Jan. 19, 2009 - Mortgage modifaction - what a mess!

Roadblocks and hurdles

In slightly more than 24 hours, we will enter into a new American era. President-elect Obama and the 111th Congress will begin the hard work in resolving the housing crisis.  Regardless of the plan, there will be roadblocks along the way.  MSNBC has provided an excellent report on why it is (and will continue to be) so hard to modify a mortgage.

At the heart of the problem is the fact that, "Most mortgages written during the peak of the lending bubble were bundled into pools of loans whose monthly payments are paid to the holders of a series of mortgage-backed bonds. The original lender no longer has an interest in the mortgage. " - from MSNBC

So, even if the servicing mortgage company agrees to modify the interest rate, it is much more difficult to get the outstanding loan amount also modified.  Don't attempt to accomplish this alone.  Many forclosures begin with the homeowner modifiying their mortgage.  You may be better served to seek legal council at the outset.  To learn more about the process and for the complete story visit MSNBC