Foreclosures Take 12 Months on Average

Several new proposals have made their way to the President to help you save your home from foreclosure.  These are all proposals, but some of them will probably make it to law…only question is how long before they do.

And then how long will it take your lender to figure out how they’re going to implement them.  And will they have already foreclosed on you by then…

HAMP Stats

As of the end of January, 116,297 troubled mortgages had been permanently modified under HAMP. About 830,000 more were in the trial phase of the program.

So all together, a little less than 1 million of the 3 to 4 million homeowners that the President’s plan was meant to help have been helped.  And we’re almost a year into it.

30 Day HAMP Appeal Period

If you lender turns down your application for a HAMP mod, this proposal would give you a 30 day period to appeal the decision before they could begin foreclosure procedures to get you out of your home.

In addition, lenders would have to prove that they have made multiple attempts to contact you both by phone and written notices, and would require them to consider HAMP applications even if you have already filed for bankruptcy.

Revising Net Present Value Calculations

The administration is also considering revising HAMP’s net present value (NPV) model in order to incorporate more principal writedowns into the equation. The NPV test is applied to determine if the mortgage owner can recoup more money by restructuring the loan or by foreclosing.

Foreclosures Take 12 Months on Average

Lenders have expressed concern the proposed requirements would prolong foreclosure delays beyond the current 12 month timeline it typically takes to resolve the loans that don’t qualify for a modification.

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4 Comments For This Post

  1. will Cutlip Says:

    When I’m on your web site it’s like there is an elephant in the room and everyone here is afraid look at it or talk about it any explanation is a little to spammy for your site. You sure you’re not run by the banking system here to continue to placate homeowners.. Just give them some hope and somewhere to vent until it’s over until it’s too late, because you could have fooled me. I am not going to loose my home but it s not because of sites like this.

    Todd Reply:

    Thanks for your comment. We have no connection to any bank or loss mitigation or law firm. If you’d like more info on us, please check out our Contact Us page.

    I also can’t tell if you’re giving me a put down or a compliment, Will. ;)

    All the best,

  2. jim renfrew Says:


  3. russ bear Says:

    All these empty houses because banks gave loans to people so that they could get their money and now they should have to pay back the monies they have stolen and allow the people who can afford to stay in their house the modification and lower the payments. Soon there will be no money to buy a house and then what happens, sounds like all down hill to me

  4. Tony Flynn Says:

    I just received a loan modification letter.They approved it and lowered my payments by $75.00, reason being my wife has started working temporarily. Do i accept it? my fear is they will proceede on modification if i do not. It is still a challenge to pay the new amount. My trail payments were manageable. What do i do?

    Todd Reply:

    I’m not sure I follow your situation completely, but in the end it comes down to a couple things. First, can you make the modified payment work? And second, do you want to stay in the home? Is sounds like the answer to both questions is yes. Make sure you can afford the payments if they’re scheduled to go up in a few years too, though.

    Your bank in probably not going to give you a “better deal” because according to their figures you can afford this payment. I know that what you think you can afford and what the bank thinks you can afford are probably very different numbers. If staying in this house is your top priority than take the offer.

    I have to ask, though, is staying in a house you can barely afford really in your family’s best interest? I know very little about your specific situation, so maybe it is. But I do know that living under constant financial stress doesn’t make for a happy and content family. If it’s a short term situation, that’s one thing. But if you expect your hardship to last for a long time, you might be better off savings your money rather than sinking it into this modification and then moving to a rental house shortly before the lender forecloses.

    I don’t pretend to know the best solution for your situation. But I encourage you to think long term rather than focusing on keeping your house at all costs.

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