Chicago homeowners struggling to adapt their mortgage terms received some good news this week. The Obama administration has convinced Fannie Mae and Freddie Mac to develop new methods for mortgage lenders to be paid on loan modifications.
Currently, loan companies receive set amounts for payment collection on loans that are being paid. If a home loan goes unpaid, there is not an incentive for the loan company to make the terms easier or negotiate the balance of the loan. The current loan modification system, the Home Affordable Modification Program, has helped a little over 500,000 homeowners to maintain their homes. However, the Federal Housing Finance Agency is expecting changes in these policies to occur by mid 2012, making it easier for homeowners to modify their home loans.
The difficulty of the Fannie Mae and Freddie Mac process has prohibited mortgage companies from devoting resources and time to help troubled homeowners throughout the United States explore available options to save their homes. Chicago homes in particular have experienced a higher level of foreclosure due to a difficult economy. Foreclosures have affected every income bracket and every housing market.
If you would like to learn more about foreclosures along Chicago’s Gold Coast, you can rely on Sergio & Banks. Give us a call today at 773.235.6100, so we can help you get acquainted with homes in our favorite Chicago communities.