During the heady times of the real estate ‘bubble’ Chico homeowners enjoyed some of the highest appreciation in the nation. Two to three years now after the bubble first leaked and then burst, Chico infamously has among the higher default rates in the country.
If declining home values were the only issue there wouldn’t be too much of a problem, but the compounding impacts of payment increases on adjustable rate mortgages and higher unemployment has exacerbated the problem. For awhile distressed borrowers floundered in attempting to negotiate loan modifications with lenders who were unwilling to deal with borrowers or acknowledge the magnitude of the problem.
Enter the Making Home Affordable Program introduced by President Obama (watch video at http://www.youtube.com/watch?v=PnGqRcn476U ) . Per the T.A.R.P. (Troubled Asset Relief Plan) bailout plan, lenders who received federal bailout funds are obligated to work with borrowers who are having trouble making their mortgage payments. The Making Home Affordable Program provides troubled borrowers with free counseling services, a generic application form and instructions for what type of documentation they will need to convince their lender of the need for a modification. It also provides contact information for the 100 +/- loan servicing companies enrolled in the program nationwide, which includes most major lending institutions.
To find out more about the program go to http://www.makinghomeaffordable.gov/ .
If declining home values were the only issue there wouldn’t be too much of a problem, but the compounding impacts of payment increases on adjustable rate mortgages and higher unemployment has exacerbated the problem. For awhile distressed borrowers floundered in attempting to negotiate loan modifications with lenders who were unwilling to deal with borrowers or acknowledge the magnitude of the problem.
Enter the Making Home Affordable Program introduced by President Obama (watch video at http://www.youtube.com/watch?v=PnGqRcn476U ) . Per the T.A.R.P. (Troubled Asset Relief Plan) bailout plan, lenders who received federal bailout funds are obligated to work with borrowers who are having trouble making their mortgage payments. The Making Home Affordable Program provides troubled borrowers with free counseling services, a generic application form and instructions for what type of documentation they will need to convince their lender of the need for a modification. It also provides contact information for the 100 +/- loan servicing companies enrolled in the program nationwide, which includes most major lending institutions.
To find out more about the program go to http://www.makinghomeaffordable.gov/ .
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