The Smart Real Estate Show July 7 2014.

Our current market for Home Sellers and Buyers. Dedicated to helping everyone with investing in Real Estate either for personal use or as an income producing property.

Today we discuss the current market and how banks are not helping people with their mortgages. Are Loan Mods good for a homeowner? Statistics show that less than 6% or the country will actually receive a loan modification that will actually help the homeowner. Most homeowners do not realize these stats, and also don't realize that if they are on an interest only loan, the loan modification will include Principle, Interest, Taxes, and Insurance. Homeowners also do not realize that a loan modification will not (over 98% of the time) reduce their principle balance.

Silent Second Loans are very popular with a loan mod. Meaning if the lender does stop collecting on a second mortgage or note, most of the time the balance of the second is deferred to the end of the loan. Meaning, the homeowner still owes the money they simply do not pay on the note till either the property sells, or the loan matures and the balance of the second note is due in full.

Dumping Your Debt. Remember, the banks are in business to make money. This being said, if you are one of the lucky ones to have a loan modification approved, you most likely not paying less for the property overall. The loan mod is designed to help the homeowner have more affordable payments, not reduce their debt.

Banks are reducing their Debt. Yes, that's correct, banks are reducing their debt and increasing their profit by showing Wall Street that their portfolios are in good shape. This is done to stimulate the market and get people to invest in Bank Stocks and Securities. How are the banks doing this? By manipulating their books and showing more homeowners paying their mortgages on time, or by removing the debt from their portfolio.

Banks want to help Homeowners. The best way for a bank to help a homeowner is to allow a short sale. That's right. If the bank can remove the debt from their portfolio then the bank shows less liability, thus stimulating more stock purchases.

Dump Debt Like The Banks. You as a homeowner have the opportunity to dump debt like a bank. If you have a shortcoming and are having a hard time making your mortgage payments, now is the time to dump your debt and look at the future. Remember, the Federal Government and Lenders have programs in place to help homeowners get a Fresh Start.

Real Estate Is An Investment. Like any other investment, if the investment is loosing money why would you continue to invest time and money? You wouldn't, now would you? Most likely not. So why continue to spend good money on a bad investment when you can have that debt relived and start investing in something that will make you money.

The Future Is Now. As the Mortgage Debt Forgiveness Act expires this year, and most of the debt forgiveness programs are coming to an end, now is the time to to think of your future. Dump your debt and start building wealth for your future.