Guest blogger, Justin Miller tackles a subject that almost everyone seems to be talking about! Last month I participated in three foreclosure prevention seminars in which in addition to short sales and the foreclosure process loan modifications were the hot topic! This month I will again be participating in two foreclosure prevention seminars in Hollywood, and am working on three for the month of February in conjunction with the Hallandale Beach CRA. Read on for some great information, and please don’t hesitate to contact me directly at: 954-862-2631 or by email: ellenbithell@remax.net if I can be of service!
Ellen Bithell, CRS, CREO, SSS (short sale specialist)
p.s. If you are curious about how the Miami Market is doing please check out our market snapshot for up to date information!
 
Can I Receive a Loan Modification?
Here is a chart with the different models for modifications. It gives you the name of the plan, describes it, and then goes into a little more detail. It does mention the “FHA Secure Program” but, unfortunately, FHA eliminated this program on December 31st, 2008. FHA stated that “(m)maintaining the program past the original termination date would have a negative financial impact on the MMI Fund that would have to be offset by either substantial across-the-board single family program premium increases or the suspension of FHA’s single family insurance programs altogether.
A great article in the Wall Street Journal talks about “cram downs” and how they are gathering steam. According to the article: “In a cram-down, a judge modifies a loan, often reducing principal so a borrower can afford it. Lenders hate it because they have to absorb the loss. Bankruptcy judges currently have the ability to modify certain personal loans and even mortgages on vacation homes, but they can not cram-down mortgages on primary residences.”
The article goes on to talk about Obama’s much anticipated foreclosure prevention plans. As I have mentioned time and time again, we need to stop foreclosures to get home values to stabilize. It is not just a matter of supply and demand.
Wall Street Journal subscribers click here for the complete article:
Thanks
Justin Miller
Southeast Regional Manager
Resource Mortgage Group formerly
JB Mortgage & Financial Services LLC
954-227-0211 Office
754-214-7449 Cell
954-227-0214 Fax
499 NW 70th Avenue
Suite 105
Plantation, FL 33317
www.resourcemortgage1.com