Interest rates are at historic lows. Many currently active loans were written at MUCH higher rates than are currently available. Refinancing can save hundreds of dollars each month. For many, it can even mean the difference between staying in their dream home or being foreclosed upon.
Everywhere you turn you hear warnings about loan modification scams. Or worse, about someone that just got ripped off! The news is full of negative reports. C.A.R. (California Association of Realtors®) has recently published another advisory ($click here to read it) warning against the unscrupulous.
Recently Freddie Mac was accused of betting against itself ($read more here)! HARP, HAFA, and other government programs have tried to help. It seems like each lender has tried something of their own making. Many homes are under water (meaning their value is less than the amount of the loans against them). The feds stepped in with the 115% loans, then the 125%. We heard today that the limits will be raised to 150% in February, and possibly removed altogether later.
An article came across my desk today aimed at helping home owners manage their own loan modifications ($read here). It’s enough to scare off most, and it’s just one of many parts! And, of course, while you are doing all this you must also make a living.
Sooooo….back to the original question: Where does one turn? While there may be some good companies out there specializing in loan modifications we are generally dubious. We are uncomfortable with the idea of using someone’s bad situation to our advantage. Yes, as a business costs must be met, but profits should come from somewhere else.
That is why we have establish a team within our group for that purpose. We can help clients without having to profit. We believe we will receive our benefits by helping others and making clients that will come to us when things are better. Everyone wins!
How does this effect you? Do you have questions about YOUR best action? Contact us today for your free, no obligation consultation.
For ALL your real estate related needs and/or questions call ((530 315-2808) or visit us8 on line at EncoreRES.com or any of the links below.
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