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 December 12, 2008

Unfortunately, Even Mortgage Modification isn't Working
Some troubled homeowners that have been able to modify their mortgages are still trying to find their way "out of the woods".
The unfortunate reality is that more than 50% loans which were modified within the first 3 months of the year were again listed as delinquent. This is just a mere 6 months following the modification of the loan. After 8 months, the percentage rises to 58%.

Reports show the reasons for these high numbers are that banks did not modify the terms of these loans enough to benefit the homeowner for the long term. Add to this the fact that many of these struggling home owners were not good candidates for homeownership to begin with due largely to lack of income, illness or unemployment.

The problem is compounded further by falling home values in many areas of the country. This situation makes it difficult or outright impossible for the distressed homeowners to sell their properties.

Home owners who are in danger of not keeping current with their mortgage are advised to explore every possible avenue for refinancing opportunities and to only accept terms which will benefit them for the long term in this unstable and changing economy.