I've been saying it, but I think it bears repeating-if you’re the owner of a distressed property, and you’re hoping loan mediation/moderation may be the way to go to get your loan down, you may need to think again.
Recent data from the National Consumer Law Center suggests that loan servicers are in no hurry to actually do much to help modify a loan. The report confirms something that I’ve been talking about for awhile-there isn’t really much incentive for banks to actually bother to work on modifying a loan with you. The reports was brought to my attention because I keep an eye on anything that cover the California real estate market, which was one of the areas examined by the NCLC. Basically, the loan modification guidelines mandated by the government have no teeth, and the way the programs are implemented make it very difficult to jump through all the hoops. And I don’t mean financial hoops-I’m in FAVOR of requirements that help insure the soundness of a buyer's financial background. In this case what we're seeing are procedural hoops (red tape, bureaucracy, whatever you want to call it). The report goes on to recommend MANDATORY loan modifications-meaning the government will require lenders and mortgage servicers to work with borrowers in a timely manner. To read the report for yourself, follow this link http://www.consumerlaw.org/issues/foreclosure/index.shtml
But believe me, if the day ever comes that the current loan modification "guidelines" become "rules" with some teeth, it will be too late for many homeowners facing their foreclosure crisis TODAY. If you're in that situation, it may be time to explore all your options.
Rebellious Regards,
Larry
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