[PDF][PDF] Voluntary Loan Modifications Fall Far Short
OFATR HOMES - 2008 - responsiblelending.org
OFATR HOMES
2008•responsiblelending.orgWall Street analysts estimate that by the end of next year 2.0 million families will receive a
foreclosure notice leading to the loss of their home. 1 Merrill Lynch estimates that direct
investor losses from mortgage defaults will total $400 billion. 2 An estimated 3.5 million
families are trapped in “exploding” adjustable-rate mortgages (ARMs) that are due to
increase to unaffordable interest rates in the next two years. On many of these loans, the
debt owed is more than the value of the house. 3 Lenders who marketed exploding ARMs …
foreclosure notice leading to the loss of their home. 1 Merrill Lynch estimates that direct
investor losses from mortgage defaults will total $400 billion. 2 An estimated 3.5 million
families are trapped in “exploding” adjustable-rate mortgages (ARMs) that are due to
increase to unaffordable interest rates in the next two years. On many of these loans, the
debt owed is more than the value of the house. 3 Lenders who marketed exploding ARMs …
Wall Street analysts estimate that by the end of next year 2.0 million families will receive a foreclosure notice leading to the loss of their home. 1 Merrill Lynch estimates that direct investor losses from mortgage defaults will total $400 billion. 2 An estimated 3.5 million families are trapped in “exploding” adjustable-rate mortgages (ARMs) that are due to increase to unaffordable interest rates in the next two years. On many of these loans, the debt owed is more than the value of the house. 3
Lenders who marketed exploding ARMs assured borrowers they would be able to refinance before the interest rate on the loans jumped to a higher level. But today, refinancing or selling is not possible for too many families. Homeowners with distressed loans have two options: Either obtain a voluntary modification from their loan servicer 4 or lose their house to foreclosure.
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