Feldman Law Center - Loan Modifications are Working Says FDIC Chairman

Loan modifications are working and are showing encouraging results but could be threatened by a softening economy over the long haul. “Efforts at mortgage loan modification are having positive results, but their ultimate success will depend on the trajectory of the economy,” said Sheila Bair chairman of the Federal Deposit Corp., on Thursday. The economy could also affect the acceptance of loan modification applications because loan workouts are less likely to be approved if the mortgage distress is caused by a life event such as the loss of a job rather than the structure of the loan itself.

The initial push for the Obama Administration’s “Making Home Affordable” plan comes at a time when banks are ramping up foreclosures as they let their self-imposed moratoriums on foreclosures expire.  According to RealityTrac, an Irvine, Ca. company that compiles statistics on and lists foreclosed properties, there were 341,180 filings across the country, an increase of 46 percent from March and 17% from April of 2008. The numbers represent the highest monthly total since RealityTrac began collecting foreclosure data in 2005.
Acknowledging the challenges facing the new government programs against a rising tide of foreclosures, Baird said, “My sense is that it's having an impact but there's obviously still distress in the mortgage market”.

There is evidence that most mortgage holders are willing to stay in their homes and honor their commitments as long as their payments can be reduced to an affordable level even if the value of the home is less than the mortgage. The government programs have encouraged principle reductions in situations such as these but, at least so far, the reductions still occur in only a small percentage of loan modifications.
Speaking at The Chicago Federal Reserve Bank's annual bank structure conference, the chairman also expressed that the secondary mortgage market needs to be addressed as well.

The Obama Administration has announced a new program in late April that allows for modifications of second mortgages which follows guidelines similar to the “Making Home Affordable” plan. Bair also addressed the FDIC’s workload due the recent run of bank failures saying, “…the agency had added 1,000 staff in the past and is still hiring”.

The Feldman Law Center specializes in negotiating with lenders on the behalf of homeowners to make their mortgage payments affordable again. During the current housing down-turn, the loan modifications we have negotiated have helped over 500 families lower their monthly payments and avoid losing their homes to foreclosure.

We understand that each family has different needs as they enter with us into their loan modification process. For that reason, we approach each loan modification as a unique opportunity to provide a solution specifically built for each homeowner’s situation.



Our attorney driven process is designed to gain optimal results on each loan modification we negotiate on behalf of our clients. Combine that with a staff that arrives each day with dedication and compassion for our clients and you have a team that is second to none. Our state of the art technology systems assure the best in customer service while also allowing us to stay ahead of the ever changing rules and guidelines that govern loan modification.



The people at The Feldman Law Center understand that the dreams of home ownership and being part of a community must be protected one family at a time. We also understand that the threat of losing those dreams can put enormous pressure on families like yours. If you are struggling with your monthly payments and worried about the threat of foreclosure, we can help. Find out how a loan modification can help you and your family. Call The Feldman Law Center today at 800-588-0425.



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The information contained herein is provided for general information and advertising purposes only and is not intended to convey a legal option nor legal advice for any particular case or situation. Nothing in this article shall create an attorney-client relationship. Nothing sent to this law office via e-mail shall constitute an attorney-client relationship. Nothing contained in this article shall be construed to be a guarantee or prediction of result. Prior results are provided for general information purposes only and do not guaranty, warranty or predict a similar outcome with respect to any future matter.   Results achieved depend on individual circumstances and not everyone will qualify or be successful in restructuring their mortgage loan.