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Loan Modification Program failed miserable in Florida

Posted by Petra Norris on January 19, 2010 at 10:00am
Loan Modification Program failed miserable in FloridaFlorida Homeowners hold on to their property with a needle and a thread, hoping for a loan modification under The Making Homes Affordable program. According to the Florida Realtor’s website, only 8,405 in Florida get mortgage modification. This is simply pathetic!Here are some basic rules to qualify:• The property must be owner occupied with the owner still living in the home• The borrower must have sufficient income to support the new mortgage debt• The first mortgage may not exceed 105% of the current market value of the property. For example if the property is worth $200,000, the borrower must owe $210,000 or less.• The borrower/homeowner monthly housing expenses (PITIA), defined as principal, interest, taxes, insurance and association dues must be more than 31% of gross monthly income.These are the reason, in my opinion, why this loan modification program was doomed from the beginning:• Property values in Florida declined at a staggering rate of 30%, 60% and even 80% in some areas, since the housing boom of 2005. Making it impossible to qualify based on current market values.• High unemployment rates in Florida• Homeowner must have income to qualify for this program.• BureaucracyShort Sales do close in Florida and if you are looking for more information about Short Sales, I invite you to visit www.shortsalesuperstars.com a forum for homeowners and real estate agents that deal with short sales on a daily basis and where I am a member.
Tags: florida, loan, loan modification, modification
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Comments

  • Melanie Hollis January 21, 2010 at 10:57am
    the problem is they take FOREVER to get a loan modification approved. In the meantime homeowners are struggling to hold on. THEN as in the case of Bank of America, they will file an LP on someone who is the middle of Loan Modifcation or Short Sale Approval if they arent making payments.. its a ridiculous circle
  • Wendy Rulnick January 19, 2010 at 12:57pm
    Petra - I think #1 is employment! You cannot pay anything if you don't make anything! So many jobs lost.
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