Mortgage Mess Affects San Diego Loan Modifications
California Mortgage Mess
The current mortgage mess will lead to more bank failures, more foreclosures and a need for loan modification San Diego homeowners programs to curtail the problems homeowners are facing in this real estate market.
Interesting facts- Mortgage finance giant Freddie Mac(Federal Home Loan Mortgage Corporation) which was founded in 1970. Fannie Mae (Federal National Mortgage Association), the 2 government-sponsored enterprises owned or guaranteed $5.3 trillion of mortgages (out of $10.5 trillion nationwide) as of 12/31/08. Freddie Mac lost more money during the 2 years of 2007-08 (a $53 billion loss) than it made during the 36 years from
1971-2006
($42 billion of profits) (source: USA Today, Wall Street Journal and Federal Reserve).
$2 trillion of mortgages were packaged together into bonds and sold to investors, i.e.,
they were securitized (source: Inside Mortgage Finance, Wall Street
And now the tax payers are paying the price. Homeowners who were sold these toxic loans are paying the price with higher payments, facing default and foreclosure. Those who have taken action to prevent them selves from going into foreclosure have done so by negotiating a loan modification San Diego program on their mortgage loan.
If your lender is unwilling to re-negotiate your mortgage loan than you may have to hire a professional to negotiate for you. If, this is not an option you could consider a “Short Sale” on your home. A Short Sale will still be negative on your credit but it is not as bad as a foreclosure. And as a last result you could turn over the keys to the lender and do what is called a “Deed In Lieu” of foreclosure. If you go this option you should hire an attorney to protect your legal rights. If you go the route of a loan modification be prepared before you attemp a loan modification so you can negotiate a loan modification San Diego program that will make the most sense today and down the road.
What ever you decide to do take action and don’t wait for the problem to go a way, because it will not.
