Modified Loans May Still Lead to Short Sales

Written by admin on 21 March 2010

Modified Loans May Still Lead to Short Sales

Will Loan Modifications Help Homeowners in Orlando, Florida?

In areas like Orlando, Florida, hard hit by increased foreclosures and decreased home values, loan modifications held out some hope for slowing the real estate market’s downward spiral. However, initial early data may indicate many struggling homeowners should opt for short sales instead of modifications, and their lenders may now see short sales as a better option, too.

According to the latest data released Monday by the federal bank regulator, Office of Thrift Supervision and Office of the Comptroller of the Currency, loan modifications may not be the answer to the real estate foreclosure crisis. Of homeowners who worked with their lenders to modify their loan terms, more than half fell behind on the new payment arrangement.

Ruth Simon, writing for the Wall Street Journal-Real Estate section, says such “high default rates raise questions about the effectiveness of efforts to work with troubled borrowers…” The numbers tell the tale: Loan modifications were given to nearly 73,000 borrowers in the first quarter of 2008 with another 114,000 modifications in the second quarter. Reports from the first quarter to September 30 indicated that nearly 36 percent of the revised loans were past due only three months after the modification, and over half were two months past due six months after the modification. Although some of the homeowners were able to bring their loans current after they fell behind, over 41 percent were at least 60 days past due eight months after their new payment agreement.

Is A Short Sale Right for Your Situation? Find out today: If you live in Central Florida, contact The Orlando Property Group, your experienced short sales agents, specializing in real estate in Lake, Seminole, Orange, and Volusia Counties.

Searching for a great real estate value in Central Florida? Need help with a short sale? Call or email me TODAY to go over your options!!!!!! Looking for specific information regarding Orlando Florida real estate prices and communities? Get Your Free Market Snapshot Read Also: Orlando Florida Relocation Resource Guide Read Also: Business 2.0 Magazine has named Orlando the number 1 hottest market with America’s best jobs. Read Also: Orlando Florida Facts & Resources Read Also: Orlando Florida City – Everything You Need To Know! If you are wanting to sell your Seminole County or Orlando area home in the next 6 to12 months, now is the time to begin putting your plan into place while time is still on your side. Please contact us for any real estate assistance you may need. We’re experts at putting people together with homes they love and can afford. Contact us today for information on Orlando and Seminole County real estate, Orlando & Seminole County homes for sale, Orlando & Seminole County relocation information, a free market analysis of your Orlando area or Seminole County home or statistics on homes in Orlando & Seminole County Florida or the surrounding Central Florida area, including Seminole County, Orange County, Lake County and Volusia County. We’re always available to answer your questions.