Matter of fact, it appears that the Obama Administrations HAMP program (major element of HAMP being loan mods) may be canceled very soon.
In this CNBC video a Wells Fargo describes how their loan modifications work… or don’t work. What is not discussed in this video are the terms of a typical loan modification. For example, by 50% (give or take). What happens the the 50% they are not paying? Its added to their unpaid loan balance. You get the idea. Loan mods in their present form are nothing other than more… extending and pretending.
Its crucial that you help your clients understand the true ramifications of a loan mod. Bottom line, its temporary relief. The negative equity remains with the home 99% of the time. For many underwater owners the smartest move truly is to sell via Owner Financing whether it be mortgage assignment or wrap around mortgage.