Mortgage Lenders Help Struggling Borrowers
It’s starting to look like the big name mortgage lenders are coming around to the idea that there’s a recession and, what some would call, a foreclosure crisis. It’s not just the subprime lenders and borrowers who are in trouble at this point. Foreclosures are spreading, so now the lenders are going to do something about it.
The six – Bank of America, Chase, Citigroup, Countrywide, Washington Mutual and Wells Fargo – said they will offer a program halting for at least 30 days the foreclosure process for borrowers 90 days or more behind on their monthly mortgage payments.
Together, the six represent about half of the nation’s mortgages.
Officials from the lenders said this morning that by pausing the foreclosure process for 30 days or more, they will have more time to evaluate the loans involved and determine if there is a way to reach an agreement on payment which could keep the borrower in the home.
Perhaps most importantly, this program isn’t just for subprime loans – the mortgages offered with rates that change over time and are given to people with less-than-stellar credit ratings. This is being offered to anyone behind on their payments – a strong indication of how the problem may be spreading nationally, even among prime borrowers.
Even though our leaders have been telling us for the last 7 years that the economy is booming, people are losing their homes left and right. They’ve purchased houses on big hopes of keeping them and now they’re seeing those dreams crumble. They’re paying with credit cards and it’s finally starting to catch up to them. I suppose if the higher ups hadn’t been sitting with their head in the clouds, sending billions of dollars down the drain, they’d have figured out something was wrong way before it got to this situation. Of course, this is an election year, so something has to be done at this point so that one side or the other (equally culpable in my opinion) can take the credit for saving the nation.
Thankfully, many of the lenders seem to be headed by actual humans who see it advantageous to throw a life preserver instead of letting the borrowers flounder. Sure, they’ll get something out of it, but they are still giving struggling homeowners a chance to keep their homes. I call that progress.
Now if only that attitude would rub off on health insurance companies. We might actually make some progress.
Popularity: 3% [?]
Sphere: Related ContentDid you enjoy this post? Why not leave a comment below and continue the conversation, or subscribe to my feed and get articles like this delivered automatically each day to your feed reader.
No comments yet.
Sorry, the comment form is closed at this time.