US mortgage relief is sought by borrowers
While the US subprime lending crisis continues, third quarter reports say about 50 per cent of loans modified were subprime ARMs giving some relief.
The US subprime lending has the entire world's attention, as borrowers face incredible risks as adjustable rate mortgages continue to fall to foreclosure. But, new data out of Mortgage Bankers Association shows that about half of modified loans in the third quarter of 2007 were subprime loans.
The report put out on Thursday shows that some 54,000 loan modifications were started in 2007's third quarter. Of those about 13,000 were subprime loans. About 18,300 of these borrowers would establish repayment plans that would modify the monthly payment of the borrower.
A modification in a home loan can be any type of change which includes interest rate adjustments or changes to the overall length of the loan.
CNN Money reports that Jay Brinkmann of Mortgage Bankers Association said, "In our report, we wanted to see what borrowers were truly at risk."
At risk borrowers are those that had previous problems including delinquency in repayment, loan modification plan entrance or those who started foreclosure.
It is also important to point out that some 384,000 borrowers during the third quarter began foreclosure process.
This information is coupled by a large drop in the number of homes being built in the US. Housing starts dropped considerably. Many economists believe that true recession signs are in these stats, confirming that it is likely the US is in recession or is closing in on it.
The Hope Now program established by the government has helped to pull some 370,000 US borrowers who are struggling, out of the grips of foreclosure in 2007. In all, these repost show that some subprime and other borrowers in need of help in US are getting it.