Important Percentages with Loan Modifications
Here's the News:
Loan modification mail marketing campaigns are necessary to challenge the lagging implementation of loan mods directed by the Obama Administration. For too long either Ignorance or Banks that sat in on too many re-defaults stalled any action against foreclosure. While a majority of these failing mortgage loans probably shouldn't have been contracted in the first place, our country is willing and newly able to re-calculate and produce the significant payment drop, longer repayment terms, 2%-5% interest rates and in some cases a forbearance on the outstanding principal.
Of the millions of troubled homeowners eligible to take part in the plan, there has been to date roughly 12% to 15% serviced. Part of the problem has to do with overburdened banks, possibly undergoing a merge, only to discover the irony of being bogged down by the almost 300K monthly foreclosures out of a whopping six million projection.
Home Values Dropping As Much as 50% In Our Own Country
Loan modifications can and are being approved today with historically low interest rates. Homeowners with current sub prime interest loans (above 6%) can save hundreds of dollars every month with the information and program that could easily be outlined for delivery in loan modification mailers. Besides that, the new Obama plan is set up to put the mortgage payment at 31 to 38% of the monthly income which is such a difference from being an at-risk borrower headed into foreclosure.
Unfortunately, the banks are neither trained nor equipped to handle this situation, even if constant changes were not part of the equation. Most of us have figured out how the terrible secret shared by bankers and borrowers engaged in the mortgage free-for-all, was able to stay screened for so long. White noise lulled us along and when the dispatch was finally voiced, few could hear beyond the crashing of industries in its wake.
The original foreclosure prevention program guidelines defined borrowers that owed anywhere up to five percent more than current market value on their loans which also had to be insured by Fannie Mae and Freddie Mac. This excluded a portion of the West Coast where home values dropped by as much as fifty percent. In time the terms were revisited to include homeowners owing up to 25% more than current value. Still more changes are in store for us as unemployment status and credit rating considerations go to talks.
Bring Foreclosure Prevention Right to the Door
Loan modification mail marketing leads are a crucial fit for the program guidelines, using a direct mail campaign to deliver information on the budgeted $75 billion will save a lot of grief for the do-it-myselfers who spend hours and hours on the phone trying to reach the right bank department trying to have a modification package sent out, only to discover weeks later that the package is not going to show up. And why would it when:
*Banks are only required to contact the defaulting consumer, and gather statistics on how many they have reached out to, in order to gain access to the stimulus money. There is no obligation to modify the loan.
These are some of the features that the Obama package has slated for loan modification:
- Payments will be reduced to 31% to 38% of household income.
- Payments negotiated will be in place for five years.
- The loan rate can be raised 1% per year to the conforming loan survey rate present at the modification.
- To reach an affordability level that negates a re-default, interest payments can start as low as 2%, if at that point affordability is still not reached the amortization period can be extended to forty years with a possible forbearance of principal until the affordability target is reached.
- The Treasury will match dollar for dollar the reduction of payment.
Election Cycles and Negotiation
While banks are struggling with pressures to negotiate, outraged Pre NOD leads that feel they are footing the tax bill as they endure timeline threats. Many have circled elected officials to take action against the banks. This month in California, the League of California Cities convenes over a resolution to seize the deposits from banks in almost 500 cities that fall short in foreclosure prevention.
You can see that the need for loan modification mail marketing is clearly in the best interests of everyone. The bankers/lenders that neglected to go beyond writing up statistics of inquiring homeowners must now scramble to do the loan workout.
The beauty of Direct mail in this scenario is that the homeowners that were so callously used for access to stimulus money have mentally moved on and no longer take the calls.
One Program Short of Safety:
Does it appear that our government has moved on, recently the President abandoned previous support for the allowance of a bankruptcy exempting the mortgage which would address the consumers situation created by other collapsed industries.
What is a person to do, with all that was solid falling around him, a loss mitigation data checklist still enumerate102s unsecured debt leads.
While we wait for answers the financial industry which went into a very public collapse, still influences lawmakers on Capitol Hill in every election cycle with hundreds of millions of dollars. It's time for information, it's time for direct mail marketing.
Addressing Market Pressure Points - Response Mailers
