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.
A 25-year expert observer of the mortgage and consumer debt markets, Keith Gumbinger has been cited in thousands of articles covering a wide range of consumer finance and economic topics in outlets ranging from the Wall Street Journal to the Bottom Line newsletters. He has been a featured guest on national broadcasts for CNN, CNBC, ABC, CBS and NBC television networks and has been heard on NPR and other national and local radio programs. Keith is the primary researcher and writer for HSH.com's MarketTrends newsletter and has authored or co-authored a number of consumer guides on mortgages, home equity, refinancing and more.