The other night, I found myself in the twilight zone and was having flashbacks to the year 2005.
I was at a neighbors house and he was having a “neighborhood get-together” with a handful of other families. We live in a newly built neighborhood and new people are moving in all the time, so I was meeting a few of our neighbors for the first time. One of them asked what I did for a living and when I answered “oh, Tammy and I are mortgage folks”, it was the trigger where the twilight zone theme started playing in my mind.
If you lived in Arizona in 2005 and attended a neighborhood party, what was the main topic that seemed to dominate every conversation?
In 2005, the main topic that dominated neighborhood conversations all around Arizona seemed to be the recent run-up in home values and “could you believe that so-and-so paid how much for that house?”
Fast forward to 2008.
The main topic of our neighborhood party today?
“Can you believe what so-and-so’s bank did to modify their loan? Their new house payment is only going to be __________ for the next 5 years!”
I left the party scratching my head… I mean – it was full of all kinds of stories about people getting their loan modified. You almost felt out of place there if you hadn’t had yours modified!
I would estimate that a full 25% of all of the people there had already had their loan modified and after the stories that were being told, I wouldn’t be surprised if the other 75% wasn’t far behind them in getting the process started.
Are loan modifications real?
Yes. Yes, they are.
And they apparently are only going to get more popular in coming months if/when the federal government begins to encourage lenders to modify people’s loans.