Obama Foreclosure Help Not for Everyone

March 3, 2011 - PRLog -- We Buy Houses – Arlington VA: Though the idea was reasonable, there are more problems with the HAMP program initiated by President Obama than were most likely expected. The problems are causing many, in the millions, homeowners to continue to have their homes foreclosed on.

The red tape involved in the home loan modification program is a big hold up for many and in some cases it’s as simple, and as frustrating, as lost paperwork that must be submitted more than once. The program takes months to complete and then depends on the final NPV numbers to make the determination about whether the family is eligible for the permanent modification mortgage.

The modified mortgage can do much for those that actually are given the permanent status. It reduces the monthly amount you must pay for your mortgage repayment, which would keep lots of people in their homes without the fear of foreclosure looming and a new mortgage deal.

The lenders are able to reduce the payments by a number of methods including the reduction of interest rates and the reduction of actual principal of the loan. The purpose is to stop the foreclosure, get the borrowers caught up in their mortgage contracts and/or rewrite them to a more manageable term that will reduce the payments.

A family that is behind on payments, or will soon be, due to job loss, severe illness or accident, can apply for modification and the lender will work with them to create a better situation financially that will keep them in their homes. The idea is a good one. The practical application of it, however, is not all that easy to follow.

Many people apply, and then are given new loan amounts to be paid every month as a sort of test to see whether they can keep up the new payments they are given. They must keep up the payment schedule with no late payments for anywhere from 4 to 6 months. At the end of the trial period, and just about everyone gets one, there is the waiting.

The waiting period takes place as the lender does an evaluation of the property value and the ability of the homeowner to pay long term for the home. If the profit turns out to be more by keeping the borrower in the house at the modified amount, permanent modification status is granted. If not, the foreclosure proceeds and the house is sold at auction

American Renewal Propertiesis a Northern Virginia real estate solutions company that buys, fixes and sells residential real estate in Virginia and the metro-DC area. We work with people who as a result of specific stressful circumstances, must sell their houses. http://www.webuyhouses-nova.com

We strive to assist individuals in getting out from under the burden of excessive house payments while at the same time saving their good credit so they will be able to make a fresh start unhindered by credit blemishes. American Renewal Properties specializes in buying these houses headed for foreclosure as well as selected bank-owned properties and general owner-initiated sales. http://www.webuyhouses-nova.com

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American Renewal Properties http://www.webuyhouses-nova.com, is a Northern Virginia real estate solutions company that buys, fixes and sells residential real estate in Virginia and the metro-DC area. http://www.webuyhouses-nova.com