Pinetop White Mountain Blog

Good Morning Everyone,

Finally, the Banks and more importantly the FHA are listening to those of us in the Real Estate Industry who have been bemoaning the fact that a Borrower had to be behind on their mortgage before they could get any help with modification on the terms of the original contract.

Borrowers with FHA insured Mortgages who are having difficulty meeting their obligations can now contact their mortgage companies for loss mitigation assistance before they are in default on the terms of the original mortgage.

Mortgage Companies and REALTORS® have been trying to get someone in Washington to listen to us about this for a long time.  In Arizona where we use Deeds of Trust and Notes rather than Mortgages, this has been a major issue.  Under a Deed of Trust and Note, no Court action is required for the Mortgage Company to foreclose on a property.  That action only takes 90 days from the first default.  When a borrower had to be behind on the payment before they could even talk to anyone, there simply has not been enough time for the borrower to work anything out with the mortgage company in most cases.

Now we can only hope that the pressure being exerted by the Federal Government on all Mortgage holders to work harder to help the consumer that this will help stem the tide of foreclosures in our Country.  Until that bleeding can be stopped, values are going to continue to decline and more and more borrowers will feel they have no choice but to let the homes go back to the bank.  No real recovery in the economy can begin until Real Estate gets back on solid ground.

Lenders need to start working with their troubled borrowers, they need to start lending again, and we need to get Real Estate moving again.  If that happens everything else will follow close behind. 

If you have an FHA loan and are having difficulty, get in touch with your lender today and see if they aren't a little more willing to work something out with you.  It is a hassle, and it takes a lot of persistence and perseverance to get through to the Loss Mitigation Departments, but if you can break through the barriers that are in your way, you may be able to get some help with this new Legislation.

Just for fun I though you might enjoy taking a look at what the Big Snow of 2010 in the High Country of Arizona looks like.  We had nearly five feet of the White Stuff at our house.  We finally dug out yesterday so we can venture more than one foot outside the front door.  It has been an adventure.  One I hope not to repeat for a long long time.

PHOTO BELOW.

Have a wonderful Monday and good luck with your Loan Modification efforts.

Sandra Paulow, Associate Broker, GRI  (928) 242-0300

Your High Country REALTOR®