Half of All Homes “Underwater” by 2011
Hold on. We’re not through it yet. One out of two homeowners will owe more than their house is worth by 2011.
We predict that Loan Modifications and short sales will increase exponentially in the next year or two. We are already seeing lenders overwhelmed with requests for help; they are hiring new (hopefully knowledgeable and trained) staff almost daily.
It is more important than ever to work efficiently and effectively with the big lenders. Their workload is so great that they don’t have the time or the manpower to process incomplete or shoddily put together loan modification proposals.
We know of one homeowner who was recently contacted by her lender who left her a voicemail giving her 24 hours to get some urgent documentation to them or they would cancel her request for help and proceed immediately to foreclosure.
Unfortunately,that voicemail message was in English and the homeowner spoke only Spanish. Within days she had received a Notice of Trustee’s Sale and an auction date.
We were able to undo the damage but it was a stressful and nail-biting couple of days for the homeowner before we did so.