The AP reported in January that  the plan to fix the foreclosure crisis by President Barack Obama’s has been a dud!

This has placed the nations housing market recovery at risk.

It appears now that hopes were inflated when Obama revealed his program in Arizona to high school students (that should have been a clue right there)  last February 2009.   A year later, only about 750,000 homeowners — a fraction of the 3 million to 4 million originally projected — might complete just the application process.   This is a prediction from Mark Zandi, chief economist at Moody’s Economy.com.

In 2009, a record 2.8 million homes faced foreclosure.  That’s over 20 % than 2008 according to RealtyTrac Inc.  But even worse, they expect another record this year for foreclosures

Meanwhile home prices  are down 30 percent  from the peak in mid-2006, and there is mounting evidence they will fall again during the winter.  A big reason is low-priced foreclosures are making up a larger proportion of sales.

What this means is more borrowers  can not be helped forcing them into foreclosure.  The foreclosure properties will flood the market.    The apparent nation’s housing recovery last summer  could soon take a turn for the worse.

The Obama plan had aimed at helping borrowers in financial difficulties by making their payments more affordable. Dropping their payments.

Did you hear that Bank of America and Wells Fargo?

The modifications were suppose to lower interest rate and often a longer repayment period. The monthly payment was to have been cut by $500 on average.   Homeowners would receive temporary modifications and payment releif, which was supposed to become permanent after a trial period.   During this trial period, borrowers would make three payments on time and complete the required paperwork, including proof of income and a letter explaining the reason for their troubles.

However,  only 66,500 borrowers, or 7 percent of the people signed up, have completed the program thru December, according to the Treasury Department.

5 % or another 49,000, have dropped out of the program entirely.  They either missed payments or were found to be ineligible. Thousands more remain in limbo awaiting an answer.

So what went wrong?

There’s blame on both sides: Mortgage companies say they have struggled to get back the necessary paperwork, while homeowners and housing counselors say navigating the bureaucratic maze often seems impossible.

I can attest to the latter.

Look on You Tube or some of my earlier stories.  The Banks are ill-equipped and not capable or worse when dealing with any modification.

Something more drastic needs to be done with the Lenders.

More in my next article.

What have you experienced or found out?

J Michael Seely

With today’s economic crisis we are seeing record highs of foreclosures on the market. If you are in this situation there is probably a million questions running through your head.

Probably the most important, and most frequently asked, is how it will affect your credit. Of course a foreclosure on your credit history will be detrimental.

Natalia Osorio Editor of the “Stop Foreclosure Loans” website — http://www.StopForeclosureLoans.org — pointed out;

“…There really is no disclosed number of points that will be docked from your credit score; however an unofficial number has been rumored to be around 260 points. A good credit score is 700 or higher. An average credit score is around 600. Therefore if you’re current credit score is at 650 you can roughly expect your score to drop to around 390. Even if you have an excellent score of 800 your score will be dropped to around 540 which are still considered to be a negative credit score…”

There are two main reasons that we as a country are currently in this housing crisis. The economic crisis was started by borrowers taking out bad loans, and lenders selling the bad loans to the consumers. Most of these loans included arms which is where the payments were low for the first few years. After the first few years the payments would skyrocket. Lenders would sell these loans to consumers by telling them that they would be able to sell their homes or refinance their homes when their payments increased. Other bad loans included variable interest rates. This again would give a good introductory interest rate, and then the interest rate would increase exponentially after the first few years making payments impossible for the home owners.

This started a domino effect which eventually leads us to record breaking unemployment rates. Because there were millions of these types of loans all at the same time it forced many home owners to go into foreclosure. This affected many industries including banking and real estate. It then got difficult for these consumers to afford or finance anything which then hurt other industries such as automotive and furniture.

“…If you are in this situation there are a few things you can do to stop foreclosure. There are many foreclosure assistance companies that can help you go through your bills, consolidate your debts, and negotiate with your mortgage lender to get your monthly payments down to something you can afford. You can also contact your mortgage company immediately and try to work out a loan modification. You should also research options such as short sales, a deed in lieu, or cash for keys…” N. Osorio added.

Further information about how to get professional assistance with a mortgage loan modification by http://www.StopForeclosureLoans.org

Hector Milla runs his corporate website at http://www.OpsRegs.com where you can see all his articles and press releases.

Article Source:http://www.articlesbase.com/mortgage-articles/how-does-a-foreclosure-affect-your-credit-1786824.html

Millions of people are able to save a lot of money through new mortgage refinance options from Obamas “Making Home Affordable” plan. Millions of people are eligible to use this housing stimulus plan for themselves. Here is what people need to do to take advantage of this plan and start saving money.

Many people are facing financial hardships that make it hard, or impossible, to pay their home loan every month. This program is designed to lower peoples monthly mortgage payments, save them money, and prevent their home from being lost to foreclosure or default. Homeowners can use this housing stimulus plan and get a mortgage refinancing that will provide them with low interest rates, no closing costs, and money savings.

