I would rather live my life as if there is a God, and die to find out there isn’t, than live my life as if there isn’t, and die to find out there is!

Monday, October 6, 2008

Will the Bailout help those facing foreclosure?

Not much.

I spent over 35 years in the mortgage lending industry. There is no way to spend that amount of time without learning a little bit. I know a bit about mortgages, and a bit about the secondary market for mortgages, and a bit about macro- economics (which, by the way I also studied in college).

The truth is that the bailout is a bailout for financial institutions, not for homeowners. I am not saying there will not be a small amount of benefit flow down to homeowners in trouble, but it won’t be much. The bailout is designed to capital (and perhaps some confidence) back to the financial markets. The experts seem to agree that neither the programs in existence or the bailout will be much help for those a risk of losing their homes.

What that means for homeowners facing foreclosure is that there is really no help for them, short of what they do for themselves. The bill passed and signed by the president last week contains language that requires the Treasury Department to develop a plan to mitigate foreclosures. Knowing the speed at which the bureaucrats move renders this requirement impotent. It will be months if not years before any real help flows to homeowners who are in trouble on their mortgages. By the time it actually happens thousands more homeowners will lose their homes. Since 2007 over 900,000 foreclosures have taken place. In the first eight months of this year, more than 180,000 were foreclosed on in California alone. More than 2 million mortgage loans are past due 2 or more payments. These are all potential foreclosures.

What then should a homeowner in trouble on their mortgage do?

Well, they can try calling their mortgage lender and attempt mitigation on their own. It is a very rare instance when this works. The problem is that it is next to impossible to reach the right person at the lender/servicer… a person who has the authority to actually modify the loan. Most of the time homeowners end up on the phone with a collector who represents the best interests of the lender/servicer, not the best interests of the homeowner. The average homeowner is not equipped to deal with this, especially under the pressure of a pending foreclosure.

The homeowner needs professional help. They need someone to negotiate a modification on their behalf. A professional who knows the in and outs of the mortgage industry. Professionals who know how to reach the decision-maker and know what to say to get a modification approved that works for both homeowner and the lender/servicer.

I am a Certified Loss Mitigation Consultant and may be able to help. My only goal is always to achieve a loan modification the will allow the homeowner to keep and live in their home. I am not an investor looking for a deal on their home. I am not a real estate agent looking for a "short sale" listing. I just want to help the homeowner save their home.

My bet is that everyone who reads this knows someone who can benefit from my services. I don’t charge any "up front" fees and will only take those cases that I firmly believe I can be of help. I don’t want to get in the way, so if I can’t help I will tell them immediately.

So… If you know someone who I might be able to help, have him or her get a hold of me.

They can call be direct at 800-704-2407 or 530-888-8877
They can visit my Foreclosure Prevention site: HTTP://EEZURL.COM/?PIVE
They can call: 800-366-1375 ext. 6800 for a 24/7 recorded message

Have them contact me in some manner. You will be doing them a huge favor and you may be helping them save their home.


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