September 2009 California Foreclosure Report
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The loan modification (IF agreed upon by the homeowner and lender and IF the homeowner can make the new payments in the long term) may be successful in lowering a homeowners mortgage payments but it doesn't address the real problem on negative equity. The fact remains that the homeowner is trapped in his or her home because it can't be sold since FMV is still lower than the loan balance.
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Word today is that out of 500,000 loan mods in progress, only 1,800 have made it out the other end, with the rest either waiting for documentation or still in their trial period. Looks like we'll need to wait to see those HAMP related cancellations or sales.
ForeclosureRadar 2 years ago