While the pace of foreclosures has slowed down for the state of Illinois as a whole in April there were still a total of 13,647 foreclosure filings. This number is an 11 higher than the same time last year. During April, one in every 384 homes in Illinois received a foreclosure filing, which can include initial default notices, auction sale notices and bank repossessions. Nationally, foreclosure filings were flat for the month but up 32 percent from a year ago. During the month, one in every 374 homes received a foreclosure filing, the highest monthly rate since January 2005. As many states decide to enact moratoriums in an attempt to reduce the amount of foreclosures the numbers should continue to decrease month by month but these moratoriums are really just a stalling tactic so at the end of these moratorium periods which are anywhere from 90 days to six months, there will be a high number of foreclosures again. To prevent this cycle from occurring the Presidents administration is implementing mortgage modification programs that are designed to assist the distressed homeowners with finding alternatives to foreclosure. These alternatives come in the form of mortgage modifications that reduce the homeowner's monthly payments and in turn help to avoid foreclosure. While the mortgage modification programs being implemented may help save many of the homes that are in risk of foreclosure there are advantages and disadvantages of mortgage modifications. ADVANTAGES: A successful Loan Modification will supply you with the following: 1. an interest rate reduction. Under President Obama's current program this rate may be as low as 2%. 2. The advantage of having the reinstatement amount (total amount of late payments) deferred to the back end of the mortgage and added to the current principle. 3. A reduction in the actual principle balance of the loan 4. Has many of the same features of a refinance, without the high cost. DISADVANTAGES: 1.You only get one shot at the Loan Modification so you need to get it right the first time. It is important that you make sure your mortgage modification sets up payment perimeters you can afford. 2. Your mortgage company does not earn money making you modifications so they will most likely offer you terms that are not actually helpful. 3. Due to the high rate of foreclosures there are an abundance of scams out there set up to take your money, that promise to help you with negotiations. To avoid these scams NEVER PAY A DOWNPAYMENT TO ANYONE OFFERING TO ASSIST IN A MORTGAGE MODIFICATION. Discover how you can ethically modify your home mortgage loan and save as much as 47% off your current mortgage payment in as little as 60 days without refinancing? For your FREE CD, FREE e-book, and FREE coaching call with Mortgage Modification Expert and Business Man of the Year Billy Alvaro visit our website Saint Jude's Mortgage Rescue
Please Rate this Article 5 out of 54 out of 53 out of 52 out of 51 out of 5
Not yet Rated
