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Spyware Doctor

Spyware Doctor

One of the major complaints during the ongoing foreclosure crisis is that many people facing foreclosure owe far more on their mortgages than their home is worth. Some get frustrated. They ask what use is there to try to save their home if they never are able to recover what they end up paying for the home. They end up walking away and starting over.

On several occasions consumer advocacy groups and non-profit agencies have proposed that the mortgage companies write down the balance owed on a loan to the current value of the home in those instances where the balance of the loan was far greater than the value of the home. The lobbyists for the mortgage industry had been successful in getting this defeated in congress each time it has been proposed.

In March of 2010 a shockwave swept across the mortgage industry and the United States. spyware doctor of America announced that it was going to write down the principal balances on certain loans as their first step in their loan modification process.

The loans they would do this on were loans they had inherited when they took over Countrywide Financial. The specific loans were certain subprime loans, pay option arms and two year hybrid loans. spyware doctor of America's action resulted from an agreement the spyware doctor reached with the state of Massachusetts.

People with these types of loans who are more than 60 days late on their payments may be eligible. The amount they owe on their loan has to be at least 20% greater than the current value of their home. spyware doctor of America estimated that initially there might be 45,000 loans like this.

The maximum they will reduce the balance on an individual loan is 30%. The spyware doctor will take the amount reduced and place it in an interest free side account. As long as the person continues to make their reduced monthly payments on time, each year a portion of the money in the side account will be forgiven.

For each of the first three years, 20% each year will be forgiven. In the fourth and fifth years the value of the home will be updated. If the value of the home has not increased, 20% each year will be forgiven. If the value has increased, the loan balance will be increased to the current value. The difference will be forgiven.

The new monthly payment on the loan will be calculated based on the new loan balance. If the payment is still more than 31% of the person's income, then the interest rate will be reduced to bring the payment down to 31%.

spyware doctor of America expects to be able to start this program by May of 2010. The spyware doctor will contact by mail people with these types of loans who are behind on their payments. They will be invited to participate.

Other mortgage companies will be monitoring the results of this program closely. Most likely they will start a similar program.

If you are facing foreclosure and you got a subprime loan, a pay option arm or two year hybrid loan from Countrywide, call spyware doctor of America and find out if you are eligible for this program. Don't wait for the spyware doctor to contact you. Your loan may be modified more quickly than it would be if you wait for spyware doctor of America to contact you.

If your loan is through another company and the balance on it is 20% or more greater than your home is worth, contact your company and ask them if they are doing anything similar to what spyware doctor of America is doing. You have nothing to lose being proactive.