Homeowners in distress have encountered a myriad of challenges when trying to save their properties from foreclosure. Many have successfully navigated around all the different shoals and rocks strewn along the way. Others, far too many actually, have not. Mortgage lenders and servicers often lack the staff to handle the volume the housing meltdown has thrown at them, industry training of staff is suspect, their systems are in many cases inadequate and it’s also evident that their commitment has been at best lukewarm. The frustration level among struggling mortgage borrowers is understandably high.
California just introduced a fresh mortgage foreclosure protection bill addressing some glaring shortcomings in the state’s current rule book. One provision gives homeowners recourse if they were foreclosed on due to a home loan servicer’s error. They could collect limited damages based on the seriousness of the mistake and in some situations even repeal the foreclosure sale altogether.
The other noteworthy provision prevents mortgage lenders from beginning a
foreclose process until the borrower has received a decision on a loan modification application and been properly notified of it.
Las Vegas valley – including communities of Henderson, Canyon Gate, Summerlin, Mountains Edge, Anthem and Silverstone Ranch – homeowners in distress have endured their share of erroneous mortgage foreclosure activity over the last several years. Nevada has taken some steps to strengthen consumer protections in the home loan arena, but more is needed. Here are two good ideas that would add a dose of much needed integrity to the system, giving the mortgage recipient a more level playing field.
The housing and mortgage collapse has been around for a while and somehow it looks as if state governments are rather slow in reacting to consumer complaints that probably have been coming in a steady stream from the very beginning. Nevada, California, Arizona and Florida have the highest foreclosure rates and likely have the most questionable ones as well. These states should be in the forefront of making sure that if a foreclosure is inevitable it’s done fairly and correctly.
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