Since the collapse of the US housing bubble in 2008, many homeowners have faced the trauma of foreclosure. As an alternative, the government created mortgage assistance programs. While the US housing market has been recovering, many homeowners still find themselves in difficult financial positions. Many are on the verge of delinquency, and some still struggling to get mortgage help.
Is an mortgage help soon to be limited or maybe coming to an end? Is it possible lenders may soon limit loan modification, short sale or deed in lieu of foreclosure programs they offer?
In my professional opinion, I believe the next year will be concerning for homeowners and something to watch as the Making Home Affordable Program deadline on December 31, 2016 passes.
I usually write blog articles with helpful guides, tips, resources, and best practices, but I feel more encouraged to share my thoughts and opinions as a way to educate the public. I want my readers to think outside of the media’s prospective and begin questioning everything.
I've learned to question the process like my 4 year old son. He always asks me why even after I answered his questions. Of course continuing to ask why is a bit annoying, especially when you may no longer have an answer, but it does get to the point of understanding the unknown. Everything is new to my 4 year old. Everything is in question.
For many homeowners, isn’t the lenders process similar? Many are left confused, frustrated, or given the run around after talking with several representatives that may not know their left hand from their right.
It’s frustrating to continually listen to homeowners during an application for mortgage assistance expressing concerns about continually submitting documents only to later find out they have been denied or don’t get an outcome they can afford.
See the problem has always been the lenders process for reviewing borrowers. It’s complicated, yet many lenders make it sound like it’s so simple. It’s not.
How many of you have applied for a loan modification, short sale or deed in lieu of foreclosure?
Did the lender tell you it would take 30-60 days to review your application?
For the lucky homeowners, the 30-60 day timeline accomplished results, but many find out it’s much longer. Now that the deadline of government sponsored mortgage assistance programs is getting closer it may limit the outcomes for homeowners. As of the date I published this article, it’s less than 5 months.
I’m troubled and concerned for homeowners that continue to experience these delays. The most concerning is not the delay's not the lack of knowledge about qualifications, and options. Too many homeowners fight to only give up. The F.E.A.R. of a foreclosure sale overcomes their emotions.
I believe lenders will tighten up on their participation got their own in house loan modification, short sale, and deed in lieu programs after the deadline (December 31, 2016). It's unfortunate, but in house program guidelines aren't published and homeowners are left without the ability to study their guidelines.
I can understand a lenders decision to hold back guidelines from the public. When you apply for a mortgage loan, you aren't given the complete guidelines from the lender. You work with a professional that is licensed to origination the loan for the lender and is educated about their process from start to finish. You don't get that professionalism from lenders. You get pieces of the puzzle with any clear direction of how to put it all together.
When MHA was created, the US Treasury committed up to $45.6 Billion to help homeowners avoid foreclosure under TARP. It would make sense that the government’s financial incentives to lenders for their participation will end or reduce sometime after the deadline.
Will lender's use their projection for a recovering economy to change the way they consider helping homeowners avoid foreclosure? It's an interesting thought, and one that I've discussed with many professionals in this industry.
You’re probably fighting for mortgage relief. Is your fight effective?
It’s my opinion that if you don’t question everything and aggressively fight for mortgage help, you may soon find yourself trapped with an underwater mortgage loan.
How do you know your lender is telling you the truth about the process? How do you know your getting the right information about the documents you need to submit?
The truth is that you may not be getting the information you need! Even as a professional that focused the last decade of my career in loss mitigation, foreclosure, mortgages, and real estate, I find difficult to gauge the specifics about each process. Many representatives don’t have a clue about the steps ahead, and that has always been a concern of mine.
My advantage is repetition. Can you gain this advantage before it's too late?
One of my teachers once told me that it takes 3,000 to 5,000 repetitions of one movement to make it a natural reaction. For example, as a child, your parents may have continued to tell you to cover your mouth when you cough or cover your nose when you sneeze. Now, you don’t think about covering your mouth or nose. You do it without hesitation.
Completing the process over and over again allows you to be more efficient. It may give you the advantage to plan and project future steps, options, and potential outcomes before they happen. Without experience, you need to question everything to hope to gain an advantage.
As the MHA deadline gets closer, you need to become a frequent researcher and if you're not doing it already, start questioning everything.
I wrote this article to help you think about questioning the process. Don’t be someone that fails to get help before it’s too late. Professional help is available, and as the next year unfolds, be prepared for changes.
I'd love to hear your opinion and thoughts!
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