Obama’s FDIC Plan Hurts Homeowners who Need Help
Obama’s FDIC Plan Hurts Homeowners who Need Help
Yes, you read that right…Obama’s FDIC plan will end up hurting homeowners who need help. Why do I say that? Allow me to give you some insight.
A week ago last Tuesday March 4th, the Obama FDIC Financial Stability Plan was released to the public. Those who work in the real estate industry (well actually those who work in loss mitigation, a fancy word for collection or workout department) received special FDIC software and training about a month ago. Guess what? Many of the companies who service loans (collect the monthly payments) say the software doesn’t work. Yes, you read that right…the software doesn’t work.
Anyone who has followed my articles and blog posts for any length of time know that I am an advocate of helping people save their home through a loan modification or protect their credit by selling their home through a short sale.
Either way, I am not a fan of “walking away” as it leaves too much intentional liability on the homeowner, regardless of what pundits or gurus have to say. The “F-Word” or foreclosure on your credit history is a public record item and has devastating effects. A foreclosure record on your credit report will be the gift that keeps on giving for years to come for at least 10 years. Not only will the foreclosure affect your future ability to obtain credit, as you will be asked if you had a foreclosure in the past, it may also affect your ability to obtain employment or insurance.
So, back to why I believe the Obama FDI Plan will hurt homeowners. The foreclosure prevention techniques (others call them loss mitigation tools), remedies and resources that we have used in the past are still available today. That’s right, they are available now. As you read my comments above, there is simply no reason to lose your home to foreclosure even if you don’t qualify for the assistance under the FDIC plan.
As I read through the FDIC plan, hoping to find new ways to assist the worried homeowners who call me, I became thoroughly disenchanted by how restrictive the plan really is. Yes, the mainstream media and press publishers all made the plan to be the next greatest thing since sliced tranches, I mean bread.
OK, why are there problems with a supposed plan to help homeowners? The issue lies within the analysis software the financial gurus at FDIC put together. The software only provides for two possible outcomes to a homeowners situation, therefore based on information given by you it is entered into the software to review your case. Based on this homeowner supplied information you will be given either an A or an F, or you will be either approved or denied by the computer program.
There are no B, C, or D grades here, there is nothing in between and there is nothing that can be manually changed to override the computer decision, which is final.
Does this mean there are no other alternatives for the weary homeowner who needs help? Of course NOT, while the Obama FDIC Plan may be riddled with holes and severely limit the help it intended to provide, I offer up these words of encouragement.
Do NOT attempt to resolve a Loan Modification on your own, as our government and media would suggest. I will help you pre-qualify and re-qualify for a loan modification, should you be initially turned down. Thats right, sometimes it takes a few NO’s to get a resounding YES. I can help you through the paperwork and hurdles.
The Loan Modification process that I work through is backed by attorneys who know real estate law and can assist you in getting the best deal. Yes, you will PAY for this service, however think of the alternative, How much will it cost you to move?
Indeed, you will have to pay eventually and if you need helping in changing the terms of your loan down a 5%, 4%, 3% or lower fixed rate for 30 years or longer, depending on your situation, these are some of the best modification terms on the market today. Will you get these low terms? I can’t tell you that you will, but we will certainly put together the best case to HELP YOU keep your home and make the monthly payments affordable now and in the future.
Do Not go at your Loan Modification process by yourself. Do not call your Lender and attempt to modifiy on your own as your lender does not CARE about you or situation, all they want to do is KEEP the most money they can and LOSE the lowest amount they can. Your lender is NOT your friend, even though they will make you seem like they are at times, they want your money and rightfully so, you signed a note saying you would pay them back, so they want what is rightfully theirs, however do not approach them without a team behind you.
If you want a LOWER Interest Rate or a Lower monthly them, then a Loan Modification is right for you and I encourge you to contact me today since time is NOT on your side. Time is against you if you are facing an increase to your monthly payments, are facing foreclosure or if your financial situation has changed and your current mortgage payment is no longer affordable.
If you can no longer KEEP the home, I would recommend calling me to help you SELL your home, even if you have NO Equity or Owe more than the home is worth. Selling your home through a short sale will help you protect your credit in the future and allow you to buy a home again within as little as two years, or less depending on your circumstances.
Contact me today by calling any time 760-344-5363 or 619-241-4415.
California loan modification, California short sale, Foreclosure solutions, Loan Modification, Short Sale