Friday, January 22, 2010

Many are rejecting loan modifications

Homeowners are opting to flee rather than accept loan modifications that might still leave them underwater on their mortgages.

Desperate homeowners scrambling to get a loan modification through federal foreclosure relief programs are beginning to shun the offer, opting for a strictly business approach to the dilemma -- walking away.

Because the majority of modifications don't reduce the principal payment on loans made during the overpriced boom years, people with underwater mortgages could still be drowning 10 years out.

The better option for those borrowers, some say, is to take the hit now and attempt a short sale, deed in lieu, or even allow their home to go into foreclosure.

http://www.miamiherald.com/business/story/1438896.html

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