Homeowners are able to get help because of over $75 billion in funding that is being used to assist struggling homeowners. This money enables mortgage lenders and banks to take more risks and approve more homeowners in more bad situations than ever before. This money acts as an insurance policy of sorts because it is given every time the lender or bank helps a struggling homeowner. Without this incentive money, people would have a very hard time getting approved for a mortgage refinancing.

There has never been this much help available for nearly any homeowner. Do not lose your home to foreclosure or mortgage default and do not pay more than you need to every month. Get a mortgage refinance with Obamas housing program and secure your homes future. Contact mortgage lenders and banks today and see what options exist for you because of the stimulus plan.

I have been underwriting mortgages for years. Recently, I got into a new business but I still wish to share my advice, tips, and industry inside happenings of the mortgage refinancing industry.
For more articles on Mortgage Refinance check out my website

Article Source:http://www.articlesbase.com/mortgage-articles/how-to-get-a-home-mortgage-refinance-with-obamas-stimulus-1782267.html

Many people have questions about foreclosures these days.

One of the many questions being tossed about is if a home is foreclosed on in my neighborhood does it lower the value of the surrounding homes. The answer here is a resounding yes.

Hector Milla Editor of the “Best Mortgage Loan Modification” website — http://www.BestMortgageLoanModification.net — pointed out;

“…Property values are based upon a numerous factors. One of the most important factors in determining a property’s value is recent sales statistics. Appraisers, to determine an average price for a home in a neighborhood, use recent sales statistics as a yardstick to measure all the remaining factors…”

To determine a home’s present worth appraisers find three comparable homes that have recently been sold in a neighborhood. They must use this average price as a gauge to determine the value of all other comparable properties in the same neighborhood. After the average price is determined the appraiser looks at other factors to determine the property’s exact value. A home’s value usually cannot exceed the average value determined by the last 3 comparable sales in the neighborhood.

For example, house A, a 3-bedroom home in a neighborhood recently sold for $100,000. A comparable home across the street, house B, sold for $115,000. A third home, house C, comparable to A and B, sold for $107,000. The median price for a comparable home in this neighborhood would be roughly $107,000.

When a home in the neighborhood is foreclosed upon the recent sales statistics will reflect the price paid for the home at the foreclosure auction. This, sometimes drastically, lower price effects the average home price in the neighborhood and as with valuation system based on averages, drives the average home price in the neighborhood lower. The result of a lower average median price is that all the remaining homes in the neighborhood lose value.

For example, house A, a 3-bedroom home in a neighborhood recently sold for $100,000. A comparable home across the street, house B, sold for $115,000. A third home, house C, comparable to A, B, was foreclosed upon, and the price at the auction sale was $75,000. The median price for a comparable home in this neighborhood would be roughly $96,000.

“…Every home in the neighborhood with the foreclosed property would be worth $17,000 less than if there was not a foreclosure in the neighborhood. This decrease in value for the entire neighborhood will not change until the sales prices for comparable properties increases…” H. Milla added.

Further information about how to get professional assistance with a mortgage loan modification by visiting; http://www.BestMortgageLoanModification.net

Hector Milla runs his corporate website at http://www.OpsRegs.com where you can see all his articles and press releases.

Article Source:http://www.articlesbase.com/mortgage-articles/does-a-foreclosure-on-a-house-lower-the-value-of-other-houses-1777241.html

Millions of homeowners can now get approved for a mortgage refinance with 2% interest rates thanks to President Obamas stimulus plan. This is easy to do and designed to help homeowners in nearly any financial situation. Here is how homeowners can easily use this stimulus program and get a 2% mortgage refinance for themselves with President Obamas stimulus.

This program gives cash incentives to mortgage lenders and banks every time they help a homeowner with a mortgage refinance or modification and follow the Obama stimulus plan guidelines. This means that not only are mortgage lenders and banks able to help more people than ever before, they are also happy to. The money they get allows them to take on more risks and take on more people in worse financial situations than ever before.

This money is the reason that mortgage refinancing or modification can be extremely beneficial right now. To get the money, the plan must be followed. Some of the benefits include low interest rates, the ability to get approved if the homeowner has bad credit or an upside down mortgage, and really easy to qualify for requirements. Millions of people can easily save hundreds of dollars per month by using Obamas plan for themselves and prevent their homes from being lost.

Homeowners need to contact their mortgage lender or bank and see if they are able to provide Obamas stimulus plan options for you. This program will help millions of people get a more affordable monthly home loan and save a lot of money. Take action now before things get worse, or more expensive and harder to qualify for.

I have been underwriting mortgages for years. Recently, I got into a new business but I still wish to share my advice, tips, and industry inside happenings of the mortgage refinancing industry.
For more articles on Mortgage Refinance check out my website

Article Source:http://www.articlesbase.com/mortgage-articles/how-to-get-2-interest-rates-by-mortgage-refinancing-or-modification-with-obamas-stimulus-1771755.html