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
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