In 1982, the Clash released their single “Should I Stay or Should I Go?” Here are a few of the lyrics:
Should I stay or should I go now?
Should I stay or should I go now?
If I go there will be trouble
An’ if I stay it will be double
So come on and let me know!
So you got to let me know
Should I stay or should I go?
This indecision’s bugging me
If you don’t want me, set me free
Come on and let me know
Should I cool it or should I blow?
If you’ve applied to the HAMP (Home Affordable Modification Program), you probably can relate to these lyrics. You don’t know if you should stay in your current home or just move. Many of the people I’ve talked to about HAMP have told the government, “JUST GIVE ME AN ANSWER!!”
For those of the people who want to stay in their home, we have this rather alarming report from the National Association of Realtors:
August 2010, “Nearly half of the 1.3 million homeowners who have accepted loan modifications under the Home Affordable Modification Program have washed out of the program, according to the latest report from the Treasury Department.
At the end of July, there were 421,804 homeowners enrolled in permanent HAMP loan modifications, and another 255,934 borrowers in active trial loan modifications.
All told, a total of 677,738 homeowners were in permanent or trial HAMP modifications. But almost as many borrowers had already washed out of the program — 629,751.
Many analysts expect that more than half of HAMP loan mods will end up redefaulting. With fewer homeowners entering the HAMP pipeline — only 24,577 new trial modifications were reported in July — it’s considered unlikely that the program will meet its initial goal of helping up to 3 million borrowers avoid foreclosure.
In releasing its “Housing Scorecard” for August, the Obama administration nevertheless offered a positive outlook on the overall housing picture, saying the HAMP program represented “just one, targeted piece of the administration’s larger efforts on housing.”
From April 2009 through the end of June 2010, the Federal Housing Administration (FHA) has also entered into 472,000 loss mitigation and early delinquency interventions, and loan servicers modified 1.4 million mortgages outside of the HAMP process, the scorecard noted.
The 3.15 million mortgages modifications started during the period was more than double the 1.24 million completed foreclosures.
After 30 straight months of decline, home prices have leveled off in the past year, although the overall housing outlook measures remain mixed, the scorecard said.”
So what does this mean? You have about a 50/50 chance to keep your home if you do a loan mod. If you try the loan mod and it doesn’t work, you’ve just thrown thousands of dollars at a losing cause aka throwing good money at a bad situation. The reason for the high failure rate is that even with a loan mod, most borrowers are one hiccup away from missing a payment and losing the home anyway.
My goal for you is look at your financial situation realistically instead of emotionally. Only you can decide if a loan mod or short sale is best for you but I’ve found that having a detached observer helps people make the right decision. If you’re in this position, you’ve problem run through the questions and options through your head a thousand times. You don’t see a resolution because you’re a victim of “circular thinking”.
Are you trying to decide what to do with your home? Do you want someone to listen to your story and give you feedback from a non-emotional viewpoint? Now I know that you’re thinking, “This is just another realtor who wants me to sell my house.” But that’s not the case, I just want you to make good decisions. I have more than enough homes to sell and have helped people stay in their homes rather than sell.
So what’s best for you? I don’t know because I don’t know all the facts. I can promise you that I will never push you into selling your home. But I’ll also tell you the truth if I think you can’t save it. And you’re under no obligation to use me as your realtor.
Call or email to set up an appointment to see what you should do so you can move on to the next phase of your life.
Thanks for reading this.
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