The drop in housing prices extends to the fourth month. After a five-month run-up in home prices starting last spring, prices have now fallen for four consecutive months – according to the S&P/Case-Shiller Home Price Index of 20 cities, a gauge of market values. In January, prices were down 0.4%, compared with December and have fallen 0.7% from a year earlier.
The government, in order to stabilize the decaying housing market, spent more than a trillion dollars buying assets and investing in mortgages securities. Whereas, the near-zero interest rate was also expected to push the housing market upwards. However, both gave out unsatisfactory results. Moreover, recent news of the government winding up its buying activities will create an adverse effect on the industry. However, there are no updates concerning a rise in interest rates.
Lower interest rates predict good progress for the economy as a whole, especially for borrowers who always hope for ‘inexpensive’ money. On the other hand, these low rates are terrible for savers, especially for retirees who want to convert their lifetime savings into lifetime income. It takes a surprisingly large amount of money to generate even a modest amount of recurring income.
People planning their retirement era are unwilling to invest in such annuities, so what do they do then? They make pensions. It gives them a fixed benefit regardless of changing interest rates, making it more valuable than the annuities.
The other side of the picture – no doubt pensions have a fixed yield, but the changing interest rate stimulates the inflation level, which in turn influences purchasing power and an individual’s average income. Low interest rates means more investments which in turn means more production and consequent demand for production. An increase of 0.79% (January 2010 – 2.63% and November 2009 – 1.84%) in inflation is clearly evident of this fact.
The conclusion – lower interest rates favor borrowers and the housing market as a whole. On the contrary, savings based earners are not getting much out of their investments. What do you suggest, what should such individuals do at this stage? How can the government stabilize the housing market along with increasing interest rates? Is there any other tool, apart from buying assets and mortgage securities?
Original Blog Link: http://blog.mfgmortgagerates.com/?p=46
by Nick Bastian Tempe, AZ
What is the easiest mortgage company to get a loan modification through? Easiest mortgage company? I would like to know!
From what I read, they are all fairly challenging.
I would doubt that ANY would be classified as EASY!
Banks have to answer to their shareholders. Many would not be happy to learn that their banks are foregoing their profits to ‘give borrowers a break’.
The loan modifications are really a catch 22 for borrowers. From my understanding, the borrower has to be ‘behind’ in his or her loan to qualify for the modification, but that late payment record, makes them unattractive to the modification.
It was also my understanding that the modification is done by the bank that originally has the mortgage, so if a person was behind on their loan with BANK Z they could not shop around to try to get the best deal with Bank X.
I say that to say that it might be hard to compare ‘which bank is the easiest’ since most people only have ever had the opportunity to deal with ONE BANK (their current bank) to get the modification.
No one can say for sure because NO ONE has ever dealt with multiple lenders on a primary residence mortgage modification.
I would hope that none of them are “easy”. People who borrow money should be expected to pay it back and not expect an easy modification when they realize they are in over their heads.
None at present
Before you say *anything* about your situation, ask this question. Most of the time, the person shopping for a loan modification will be so upset about their situation, they will look for someone to listen to them explain their situation first.
Resist the temptation.
Ask the loan modification company “how do you know if you can help me” first and let them do the talking. Let them explain how the identify how they know if they can help you or not, what they look for in order to know if they can help someone and what they have seen as far as results.
The more information that you can get from them up front, before you tell them about your situation, the more you will get a good idea if they really know what they are doing.
Are you in need of a loan modification with Chase? This article will give you some insights on what you can do.
First off, Chase owns EMC. So, if you are fortunate enough to have an EMC statement, you can actually get this loan modified in one day. There is a company that can do this for you. They will get authorization to speak with your lender on your behalf, contact them and get the modification done in about a day if you qualify. You must have a financial hardship to get accepted. They do all this for you with no upfront fees and you get to find out your new rate and payment before you pay as well.
For other homeowners, there are other options out there for you. If you have not tried to get a Chase loan modification, you should contact your lender and give it a shot. If you are denied, you might want to consult a professional. The only thing bad about this option is that you will give Chase all your financial information during this process, which is crucial to getting approved. It may be difficult if you get denied to go back and re-apply with completely different financial information…
That is the key to getting a modification approved, with any lender. You have to have the right balance of income vs. your expenses. You do want to appear dirt poor and you can’t make too much money either. It’s a fine line between acceptance and denial.
If you’d like some help with your Chase loan modification, just visit the links below. This company can perform the instant loan modifications as well as traditional Chase modifications with no upfront fees.