How is Your Loan Modification Doing?
September 15, 2011 by
Filed under
Buying
If you’re like most, not well. it looks like Lenders are having second thoughts about the program.
Trial loan modifications are being canceled at an increasing rate
Lenders are canceling trial loan modifications at an alarming rate. In fact, the number continues to rise so much that Citigroup has canceled the program altogether.
Citigroup, along with B of A had also been offering principal reductions to try to help home owners in trouble, but that program also seems to be offered at a reduced rate as this housing problem continues to plague, not just the U.S., but the world. Stock markets around the world have been in dive mode – the DOW dropped below 10,000 again today. The reason most often cited is the housing problem here in the U.S. which is not only not improving, but seems to be getting worse. People are not buying – while banks are sitting on cash, and tightening lending guidelines at the same time. The rationale, of course, is the fear of more bad loans.
The government advises home owners who have either been denied a modification, or have had trial modifications canceled mid-stream to keep trying other alternatives before seeking either a short sale, or letting the property go to foreclosure.