Can a Modified Loan Keep YOU in Your Home?

From CNNmoney.com, this article is so notable because it speaks to so many homeowners today, who are struggling to come up with their mortgage payments amidst this economic crisis.



I just want to say, that I really don't like using the terms, "crisis" or "struggling" because as a real estate agent, I try to stay as positive as I can be. The news that we watch everyday does a great job of constantly feeding our negative emotions, to the point where all we beleive is negativity, doubt, and empty thoughts. My advice to anyone reading this is to just continue to stay positive, because negative emotions will only break you down and weaken you. Although these times are tough, I purposely turn off the news sometimes when I hear information that will make me sad or worry; it might be confused for being ignorant, I know. Yes, ignorance can be blissful sometimes, but it's just my tactic for maintaining a positive vibe. And, I think that we should all do this from time to time, just to keep our heads up.



Moving onto the article that was forwarded to me, found on CNN's website, Citigroup has recently implemented a newer, proactive approach for customers that are current with their mortgage payments. Their loans are going to be modified to a more affordable monthly requirement. Citigroup, Bank of America, JP Morgan Chase, and IndyMac Bank, are some of the banking institutions that are assessing ways to prevent many of these mortgage issues from happening. Again, this offer is only available to consumers that are still current and paying their mortgages on a timely basis.



The program is known as the "Citi Homeownership Assistance Program," whose goal is to assist "..borrowers in areas of steeper-than-usual falling prices and higher-than-average unemployment," says CitiMortgages CEO Sanjiv Das. New York was not a listed area, but some states that are being targeted include: Arizona, California, Florida, Michigan, Nevada, and Ohio. I hope some of the New Yorkers get to take advantage of this program, but the article didn't mention if it would be open or not to the Big Apple.



Here are some numbers:



The article states that timely borrowers can have their payments reduced up to 40% or less of their income. (The article didn't state whether or not Citi would go according to your salary before or after taxes). Interest rates will be lowered, and the overall timeframe of the loan is to be extended, if or once the borrower decides to utilize this program.



The expectations are high for the number of homeowners that will be assisted and relieved with this current option. I appreciate the high projections because it signifies positivity, on the surface. "Hundreds of thousands" are expected to take full advantage of this resource. But on another note, says senior economist Jared Bernstein, "help is needed by the millions."



My personal prediction is a bright one; I wish for a forecast that will shine on all of the homeowners that are on the edge of losing one of their most biggest investments of a lifetime. It may sound a little bit naive, sure, but the message that I want to bring today, is to have faith. Hold on, and keep continuing to beleive that help is right around the corner because one day, that opportunity for help will be knocking on YOUR door. You just better be there to answer it !!!!!!!



"got hope?"



-iva