Indications are that the pace of foreclosures across the nation should be slowing in the not too distant future - some say before this year, 2009, is ended.
The recent actions of JP Morgan-Chase and Citigroup, to impose moratoriums on home foreclosures, is a cause for hopeful anticipating by homeowners , facing mortgage issues, nationwide. The hope is that other banks will follow the lead of these two and likewise institute moratoriums, if even with some nudging from the federal government.
With some 10,000 families a day, according to some estimates, losing their homes; and with only $50 billion slated to buy up those troubled mortgage-backed securities, it is yet to be determined if the hopes of homeowners are justified, albeit the promises of the President.
What happens when the moratorium ends - what will the banks want, what will they be demanding - how severe will be their guidelines for restructuring and modifying the mortgage loan.
Job security, the uncertainty of continued employment, limited and dwindling financial resources are serious concerns of homeowners, and are not helpful when applying for mortgage loan modifications. This is crushing to the hopes of the homeowner. Staying in their homes is priority number one. Homeowners are encouraged to immediately seek mortgage loan modification at the earliest indication that there may be some future negataive impact on their income or financial assets. Banks are more inclined to work with homeowners who have good prospects, and who could demonstrate the ability to eventually pay off their mortgage. This, then, is the best way forward.
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