Loan modifications are failing fast

Recent reports have shown that low percentages of people that have entered into loan modifications under HAMP have successfully managed to get past the probationary period, and that up to 75% of those that have obtained permanent loan modifications under the program have dropped out.

There are many factors at play here, but the primary one is that people will not continue to make payments on a house that is worth significantly less than they owe. We can all agree that loose underwriting standards, and exotic loans that are now frowned upon, have contributed heavily to the price accelerations that we witnessed during the period from 2002 through 2006. By making cheap and easy money available to almost everyone, without considering whether borrowers had the capacity to repay their debts created a huge demand for housing, which caused prices skyrocket, even in markets that have been relatively consistent over the years.

Unfortunately, it appears that there will be downward pressure on housing prices for the next few years, as additional homes enter the market through short sales and lender REO portfolios.

Thankfully, rates have remained low, and for qualified borrowers that have good equity, and for those who are looking to buy who can bring sufficent cash to purchase transactions to establish equity, it is a good time to consider their financing options. Trusted mortgage professionals can answer your questions, and can give you guidance regarding the financing options that are available to you.

I have access to FHA and conventional financing and can lend in 17 states. Please feel free to contact me to discuss your options and to get your loan in process. My contact information is below.

Kristi Kertin
888/627-2002

Where will housing values go?

With all that has gone on over the last couple of years, it is becoming a great time to purchase a property, or refinance your existing mortgage.

In the real estate market, I would expect that we will see an increase in supply with the expiration the tax credits for homebuyers (which caused a short-term spike in demand), and in increase in the numbers of homes that are being released into the market by lenders that have foreclosed properties on their books. With declining numbers of showings, and increased competiton/supply, some of which will be from "distressed" properties, sellers will be inclined to consider lower offers to get their properties sold.

This is occurring at a time when mortgage rates are low. While qualifying for a mortgage has become more difficult, stable rates are available for qualified borrowers with reliable incomes, good credit scores, and the ability to bring cash into the equation.

Refinances are also an attractive option now, with fixed and adjustable products available at very attractive rates.

Protect Your Financial Information

As we all know, protecting our personal financial information is important, and identity thieves are always on the lookout for names, social security numbers, bank account numbers and the like. Because of the increasing complexity of firewalls and other data protection software at banks, insurance companies, and other traditional repositories of financial information, identity thieves are increasingly turning the hacking efforts to other less-secure spots, like restaurants, retail outlets and social networking sites.

You just can't be too cautious in your handling of your financial information, and we should all be vigilant about not divulging that information to others over the phone, through emails, or in other communications. One way to ensure that your information is safe is to place a credit freeze on your account through the three credit repositories, and/or to obtain and review your credit report on a regular basis. The website www.annualcreditreport.com will allow you to obtain a free credit report from each Equifax, TransUnion and Experian every twelve months. If you stagger your requests so that you request a report from one of the bureaus every four months, you will have up-to-date information all year long. If there are any discrepancies on your report, address them immediately.

Maintaining a strong credit profile will enable you to obtain the best rates for mortgages, car loans, and other financial products.

If you need help refinancing your mortgage, please feel free to contact me at 888/627-2002 at any time.