Pleasant Grove, Utah (PRWEB) March four, 2009
There is some very good news concerning loan modification, Fannie Mae and Freddie Mac will modify loans below Obama’s program. Though Loan Modification is a viable way to reduced your payments, beware of loan modification scams. FBI is conscious of this increasing dilemma of loan modification fraud, they have not been capable to act rapidly adequate to stave off the fraud wave.

Against a backdrop of record-low new residence sales and ballooning losses from foreclosures, Housing Secretary Shaun Donovan told lawmakers Thursday that the lending industry is set to launch the Obama administration’s $ 75 billion foreclosure prevention plan next week. Donovan stated “we anticipate to see huge numbers of loan modifications take place really rapidly,” and hopes it would lead to foreclosure prices to drop as soon as April.

Donovan said the plan will permit “borrowers with massive debts and unaffordable mortgages to have their property loans modified to reduce the monthly payment”, even if they are not in default. Borrowers who owe up to five percent far more than their home’s existing worth will be able to refinance, if their mortgages are held by mortgage finance firms Fannie Mae or Freddie Mac. At the very same time, loan modifications will be available for borrowers who owe up to 50 % much more than their home’s at present worth. Donovan stated “we expect to see massive numbers of modifications occur very rapidly,” and hopes it would cause foreclosure rates to drop as quickly as April.

At the same time the “FBI is conscious of the developing difficulty of loan modification fraud”, they have not been capable to act swiftly enough to stave off the fraud wave. They report that they have over 1,500 mortgage fraud investigations more than the final month.

Sean Walker CEO of HomeSaversUtah (http://HomeSaversUtah.com). and President of Good Neighbor Loans, LLC, (http://gnmloans.com), emphasized there are many factors which a homeowner ought to be conscious of when functioning with a loan modification firm.