The federal bail out monies either spent or earmarked to be spent is now at $2.2 trillion dollars. By no means is this the end. The actual final number under the current "plan" will result in a number closer to $4.4 trillion over the next 2 years.
And like a speeding bullet train that has left the station not one single taxpaying citizen will see one nickel to reduce their individual debt on a current mortgage. The bailout program is moving so fast that it has already passed the reason for which it was established and there is simply no reason to go back and pick up stragglers. It has finally been revealed that the initial concept of bailing out individual homeowners is impossible under the current model of mortgage companies.
Over the past 5 years the traditional model of mortgage companies, financial institutions and banks lending monies for mortgages has changed. Gone are the days where a lender holds the mortgage for 30 years. Mortgages have been packaged into securities and sold as investment opportunities.
Adjusting the mortgages of individual borrowers would result in a lose of billions to Americans that have money invested through pension funds, insurance funds, 401k's, just about every single investment that middle income Americans have invested in via combined group managed portfolios. In essence bailing out American borrowers would result in larger financial loses to the people the bailout is suppose to help. They may have affordable mortgages but all other savings would be wiped out.
The real sham is that those in side line regulatory control have laid out plans for lenders and mortgage servicers to follow in assisting borrowers correct mortgages. These guidelines are designed to put lipstick on a pig and give the appearance that something is being done.
The proof in the pudding is that anyone who has tried to work with their lender has met a room of mirrors that cannot be negotiated.
Analysts' were shocked to see that in November the total number of mortgages 60 days late had risen 60%. Excuse me but the guidelines say that until a borrower is 60 to 90 days late nothing can be done. It will be interesting to see how many Americans choose to celebrate Christmas instead of pay their mortgage. That one may not be apparent until January mortgages are due.
It has now become apparent that modifying your mortgage is up to you and no federal program with any substance will emerge.
From the hundreds of mortgages that I have attempted to do the only successful ones have been done as new FHA loans with a demand for a short pay off or in the old days (last year) referred to as a write down. The other group is being done with the assistance of attorneys. You simply need the letter head from a legal firm to get your lenders attention. Yes modifications are being done without the assistance of attorneys but the speed of the process with an attorney is so much quicker.
Hardly anyone in Nevada realizes that to participate in the loan modification process requires a special license issued by the mortgage lending division. And even with the license a $100,000 bond must be posted. The exception is if the modifier is a Nevada attorney.
Countrywide promised everyone with a pay option arms that they would present them a program on Dec 1. It seems that all they did was buy an extra 45 days as Dec 1 came and went and as far as I know nothing was sent out to anyone.
Modifications can be done but it does require knowledge and expertise. Every day the ranks of modifiers swell as lenders and realtors jump on board.
The correct average cost is around $2,500. Any less and they can't really afford to do it. Any more and most likely your being over charged. By law a modifier that is not an attorney can collect no monies up front. A fee can only be charged once the loan is modified.
For more information on the correct way to modify loans or if you are interested in becoming a loan modifier please call me or e mail. I've been working on this for the past 4 months and feel that I now have the answers.
