OCEANSIDE, Calif., Jan. 13 /PRNewswire/ -- The Treasury Department recently released data on activity in its Making Home Affordable (MHA) loan modification program during November 2009. As expected, borrowers continued to enter the program under trial modifications. More than 728,000 borrowers are actively participating in loan modifications.
Matthew Smith, founder of ModPilot consumer advocate program, points to several reasons why homeowners are taking advantage of loan modification programs in record numbers:
-- With interest rates poised to rise, now is a good time for homeowners to modify or reduce their mortgage payments.
-- The timing is right; at the first sign of a market turnaround, lenders will cease loan modifications.
-- Thanks to the Mortgage Debt Relief Act of 2007, debt reduced through mortgage restructuring is tax-free. This provision applies to debt forgiven in calendar years 2007 through 2012.
ModPilot is designed to help homeowners easily and successfully negotiate the loan modification process. And the process is a worthwhile one. Modifications are providing real benefits to homeowners - these borrowers are saving an average of over $550 per month, according to the government's news release.
The Obama administration is committed to making loan modifications available to those in need. "Our challenge now is to keep the pressure on," said HUD Senior Advisor for Mortgage Finance William Apgar.
Smith emphasized that the best way to determine a company's legitimacy is to look at its results. With dozens of banks offering loan modification programs, he said this is key. A list of participating financial institutions is available at http://www.yourmortgagerights.com/5.html.
The results of ModPilot customers speak for themselves:
-- One customer saved nearly $210,000 in interest when the bank deferred $158,000 of principal, plus they saved more than $160,000 on the new lowered principal balance.
-- One loan modification resulted in a $106,000 principal reduction and rate reduction from 7.85 percent to 4.81 percent.
-- In one instance the interest rate was reduced to 3 percent, with a monthly savings of $1453.51.
-- Another customer obtained a $112,000 loan with zero interest.
-- In another case, 90 percent of the loan balance was forgiven.
For more information on ModPilot, visit http://www.ModPilot.com
This release was issued through eReleases(TM). For more information, visit http://www.ereleases.com.
SOURCE ModPilot Inc.