Poll Says Lenders Unable to Comply with Foreclosure Prevention Legislation
In July, I posed the question, “Will Mortgage Companies Take Advantage of the Foreclosure Bill?” With several logistical obstacles just off the top of my head, I predicted that there was no way that lenders were going to be able to handle Foreclosure Prevention Act mandates.
So, I conducted an informal poll to ask the question, “Are the mortgage servicers prepared to help homeowners prevent foreclosure through the ‘Hope for Homeowners’ program?”
The answer: a resounding “No.”
In the last 7 days, I randomly polled 11 different loss mitigation negotiators as to whether or not they’d been briefed on the new FHA “short-refi” program.
Here is a sample of the answers I got?
“Is that a new program?”
“Nope, I’ve never heard of that.”
Here’s the closest I came to someone who had a clue:
“I talked to one guy who had been briefed on it, but he didn’t say much.”
Less than 24 hours after passing “The most important piece of housing legislation in a generation,” according to Christopher Dodd, Barney Frank and Chuck Schumer were imploring lenders to postpone foreclosure actions until October 1st for homeowners who might be able to prevent foreclosure through this program.
According to testimony before Congress, only Bank of America had complied with that request. And for what? It’s clear that nobody is ready to execute on this plan!
The good news is this: you don’t need government assistance to prevent foreclosure on your home.
Thank God for that!
Despite all the whining from politicians about how the lenders have been slacking on foreclosure prevention and loan modifications, we have seen no evidence of that at all.
Over 98% of our clients obtain loan modifications and over 94% of our clients are still in their homes 12 months after we helped them to prevent foreclosure on their homes.
If you’re in financial trouble, behind on payments and want to keep your home, start by visiting the Foreclosure Resolution Center home page.
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October 1st, 2008 at 3:25 pm
The HOPE for Homeowners Act needs to pay less than 36.5 % of the face value of the subprime mortgage back securities. If more is paid the government loses money in the long run and owners of the securities profit now. nomedals.blogspot.com
October 3rd, 2008 at 9:19 am
Question is: “Will they?” With all the talk of “hold to maturity,” it sounds like they’re preparing to pay more.