Mortgage Modification Rarely Includes Debt Forgiveness
photo credit: Simon Blackley
When the Obama Administration created the Home Affordable Modification Plan (HAMP), most homeowners believed that it would include a reduction in the principal amount owed on their home. The home owners applying for HAMP have discovered that only 1 in 50 homeowners have seen an actual reduction in principal. The other 49 home owners have actually had their principal raised, mostly in the form of late fees, missed payments, and attorney’s fees tacked on to the back of their mortgage. A reduction in pricipal means that investors have to lose money, not just banks, but others that fronted the money used in some of these mortgages. Should they have to take a loss? Maybe it’s in their best interest to take a little of a loss now instead of a much greater loss in foreclosure? Read all of the details at BankRate.com.
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Tagged with: foreclosures • Motgage modification • Short Sales
Filed under: Avoiding Foreclosure
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Another failed Obama pipedream, when is it going to change?