Comments on: Are Loan Mods Just Another Exotic Mortgage? http://megan-mcginnis.com/784/are-loan-mods-just-another-exotic-mortgage/ Connecting people to the hottest resources in the fields of real estate, hip health & marketing & communications. Sat, 04 Jun 2011 10:28:25 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Vivian http://megan-mcginnis.com/784/are-loan-mods-just-another-exotic-mortgage/comment-page-1/#comment-379 Vivian Fri, 15 Jan 2010 20:35:21 +0000 http://megan-mcginnis.com/?p=784#comment-379 Hi Megan, Your blog is very informative! Thank you, keep it coming! Vivian Lewis .-= Vivian´s last blog ..<a href="http://feedproxy.google.com/~r/VivianLewis/~3/WnK7y2NMs4Y/" rel="nofollow">Quick Tips to Improve Communication with Your kids (2)</a> =-. Hi Megan,

Your blog is very informative! Thank you, keep it coming!

Vivian Lewis
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]]> By: Julian Gonzalez http://megan-mcginnis.com/784/are-loan-mods-just-another-exotic-mortgage/comment-page-1/#comment-378 Julian Gonzalez Fri, 15 Jan 2010 19:39:41 +0000 http://megan-mcginnis.com/?p=784#comment-378 Megan, you are very correct in saying that Loan Mods are a form of an exotic mortgage. All it is, is a ARM with a very low introductory rate! Will the people who cant afford the payment today be able to make a payment in 5 years? They alredy tried that and failed! Thats why the loan was modified!! How will the borrower be able to afford it in 5 yrs? A lot of people have been laid off or have had a reduction of income. Will that change in 5 years? Will they be able to make up the shortage and then surpass that shortage of income in 5 years? Most likely not. We'll see another surge of defaults in 5 years. These borrowers need to increase their INCOME not their equity. It doesn't matter how much equity you have in a home. You cant pay your mortgage with equity. You need INCOME to pay your mortgage. So lets start figuring out how to increase the INCOME and not the equity. .-= Julian Gonzalez´s last blog ..<a href="http://julesgonzalez.com/321/they-drop-out-you-pay-the-price/" rel="nofollow">They Drop Out, You Pay The Price!</a> =-. Megan, you are very correct in saying that Loan Mods are a form of an exotic mortgage. All it is, is a ARM with a very low introductory rate! Will the people who cant afford the payment today be able to make a payment in 5 years? They alredy tried that and failed! Thats why the loan was modified!! How will the borrower be able to afford it in 5 yrs? A lot of people have been laid off or have had a reduction of income. Will that change in 5 years? Will they be able to make up the shortage and then surpass that shortage of income in 5 years? Most likely not. We’ll see another surge of defaults in 5 years. These borrowers need to increase their INCOME not their equity. It doesn’t matter how much equity you have in a home. You cant pay your mortgage with equity. You need INCOME to pay your mortgage. So lets start figuring out how to increase the INCOME and not the equity.
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