How A Loan Modification San Diego Homeowners Program Can Be Used During A Foreclosure Crisis
The current foreclosure crisis shows that foreclosure filings are up 35 percent nationwide compared to a year ago, based on Realty Trac reports on filings. “This crisis was triggered by foreclosures, and a lot of those were in a very small number of areas,” says William Lucy, a University of Virginia professor. A large majority of theses California foreclsoures could have benefited from a loan modification San Diego program on their loan, making it more affordable.
There are 35 counties leading the foreclosure boom and they are in Detroit, Cleveland, Southern California, Las Vegas, Phoenix, South Florida and Washington.
The eight largest counties are in Arizona, California, Florida and Nevada. These eight counties were the source of about a quarter of the nation’s foreclosures last year
The worst-hit counties are home to about 20% of U.S. households, but accounted for just over 50% of the nation’s foreclosure actions last year.
Top 10 Foreclosure Cities
Las Vegas, NV
Miami, FL
Chicago, IL
Phoenix, AZ
Los Angeles, CA
Sacramento, CA
Cape Coral, FL
Orlando, FL
Foreclosures are devastating communities across the United States, and the impact may only worsen as more subprime adjustable mortgages reset during the next few months. More trouble is on its way and possibly more help-
“The Help Now” Proposal
The government has a plan under proposal to allocate $20 Billion in tax payer funds to buy up mortgages through reverse -auctions. The reverse auction is a process where the govermenr would purchase mortgages from the investors who own them. the main idea is that the goverment would be buying these mortgages in bulk at around a 30% discount. An example of this would be if the goverment would pay $140,000 for a $200,000 mortqage. The savings would be passed on to the homeowner.
This would allow the Government to perform a loan modification San Diego homeowners program on California distressed homeowners loan by reducing the principal balance of the mortgage loan. By reducing the loan, this would also lower the homeowners monthly payments.
Borrowers, would have to qualify under this new program based on their credit scores, income, capability of making payments and additional underwriting criteria.
For those borrowers who cannot afford the new discounted loan modification San Diego homeowners modification on their home. The government may reduce the principal balance even more by carrying back a second trust deed on the property. The second loan would be paid off when the home is refinanced or sold in the future.
The program is gaining support and it could be just a matter of time befor the Treasury Secretary, Hank Paulson, and the Obama Administration put the loan modification program in place
