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Wondering what's happening with home affordability? See "The income needed to buy a home in the top 50 metro areas" covering the third quarter of 2023.

Wondering what's happening with home affordability? See "The income needed to buy a home in the top 50 metro areas" covering the third quarter of 2023.

Is a Shared-Appreciation Modification really a good deal?

Q: What should we really consider when trying to determine if the (SAM) Shared Appreciation Modification would be a fit for us? We are currently in foreclosure did not qualify for the HAMP but have been offered the SAM.

A: It's hard to say how valuable the SAM might be for you. The answer depends upon how much potential appreciation you will need to give up, the new interest rate on the modified loan, whether you will be responsible for any shortfall in the investor's expected return, any fees which might be included and other factors. If you have no other options and you wish to save your home, this might be an avenue to explore, but you'll want to make certain that it provides an actual, permanent solution rather than a short-term one.

Ask the expert
Keith Gumbinger
Keith Gumbinger
Mortgage Expert
Vice President, HSH.com
About Keith: Mortgage market observer and analyst with 35 years experience... (more)
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Q: What loan amount does a mortgage need to be for it to be considered a Jumbo Loan?
NOV 28, 2023
A:

This question used to have a simple answer, since there was a "bright line" definition -- the conforming loan limit....

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Q: What does the term ‘conforming’ mean?
SEP 21, 2023
A:

Simply put, a "conforming" mortgage "conforms" to a set of standards so that the loan can be eligible to be sold to Fannie Mae or Freddie Mac.

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Q: Can you recommend a company specializing in mortgage modifications?
AUG 29, 2023
A:

No, we're not in a position to do that, but you should be careful when reviewing offers that haven't come from your mortgage servicer.

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