OT: New Loan program for those in need of Loan Modification

[Craig Naylor]

As reported in American Banker, Prospect Mortgage, a growing lender managed by former Indymac and American Home executives, will be rolling out a program named, "Second Chance" in order to provide loans to borrowers who couldn't pay them back in the first place. The program will not be funded by taxpayer dollars, but instead by redistributing the 6% Realtor commissions: 4.5% goes to both Realtors (2% for listing agent and 2.5% for selling agent), 0.5% towards consumer counseling and credit repair services, and 1% toward program/transaction facilitation. "All consumers who lose their primary residence as part of the Home Affordable Foreclosure Alternatives (HAFA) initiative because although they are generally eligible, they either do not qualify for or fail an attempted loan modification" will benefit, as will families that were foreclosed on before the government's MHA loan modification and/or foreclosure alternatives programs were available, got defrauded by a loan modification scam operation who took their money but failed to get them a loan modification, etc. will qualify for the program. Borrowers who were foreclosed upon will be able to borrow money in two years instead of waiting the traditional period, and will be counseled and trained during that period. Prospect Mortgage can be reached at 1 800 277 3665