stopping foreclosure, loan modification companiesThis morning like many I started reading the daily news online after breakfast. I came across a very interesting article from the Associated Press pertaining to this blog. Like I said before I have only had second hand experiences with loan modification companies. I’ve never looked into stopping foreclosure personally being a renter but I have talked with real estate agents, family and friends about this whole confusing jumble of residential loan repayment. So that is my back story, now what I concluded after that AP article titled Wells Fargo signs up for loan modification program is that a homeowner’s specific lender can have a lot to do with the results of stopping foreclosure.

To paraphrase the article, Wells Fargo recently agreed to become part of Obama’s mortgage modification program for those interested in modifying their second mortgages. Sometimes these people are the ones who have gone with loan modification companies before maybe before times were tight to create a lesser monthly stress when bills came down the pipe. I don’t know if this is a fact, not being a homeowner but I would assume those with multiple mortgages concerned with stopping foreclosure are more desperate from the bank’s point of view then people with a single mortgage payment.  That being said there was a large increase of second mortgages when the residential boom occurred according to the Associated Press. Reason being these second mortgages greatly reduce if not nullified down payments and the monthly house payment.

So initially, these people with second mortgages may not have gotten them because of desperate financial times but after the economy collapsed and that second mortgage payment sky rocketed a once great thing turned into a scramble towards stopping foreclosure. This article may be great news for those using the Wells Fargo family of lenders.

The point of all of this is that the policies of a lender and their allegiance with specific government funded mortgage programs can have a great effect on the results of loan modification companies. It is just something else to consider for those interested in stopping foreclosure or reducing some of the monthly bills. It is no secret our country is still in a downturned economy. Anyone who has recently looked for a job can vouch. Times could always be worse. Like all economic downturns, it will bounce back. When, is for economists and academics to debate. Until then we have to stay positive and ride out this storm.