Mortgage Relief Program Qualifications: Manage Your Mortgage and Debts

July 18th, 2011 | Posted in Debt Relief

A lot of people believe that the government will come up with an answer to a problem just when we need it the most. President Obama’s administration acted immediately to help the massive consumer debt problem. However, many people are wondering how the government debt relief program will help financial strapped individuals manage their mortgage and personal debts. The debt relief government grants are often the last recourse for individuals that are preparing to file for bankruptcy.

Our firm’s analysis of the work-flow processes of the Servicers clearly demonstrates “large service and technology gaps” that explains why only a very small percentage of homeowners have actually benefited from loan modifications. In fact, the Amherst Securities Group recently released figures showing that 80% of all nonperforming private-label mortgages have not been modified after 12 months and as of Sept. 30, 2010, that the Fannie Mae servicers had completed only 321,800 modifications including 158,800 restructurings that meet Home Affordable Modification Program (HAMP) specifications out of nearly two million note holders believed to be eligible for loan work-outs.

Once purchasing the loan, the investment group secures you with a new loan at the current market value, reducing the principal on your mortgage and eliminating negative equity. The investors are able to purchase the loan at twenty to thirty cents on the dollar, enabling them to reduce your loan value while still profiting from the transaction themselves.

Of course, the recent scrutiny of Servicer foreclosure practices is further exposing Servicer inadequacies; clearly, the sheer volume of delinquent homeowners has put intense pressure on Servicers, including their loan workout efforts. With the John Burns Real Estate Consulting firm estimating that the “shadow inventory” of homes is headed towards 4.7 million foreclosures, it is obvious that Servicers must drastically overhaul their work-flow processes in order to have a fighting chance at creating some head winds against the growing momentum of REO inventories.

The government assistance programs have not been able to reach everyone that needs help managing their mortgage and debts. However, they have provided aid to millions of individuals that have been able to stay in their homes and improve their credit rating.Take a few moments to consider how you will benefit by getting the government debt relief assistance. You can use your the funds to lower your liabilities to a point where eventually you will able to become debt free and start a new life. That is what the government grant program was made for.

Learn more about Obama Mortgage Relief Plan Qualifications.