Foreclosure prevention programs fall short
April 23rd, 2008, 10:38 am · 1 Comment · posted by mistywilliams
Nationwide, 70 percent of seriously delinquent borrowers aren’t in any type of loan work-out program despite ramped up foreclosure prevention efforts by lenders and government officials.
That’s according to a new study by the State Foreclosure Prevention Working Group, which tracked data from 13 of the country’s largest subprime mortgage services from October 2007 to January 2008.
In that time, the number of distressed borrowers in loss mitigation has risen but has been matched by an increase in delinquent loans.
“The collective efforts of servicers and government officials to date have not translated into meaningful improvement in foreclosure prevention outcomes,” the report states.
The study also noted that loss mitigation departments at banks have become severely overloaded with delinquent loans — a phenomenon many Valley real estate agents are reporting.
Arizona Attorney General Terry Goddard also said this week that the state needs to explore new approaches to preventing foreclosures.
“We continue to see a rising number of foreclosures in Arizona, which is a significant drag on Arizona’s economy,” Goddard said in a statement.
April 28th, 2008 at 9:53 pm
I don’t think any type of assistance should be given to all the people that decided to stick it the bank, and stick it to their neighbors. These people chose their loans. They agreed to pay them, knowing that the interest rate would ajust and the rates had no where to go but up. The market rise and the market decline was caused by greed. I have some neighbors that wouldn’t think of down sizing to a less expensive large SUV but they are walking away from their mortgage. It’s dishonest and it leaves everyone else to pay the price.