There is some good news in the world of loan modifications such as Bank of America the biggest recipient of TARP funds is now planning on reducing principle balances on some of its loans for its clients. Supposedly they plan on reducing up to
0 percent of the loan balance.
Not to mention Wells Fargo has over half a million of loans currently in trial loan modificatios as to how many of those loans actually become permanent loan modifications is really anyone’s guess.
Many of the Santa Maria homes for sale are in fact due to loans that could not be modified for one reason or another. But the sad reality is that sometimes getting or trying to get a loan modification may not always be a good thing and some times it just leaves the homeowner off worse than when they started.
The problem seems to start with those trial modifications that most people end up paying for 3 months or even 6 months with the assumption that they become permanent if they can make the payments. Most homeowners are finding themselves that after making the payment that they are still foreclosed on and they find their home joining the ranks of the Santa Maria homes for sale. The problem here is that most of the banks are just not willing to handle the masses of the clients that they claim to help regardless of the touchy feely commercials that are being put on the TV ads. To see some stories of those with issues.
Now if you feel like drinking the Kool Aid be my my guest but I find it hard to believe that when all these Big Banks are able to give out record bonuses this year which is something that you can google on your own that out of lets just say 1 million dollars of bonuses that they could not hire anyone or short of an army of people to work on loan mods for 1 million dollars or 2 million dollars that they can just deduct from all those record bonuses to actually help people because you can bet your life that the total of bonuses being dished out are going to add up to more than just 1 million, there is plenty to spare even after deducting a cool million. There are currently tons of ex loan officers as well as underwritters that are looking for work due to the economic times of today’s Real Estate but that would take away from the bonuses.
But here is the sad truth after adding insult to injury if you are a homeowner trying to get a loan modidfication and you are making the payments during your trial period. Even though you are making the payments guess what, they are hurting your credit since they are not the full payment so not only will you lose your home and in the mean time drain your resources and funds even more than they already are but damage your credit even more so along the way. Here is the reality if the bank offers you a trial modification but does not request any kind of documentation from you do not expect to be approved for the modification. Banks will not approve a loan modification without some kind of documentation of income that shows that you can afford the mortgage payment. In fact Wells Fargo even admits that half of those in the trial loan modification period will not be approved and will drop out check out their press release. Even though Bank of America has doe over 33,000 permanent loan modifications as of April 2010, that is still a far cry of the total number of loan modifications that can be done or may be elgible for a loan modification.
Fact is if you are someone that has lost their job and you are scrimping and saving and burning through your savings on the belief that you may be granted a loan modification just because you are making the trial payments you maybe deeply disappointed. Also don’t believe the empty promises of so many scams that are out there promising the world and beware of those that are charging fees for nothing.
As to who is doing loan modifications bank by bank here some info.
If you have any questions about buying a Santa Maria home for sale in the Santa Maria Real Estate market or any properties on the Central Coastand need to get a loan in Santa Maria, CA or any where in the state of California not just on the Central Coast please contact me by sending me an email at: GenePerez@GMSLoans.net
I do also service all the nearby communities and other markets such as the Santa Ynez real estate market, Nipomo Real estate market, Arroyo Grande real estate market, Grover Beach Real Estate Market, and all other surrounding areas regarding the homes on the Central Coast.
my goal is to provide you with resources you need. I can also help in getting the financing for your home. If you have any suggestions or questions in how I can provide more or better
information please let me know. I have been helping my clients for the last 15 years on the Central Coast, Gene Perez – 805-448-7101 , DRE 01321588
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