STOPPING FORECLOSURE - WHAT REALLY WORKS?

There are just 2 workable ways to stop the foreclosure process:

Choice #1: Negotiate a loan modification with your lender – (Good Luck!)

Loan modification – and just how rare it is - has become the hottest housing topic since home values began their freefall in 2007. Economists realized early that once prices began to fall, millions of homeowners would soon be ‘upside-down’ on their mortgages – meaning they owed more than their homes were worth. The only way widespread economic fallout from the housing crash could be minimized would be to modify millions of mortgages to make them more affordable.

With this goal in mind, Washington allocated $75 billion to fund an incentive program to encourage lenders to modify 5 million mortgages. (This allocation was in addition to the hundreds of billions of taxpayer dollars spent to bail out the largest mortgage lenders.) Under this program, lenders would receive $1,000 for each loan modification and an additional $1,000 for each of the first 3 years of the modified loan’s term.

So what happened? Very little. In the first 6 months of the program, banks have offered modifications to little more 200,000 of the 7 million homeowners at risk. Virtually none of those offers modified the mortgage principal – the most important factor in mortgage affordability.

Unable to get your lender to modify your mortgage? Fill out our free personal debt analysis form and find out for free if a DebtStoppers plan is a better plan for you.