Today I renegotiated a client’s $700,000 home loan from an ARM at 6.5%, which is adjusting to 6.875% in January to a 6.0% fixed rate for 40 years. No fees, no appraisal, no new title insurance - very little hassle.
In markets where home values have declined (almost every where on paper - see earlier blog entries about the falsity of comparable market appraisals), lenders are being encouraged by The Feds to agressively modify their primary home loan portfolios. This does not generally apply to second home loans.
Lenders are renegotiating terms like rate and loan balance in order to keep the payments affordable for the borrower to keep paying and stay in the home. You need to prove hardship, and ability to pay at the lower level and there is a whole process to follow. Many mortgage companies are re-tooling to offer the service, our sister company Americor Financial Services has an effective program as well and I believe it is worthwhile for many home owners to explore the options. www.H4Hnow.com
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