Loan Modifications are a Waste Of Time - The Iron Eagle Realty Team

Loan Modifications are a Waste Of Time. I have to laugh every time I go the Making Home Affordable website.

The Iron Eagle Realty Team has been successfully closing short sales for the last three years in the Boise Idaho Real Estate Market. Just like Medicare, Social Security and all the stimulus packages that have been passed, the Home Affordable Modification Program is another example of a government program failing miserably. The sad part about the HAMP program is that it provides false hope to those homeowner who think they have a shot at a loan modification. Overall, the statistics show that the HAMP program has been a miserable failure; less than 10% of homeowners that apply even get to the TEMPORARY modification stage. Why is that you may ask? Because loan servicers are incentivised to either foreclose or short sale by the VERY SAME GOVERNMENT THAT CAME UP WITH HAMP!

I have personally talked to many homeowners who have attempted to obtain a loan modification with their lenders through HAMP and the traditional process. They have all spent months going in circles with numerous "customer service" knuckleheads at the other end of the line only to find out that they either have TOO MUCH MONEY in savings or they don't MAKE ENOUGH MONEY to qualify for a loan modification. What the servicers don't tell you is that the margin of qualification is so ridiculously thin that less than 10% of individuals even qualify. LOAN MODS ARE A MAJOR LEAGUE WASTE OF TIME!

At the end of the process, these homeowners are months behind and guess what; they now have a notice of default recorded on their home. This means they are in foreclosure and the clock is ticking. They have been strung along with the hope of "Making Their Home Affordable"; it's not going to happen!


It really and truly sucks what these people have to go through only to find out they are not approved. Their only choices at that point are short sale, deed in lieu or foreclosure. At this point in the game, short sale is probably the best way to go. The credit hit is much less than foreclosure or deed in lieu and you at least have a chance to negotiate with the lender.

If you are thinking of attempting a loan modification, don't waste your time.

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• Loan
• Modification
• Foreclosure
• boise
• idaho
• real
• estate
• short
• sale
• avoid
• foreclosure