REDUCE FORECLOSURES?? Why Not Modification BEFORE default???

If a home owner could refinance that home with a high interest rate and negative equity THEY ALREADY WOULD HAVE DONE SO !!!

Inspired by an ActiveRain post, Could This Be The End of Foreclosures? By Dan Polimino.

A RADICAL IDEA TO REDUCE FORECLOSURES!:

A new rule proposed by the CFPB beginning January 1, 2014:

1)    When a homeowner has missed two consecutive mortgage payments, the bank must let the homeowner know about the alternatives to foreclosure. The information must be provided in writing, and describe all the options available from the loan owner – not just the ones that are most financially favorable to the bank.

What would happen if the banks sent a NOTICE to all home owners serviced by that entity about this alternative to default  . . . . . . .  BEFORE THEY HAVE MISSED ANY PAYMENTS. 

Forcing a home owner to ruin their credit before even considering them for mortgage modification has been one of the factors that I believe led to so many foreclosures. 

There are still many home owners who are have homes with a market value of 70% of their mortgage balance, an interest rate of 2-3% higher than market but cannot refinance due to NEGATIVE EQUITY - THE PROPERTY WILL NOT APPRAISE.

These home owners are trapped by their mortgage.  In order to preserve their CREDIT, which is important to the home owner, they continue to pay and pay and pay. 

WHAT ABOUT A LITTLE RELIEF FOR THE MILLIONS OF HOME OWNERS WHO FIT THAT MODEL???

Does the banking industry want to help the economy?? 

STOP FORCING CONSUMERS TO RUIN THEIR CREDIT BEFORE THEY CAN QUALIFY FOR MORTGAGE RELIEF!!!

                                                          

Courtesy, Lenn Harley, Broker, Homefinders.com, 800-711-7988, serving home owners in MD and Northern Virginia.

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