When President Obama announced his Making Home Affordable program last spring, as professionals in the business we all hoped this might assist many home owners who were being adversely affected by the tremendous drop in the overall real estate. In the upper Verde Valley we have experienced a drop of nearly 40% in value over the last 16 months. Living in a smaller community we have also experienced contraction of peoples salaries through job loss, cut in hours, and for the self employed no one to service. The Presidents plan seemed like a really good start.
That was March, now here we are in December. I know only a few personally who have been successful in their quest to modify their loans. Of those they worked directly through our Congresswoman Ann Kirkpatrick's office. She has a full time staff person assisting homeowners. Others are still lost in paperwork Purgatory with their lender. And finally today, this latest article from CNN Money spreads more of the realities that effect us all.
http://money.cnn.com/2009/12/28/news/economy/loan_modifications_credit_history/index.htm
It's a good article reminding us, that everything we do in this modern era effects our credit. Loan Modifications are no different.
Does this mean I am recommending you avoid loan modifications - absolutely not. Every one's situation is different. Your credit is like your finger print. No two are the same, and like your finger prints, you must be mindful what you touch, when & how.
First recommendations, always talk to your lender. Putting your head in the sand does you no good & I promise the problem will not go away. Call your Realtor, CPA & lawyer. Get good advice from professionals. This can assist you in making good informed decisions.
As a country we will get through this. Right now it is not necessarily easy. But hopefully we will be smarter on the other side.
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