Extreme Loan Modifications
Some people are rates as low as 2%, according to the article below. It looks like more and more modifications are resulting in lower payments and in the 2nd quarter 80% did which is up over 50% from 3 months earlier. You would think it should be 100% but they seem to be doing better.
I am sure all of us have heard stories where some are getting no help and then another person get a 4% interest rate and a principle reduction. It happens and some get lucky but then there are others who create their own luck. There is a book called “Lucky or Smart” by Bo Peabody and it’s about how smart people put themselves in positions to get lucky so really it isn’t luck. Well that is what it seems some have done, gotten off their butt, the phone, email, etc. and went to their lender:
“Wynn was able to get his modification at a “Save the Dream” event offered by the Neighborhood Assistance Corporation of America (NACA) in New York City last Friday. Lenders from nearly all the major banks and servicers were in attendance and promising to restructure loans based on what borrowers could afford. As a result, many homeowners walked in with their mortgage problems and walked out with solutions. In fact, according to Bruce Marks, NACA’s founder, 40% of attendees left with decisions the same day. About 80% are expected to receive workouts within weeks. His organization has already hosted about 400,000 borrowers at more than a dozen of these events.”