Lenders are in a bind. With foreclosures increasing every day, their REO departments are overloaded. Foreclosure is expensive and banks are in no mood to be property owners. So, why not just try to work thing out with the distressed borrower? That seems to be the line of thinking as major lenders have announced that they will put foreclosures on hold for 30 days. During this time they will work with the borrower to figure a workable solution for both parties. This applies to all kinds of borrowers, not just subprime. From MSNBC:
These lenders say they will contact homeowners who are 90 or more days overdue on their monthly mortgage payments. They will be given the opportunity to put the foreclosure process on pause for 30 days while the lenders try to work out a way to make the mortgage more affordable to the homeowner.
To clarify, this appears to be a voluntary program and is not a “law”. Which means a lender has the last word and is not under any obligation to award the 30 day freeze. If you think you qualify contact your lender directly.
Welcome to the Arizona Mortgage Guru blog, a great resource for all your home financing needs. If you're new here and like the content, you can subscribe to my RSS feed to get regular updates on all things related to mortgages. Thanks for visiting.
Foreclosures Going to Rise?
Freddie Mac Suspends All Foreclosures
Facing Foreclosure? 12 Things You Should Know When You Call Your Lender
Related posts brought to you by Yet Another Related Posts Plugin.
on Feb 12th, 2008 at 8:54 pm
Thank Gawd! I’m wiping stress sweat off my brow and allowing my guts to unclench. It’s about time the lenders woke up and realized they need to be a little more creative.
on Feb 14th, 2008 at 9:45 am
So not every lender has to give that 30 day freeze hmmm……. So what good did it do passing the bill to do so right?
on Feb 14th, 2008 at 11:51 am
Port Orange Houses,
This was a voluntary agreement. Not a bill passed by Congress.