Avoiding Foreclosure
Are you Struggling to Pay your Mortgage?
It is estimated by the Center for Responsible Lending, that 2.2 million homes with subprime loans may be lost to foreclosure in the next few years. That’s 1 in 5 subprime mortgages that are projected to end in foreclosure. And, if the economy falters, it could get worse.
If you are one of those in trouble with your mortgage, it may seem overwhelming. But, don’t give up hope just yet. Unbelievably, banks, mortgage servicers and the Government are all working together to help keep people in their homes.
New Sources of Help
Banks are quickly figuring out that it’s cheaper and easier to relax their hostile standards, then to take on a bunch of foreclosures in a dropping housing market. So, if you are willing and able to keep making your payments, your bank may suddenly seem very eager to work with you. Give them a call and explain your situation.
After a dismal failure in effective regulation, the Government is stepping up it’s game. Senator Christopher Dodd has introduced S.2452, the Home Ownership Preservation and Protection Act of 2007. This may be of little help to current borrowers, but it may help a lot in the future. Effective consumer protection in mortgage lending is way overdue.
Many of the States are way ahead of the Federal Government in providing relief. There are hot-lines, websites, task forces and new legislation designed to curb foreclosures. The States are starting to understand that they are going to be big losers in this housing crisis. As foreclosures rise and property values drop, the States are projected to lose billions in property taxes. And, raising other taxes on strapped constituents, won’t be very popular.
