schildi
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Post by schildi on Jun 30, 2011 7:53:13 GMT -5
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haapai
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Post by haapai on Jun 30, 2011 8:50:27 GMT -5
How this program would actually function depends a great deal on the region of the country. Around here, it would primarily function as a giveaway to the banks. It would allow them to avoid foreclosing on a home and subsequently selling it a half-price (or worse) for another two years. (In case you're wondering what I mean by half-price, I'm basing those numbers on the state equalized value, not the size of the insane mortgages that I have seen. Yup, things are really bad in my neighborhood.)
I can't see how this program would help unemployed homeowners in my area much. They'd get to stave off the day of reckoning for another two years, but once that time is up they'd have to somehow hold on for another five years before selling and even then they might be underwater.
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midjd
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Post by midjd on Jun 30, 2011 8:55:42 GMT -5
That sounds a lot like HHF, which has had moderate success around here. However, IME the federal home loan modification programs are so bureaucratic and clogged with red tape that they often hurt the process more than help it. Most of the mods I see (probably 50-60%) are the bank's own internal programs, at least with the larger banks.
It is extremely frustrating (for both the borrower and the lender's attorney) to deal with the huge banks, the servicers, AND the federal government. We've made some good changes in my state, but it is a slow process.
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