Foreclosure Victims Crying Out For Help
June 2nd, 2008
The foreclosure crisis is acute. Thousands of foreclosure victims are crying out for help. Today lenders too are in a binge and as such they are willing to change the terms of the loan. But it will not be of help to those borrowers who had delayed too long before asking for help.
Hope Now was launched with the support of the Bush administration. It comprised of mortgage houses and loan servicers. It claims to have helped 503,000 foreclosure victims since its inception last year. During the last three months of 2007 the figures showed a sizeable increase. However Faith Schwartz feels “there is still more work to be done.”
Those in the industry, as well as mortgage counselors, admit that Hope Now has had a sizeable impact on mitigating the foreclosure crisis. The magnitude of the problem however is undeniably overpowering. Mark Zandi of Moody’s Economy.com says the problem is no longer focused on resetting of the ARM. This had been the original bone of contention. But today the main problem is the falling equity of foreclosure houses and increasing unemployment. This is making a mockery of loan modifications because even with reduced monthly payments the foreclosure victims just do not have the money in their pockets. In 2008 and 2009 it is apprehended that no less than 3.9 million house owners will stumble in their mortgage commitments. Of these most probably 2.5 million will surrender their houses to foreclosure.
The hot line of Hope Now continues to be flooded with calls. It is toll free and is operated by a non-profit counseling agency based in Minneapolis – Homeownership Preservation Foundation. Colleen Hernandez of the foundation says that so far they have handled 250,000 calls during the first three months of this year. Many others directly contacted their lenders. Of the callers 30% sought advice and counseling and a third of those (approximately 25,000 individuals) qualified for help. 34% were able to modify their loans while 30% more remain in the stage of negotiations. Thus it is seen that of the 250,000, 8,500 could manage modifications and ward off foreclosure. Another 7,500 were still doing the talking and negotiating. Of the remaining 9,000 many qualified for help but they improved their financial position and became current.
The number of those who benefited from the help of Hope Now in New York, New Fersey and Connecticut has tripled since the last year.
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June 26th, 2008 at 2:12 pm
This blog is great. You are providing valuable information to all homeowners. I would also recommend the following guys mortgagebuyerbasics.c they really helped me out of a sticky foreclosure situation, also before taking up a loan its is wise to understand the foreclosure process. I learnt it the hard way. Don’t repeat my mistake.