Who Needs A Mortgage Modification?

Mortgage modifications save homes.  They allow honest, hard working families to keep their houses.

The foreclosure crisis is all around us. Too many families are losing their homes because they can’t afford to keep making the payments.  These families are struggling primarily because of a couple of different factors: either they have a catastrophic event occur such as the loss of a job or a medical expense that insurance doesn’t completely cover; or they can’t refinance their variable mortgage because the banks have stopped lending money and there’s no equity in the house.

Consider the plight of Ms. A. At age 75 she was conned into refinancing her home to pay off a couple of credit cards.  She is living on a fixed income and now that the adjustable rate on her mortgage has raised her payments from $500 a month (interest only) to $1500 a month, she can’t make the payments.  And she can’t refinance because the loan company that assured her she would be able to do so, is refusing.  Her house has declined in value and neither the equity she has nor her retirement income can justify anyone lending her money.  She needs a loan modification.

Or consider Mr. and Mrs. L.  They had a thriving business, cleaning office buildings.  So, they bought their dream house, having plenty of saved money for the down payment and enough steady income to easily make the monthly payment.  But the business is now failing due to the economy, and the house isn’t worth what they paid for it, or even what they owe against it.  They need a loan modification.

Finally, consider the plight of Mr. and Mrs. G.  He just got word that the factory he has worked for the past twenty years is closing and his 6 digit supervisor position is a thing of the past. Oh, he’ll get unemployment insurance for a while but that won’t replace his salary and won’t cover the household expenses.  And the housing market is such that his house, which he has lived in for 15 years, making every payment, isn’t worth the money he owes against it. This family needs a modification.

Waiting for the banks and loan companies to help isn’t working.  We need a judge to mediate the process and help lenders and home owners reach a compromise that will allow mortgage companies to get paid and families to keep their homes.