Better Terms for Mortgage: Negotiate

Yesterday the US government unveiled that Freddie Mac and Fannie Mae would modify the terms for borrowers as long as they are 90 days late with their mortgage repayments, however some Americans are unhappy that it will only help the homeowner that have already run into trouble and not the homeowners who have carefully balanced their money through hard times to make sure the mortgage is paid.

With 90 percent or more of US homeowners currently up-to-date with their payments there will be no help for them, it seems the help is only there if you have been carless with your money and run up huge debts you can’t afford, it does seem unfair that you have to push yourself into worse debt just to get help from the Federal Government.

Citigroup also this week announced they are will also be helping people who fall behind in their mortgage payments in a scheme called “pre-emptive campaign” Citigroup have said they want to reach out to its distressed borrowers in distressed area’s which include, Ohio, Nevada, Michigan, Indiana, Florida, California and Arizona.

The following banks have all modified their mortgage portfolio to help such borrowers, HSBC, JPMorgan Chase, Federal Deposit Insurance Corporation after the IndyMac takeover and Bank of America who took the mortgage portfolio from Countrywide that was full of bad debt.

Source: NY times