Survey Reveals Interesting Opinions with Regards to Mortgage Default.

Are you considering to stop making your mortgage payment? Do you know your options?

A recent survey revealed that most Americans find it unacceptable for people to stop paying their mortgage. This survey was taken mid first quarter of this year so the data is fairly recent. There were some participants that felt that they wold feel differently depending on the person’s personal situation.

Another interesting fact is that around 21% of those survey said their mortgages were more than the value of their home and 48% said their homes had lost some of its value. The survey also revealed a geographical difference when it came to understanding mortgage defaulting. It seems that people on the East coast frown upon walking away from ones mortgage than on the West coast. The Midwest of course came right in the middle as their name foretold.

California has many areas that have suffered heavy loses in home values. Then again home values rose at such an unrealistic pace that this is actually more of a correction than a loss. Thank fully California has several programs designed to help it’s residents from losing their home. Though I’m sure that the government is going to make you jump through some hoops to qualify. Here is a small list of some of the programs in our state of California…

1. Unemployment Mortgage Assistance (UMA). This program is tailored towards helping homeowners who are dealing with job loss and are facing foreclosure due to their lack of income. If eligible, UMA could help these homeowners for up to six months with a monthly benefit of up to $1,500 (or 50% of the total monthly mortgage, whichever is less).

2. Mortgage Reinstatement Assistance Program (MRAP).This program is designed to help homeowners who are past due on their mortgage payments. In these cases, if eligible, CalHFA will provide funds of up to $15,000 (or 50% of the delinquent amount, whichever is less) to reinstate the past due amount in order to avoid foreclosure. However, this form of subsidy requires a dollar-for-dollar match from the lender, servicer, insurer and/or borrower.

3. Principal Reduction Program (PRP).In this program, if eligible, CalHFA will provide funds (which will have to be matched by the participating lender/servicer) to reduce outstanding balances for owners of homes with negative equity. The goal is to reduce principle balances to the current market level.

4. Transition Assistance Program (TAP). This program is intended to assist homeowners who can no longer afford their homes in relocating to other housing arrangements as part of a Short Sale or Deed-in-lieu scenario.

I hope this information was helpful to you and keep checking back often as we strive to bring as up to date real estate market information and information on many other things not real estate related. Our goal is to keep you informed and entertain you as well. Hope you’re having a great and day and we’ll see you soon!