The president says interest rates are at an all time low and that you should refinance. But you wonder if refinancing will really benefit you.
Well truth is to be told the refinancing plan will be beneficial to the economy as a whole and will benefit the banks but won’t do a thing for the distressed homeowner. Simply because if you are behind on your payments you probably will not qualify for a loan.
By refinancing, the banks benefit by charging you a refinancing fee and they also will receive thousands in additional interest payments. What should occur is more forgiveness to the delinquent homeowner who is truly attempting to correct their situation.
While interest rates are at an all time low, these rates are only good if you can qualify for them. That does not fix the current problem of so many Americans who are facing foreclosure. These same rates should be offered to a homeowner who qualifies for a mortgage modification.
In mortgage modifications what typically happens is the bank creates new perimeters for your existing mortgage but rarely do the adjustments the banks offer really make a difference. Statistics have shown that over 50% of the mortgages that were modified in 2008 ended up in foreclosure anyway. This is primarily due to the modifications not being sufficient for the homeowner to be able to afford them. In fact in many cases while the proposed plans of the bank may help in the short run in the long run they are even more difficult than the original payment obligations.
To really help a mortgage modification has got to be affordable to the homeowner that is in arrears. In many cases these poor adjustments are due to the homeowner not having proper defense when approaching the banks. If you are in arrears and desire a mortgage modification you should give serious thought to hiring a negotiation agency to represent you.
The trick is to find someone who is honest and truly able to help you. If you are needing an agency to represent you to your mortgage company then you should consider the following criteria for finding a good agency.
Avoid an agency that requires a large upfront fee – Some agencies will charge up to $8,500 to negotiate on your behalf. Some agencies will also keep ½ your money if they FAIL TO REACH AN AGREEMENT with the mortgage company. If you could afford to give them half for failing to negotiate you would not need them in the first place.
Do not select an agency that is prone to accepting the first offer from the lender- If the offer the agency procures is not within your budget then you might as well have not negotiated for a modification. It will do you no good to modify your mortgage if you are still not able to make the payments.
Find a company that provides a free consultation by phone – A reputable company will not charge you a deposit until they review your situation and know they can help you. A good reportable agency will use their time wisely and only represent you if they feel confident in their ability to be effective in your particular case.
Find an agency this is endorsed by an attorney – You should find someone who can legally stop the foreclosure.
Use an agency that has a reputation of being able to buy you time -They should be able to freeze your payments up to 6 months, in the case of financial hardship. They should also be able to stop any annoying phone calls you may be receiving from the mortgage company.
Find an agency that designs a plan – that meets your budget and objectives – such as a low rate with a 30 to 40 year fixed term. They will be able to have late payments attached to the back end of your loan.
Find someone who has experience with second mortgages – A good negotiator will be able to reduce or get rid of a 2nd mortgage. You will want someone who will request a principle reduction if you owe more than the loan amount.
So before you hire someone to negotiate with your mortgage company, do some homework. Research an agency and find out what their success rate is, after all you will only get one chance to correct the situation, so be sure to make it the best possible attempt. Do not risk your chances of foreclosure; hire only someone who can truly help you. And to answer our initial question, who does refinancing benefit? Well I feel it is pretty obvious that it does not benefit the homeowner who is faced with foreclosure.
Discover how you can ethically modify your home mortgage loan and save as much as 47% off your current mortgage payment in as little as 60 days without refinancing? For your FREE CD, FREE e-book, and FREE coaching call with Mortgage Modification Expert and Business Man of the Year Billy Alvaro visit our website Saint Jude’s Mortgage Rescue
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About the Author:
Discover how you can ethically modify your home mortgage loan and save as much as 47% off your current mortgage payment in as little as 60 days without refinancing? For your FREE CD, FREE e-book, and FREE coaching call with Mortgage Modification Expert and Business Man of the Year Billy Alvaro visit www.RescuedBySaintJude.com Saint Jude’s Mortgage Rescue
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