Mortgage Rate Update Ending 08/19/09
August 26, 2009
Bankrate.com conducts a weekly national survey on the interest rates for the five most common consumer banking products. Here’s this week’s outcome:
- 30 Year Fixed Rate: 5.52 percent
- 30 Year Fixed Rate Jumbo: 6.44 percent
- 15 Year Fixed Rate: 4.84 percent
- 5/1 ARM (Adjustable): 4.86 percent
- 1 Year ARM (Adjustable): 5.19 percent
Mortgage applications were higher for the week for new purchases and resale. Refinancing activity also rose, according to the Mortgage Bankers Association.
According to RealtyTrac, foreclosure activity was up 7 percent during July. One in every 355 U.S. housing units received a foreclosure notice during the month.
Why Getting a Loan Modification May Not be a Speedy Process
August 12, 2009
A great new article was just written from CNNMoney explaining some of the reasons why troubled homeowners are not getting mortgage modifications. Many of you will find the items discussed below to be absurd and ridiculous. These are some of the pitfalls we face everyday, here at Loan Mitigation Advocates, when trying to help our clients get a loan modification granted by the lender.
The top Five Reasons for why the loan modification process is slow are a byproduct of the lenders’ inability to get ahead of the shear volume of loan modification requests. Essentially, they are always playing catch up and here are 5 reasons adding to this deficiency (see the more defined list at CNNMoney):
#1 – The Fax Machine
Everything from lost pages to warped pages to no acknowledgement that the fax has been received to incorrect fax numbers.
#2 – Multiple Forms
Seemingly endless amounts of documentation are required for a loan modification. To compound the issue, each lender has its own set of requirements and each borrower’s situation is different which demands a different set of requirements.
#3 – Outdated Information
The time it takes to process a loan modification could be weeks to months. Information gets outdated and lenders want to make sure that your situation does not change during the time they are considering granting you a loan modification. In many instances, they will ask for updated information two or three times (i.e., pay stubs, bank statements, etc.)
#4 – Poorly Trained Personnel
I can tell you first hand that there are some people working for the lenders that are rude and unable to assist. Most of the time, these individuals do not acknowledge receipt of the initial loan modification packet and if you are calling to obtain a status, they have no history of where the loan modification is in the process. You would assume that all individuals working in the loan modification department would be able to obtain a current status on a borrower’s file. Not the Read more
Everyday, struggling homeowners call foreclosure and loan mitigation hotlines for help on how to save their homes. This is just a small sample of a larger problem. Foreclosures, short sales, adjustable mortgages, and financial or personal hardship have wreaked havoc in the marketplace. The need for loan mitigation is paramount.
At Loan Mitigation Advocatessm, we encourage homeowners to try and resolve their situation themselves. In many cases, the homeowner realizes the complexity of the situation and that they do not have the time, connections within the lending industry or negotiation power. This is where many homeowners turn to a loan mitigation advocate. The hiring of a specialist to handle the process from start to finish can ease an already stressed situation, reaping benefits long into the future, and most importantly, help you, the homeowner, stay in your home.
CORPORATE BROKER’S LICENSE #01858172