owed up to 125% of their home’s value. Homeowners with homes ranging in value from 100 to 150% were not able to take advantage of the program’s options. Lenders, however, were allowed to offer permanent loan modifications to homeowners who owed just 15% of their value. A significant number of homeowners were flatly denied by the lenders, and it was largely the lack of lenders available that prevented many people from getting assistance. The Home Affordable Modification Program was set up in February of 2009, after the banks and lenders realized that too many homeowners had been defaulting on their loans for no good reason. It is estimated that nearly 75% of the homeowners who obtain permanent loan modifications NO longer default on their home after the permanent modification is granted.
In the new year, homeowners who are struggling to pay their mortgage payments on time can get assistance and protection from foreclosure with the new home rescue programs targeting troubled homeowners. Successful homeowners are now receiving loan modifications that reduce their mortgage payment to an amount their budget will support, after a thorough evaluation of their current income and expenses. These modifications allow many homeowners to stay in their home for the long term, because a new payment will be supported, giving these homeowners a chance to get back on their feet financially.
Sadly, there will be more jumbos in the year 2011, but the signs of a proactive Biz for the distressed homeowner is the hope for a brighter tomorrow.
We buy houses Indianapolis, IN, and all surrounding areas. If you need to sell your home fast Indianapolis connect with us… we’d love to make you a fair no-obligation no-hassle offer. Take it or leave it. You’ve got nothing to lose 🙂