Loan Modification Program failed miserable in Florida
Florida Homeowners hold on to their property with a needle and a thread, hoping for a loan modification under The Making Homes Affordable program. According to the Florida Realtor’s website, only 8,405 in Florida get mortgage modification. This is simply pathetic and a nightmare!
Here are some basic rules to qualify:
- The property must be owner occupied with the owner still living in the home
- The borrower must have sufficient income to support the new mortgage debt
- The first mortgage may not exceed 105% of the current market value of the property. For example if the property is worth $200,000, the borrower must owe $210,000 or less.
- The borrower/homeowner monthly housing expenses (PITIA), defined as principal, interest, taxes, insurance and association dues must be more than 31% of gross monthly income.
These are the reason, in my opinion, why this loan modification program was doomed from the beginning:
- Property values in Florida declined at a staggering rate of 30%, 60% and even 80% in some areas, since the housing boom of 2005. Making it impossible to qualify based on current market values/mortgage ratio.
- High unemployment rates in Florida
- Homeowner must have income to qualify for this program.
Short Sales do close in Florida and if you are looking for more information about Short Sales, I invite you to visit www.shortsalesuperstars.com a forum for homeowners and real estate agents that deal with short sales on a daily basis and where I am a member.