Defaults in home-loan modification program increase; consulting an attorney the best option
The number of homeowners who defaulted on their home mortgage loans, even after getting cheaper terms through the government’s home loan modification program, doubled in March according to an article this month in the New York Times.
This is another example of why loan modifications are not always the best answer for South Florida homeowners struggling with underwater mortgages, foreclosure or bankruptcy in the Miami area. As one of the nation’s hardest-hit real estate markets, homeowners need an experienced Miami foreclosure defense attorney to push for a reduction in principal or assist you and your family in seeking other alternatives.
As we reported last month on our Miami Foreclosure Lawyer blog, more than half of all homeowners continue to struggle even after loan modification.
The latest data, released Wednesday by the U.S. Treasury Department, shows the number of terminations in the program has skyrocketed to 2,879 in March, up from 1,499 in February and 1,005 in January. Almost all terminations were apparently the result of a borrower being unable to make new payments.
While the government’s stated goal is to assist 4 million homeowners through modification, only 227,922 modifications had been made through the end of March.
If you have are facing foreclosure in Miami, or are considering a short-sale, home-loan modification or bankruptcy in South Florida, contact Barakat, Jacobs & Associates for a confidential appointment to discuss your rights. Call (305) 350-5055.