Tuesday, April 14, 2009

This is the Best Time for a Home Loan Modification

At last President Obama has announced what anyone and everyone connected to the real estate sector has been requesting for a long time. The new mortgage plan announced by the US government has been welcomed by all analysts and loan modification consultants across the country. The plan is a solid stimulus package created to stem the foreclosures which has been one of the biggest contributors to the collapse of the economy. It addresses the core issues of the real estate sector and helps responsible homeowners out of their precarious mortgage situations.

In fact if all goes as per the plan, it is the homeowners who will be the real winners here. President Obama’s mortgage plan gives special attention to people who either are struggling with their mortgage situations or threatened with a potential foreclosure. The new package sets aside $75 billion for homeowners falling under various categories so that they get the necessary help that is required from their mortgage lenders and have a more favorable mortgage plan.

Both analysts and loan modification consultants agree that now is the best time to apply for a home loan modification. While Obama’s detailed modification plan will not be revealed until March 4th, it is recommended to apply for home loan modification now because the long line of homeowners looking for a modification will be even longer in the future. Homeowners should not waste any time and immediately contact a loan modification consultant to help them apply for a mortgage modification plan with their lenders. The consultants are in a better position to help the homeowners as they will be able to submit the application as per the prescribed norms set by the banks and make sure all necessary documents along with the reasons for loan modification are in place. By going through a company, homeowners will also save themselves from being taken advantage of by their lender.

Homeowners who have been facing problems with their mortgage and have already defaulted on their monthly payments need to act quickly and get their applications submitted immediately as this is the best time that modifications would get approved given the added pressure from the US government on the lenders. Of course it is not just the added pressure, now that the banks and lenders have financial support from the government; they are much more open for home loan modifications as there is less risk for them.

The real estate industry as a whole is extremely optimistic that the new measures announced by President Obama will give the much needed momentum to the already battered industry. Real estate values have been plummeting since 2007 and the same scenario has been continuing in early 2009 as well. The latest stimulus package aims to help restore some value of properties eroded due to foreclosures and lack of new home buyers. Investors who have shied away from the real estate sector for almost a year now are also expected to start coming back although in much lesser numbers than before.

What remains to be seen is whether all the measures announced over the last few days is going to help the economy get back on its knees and at least stay stabilize if not improve. But one thing is for sure, homeowners have to act now as if they let go of this latest opportunity, they might lose their chance to secure some stability with their current situation.

About the Author

Bridget Toomey is a licensed real estate and loan modification consultant in the state of California. Since the economic downturn in early 2007 she has focused her time on assisting homeowners who have home loan modification needs. To know more about her or if you have any questions, please visit www.loanmodificationfoundation.com

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