The foreclosure crisis has gone on long enough.
Too many Americans have suffered the devastating effects of mortgage debt and foreclosures.
Not only do foreclosures leave many people without a place to live, but there are many far reaching effects that go beyond housing troubles.
Financial ruin, divorce and bankruptcy are all common among foreclosure victims.
After nearly two years of rising foreclosures, enough is enough.
What exactly is going on and how can we fix it? Lending Practices Although economic conditions play a role in the housing market and foreclosure crisis, we can't attribute job loss and unemployment for the entire problem.
As the plague of foreclosures continues to creep around every corner, further investigation has revealed some interesting facts about the lending industry.
Law requires that mortgage lenders follow four steps before initiating the foreclosure process.
First, the lender must attend a mediation hearing.
Second, the lender must provide proof that they own the note and loan to the home in question.
Third, they must make an attempt to negotiate the terms and conditions of the loan.
Last, the lender must be found to have acted in good faith throughout the process.
It has been found that at least two of these four practices have been routinely violated by several lenders in many cases.
There have been instances in which lenders attempted to conceal evidence of having sold the note to investors prior to the foreclosure process.
Many big banks have also been found to enter mediation with stubborn and unaccommodating attitudes towards mortgage modifications.
Why? Lenders want to make money, or at least minimize the money lost when a home enters default.
Although some lenders are adverse to the foreclosure process and the hassles it entails, many lenders are simply more risk seeking when it comes to defaulted mortgages.
In many cases, lenders are willing to play hardball and forgo modification efforts because they know they can recoup their money through federally backed mortgage insurance.
Government Help The federal government hasn't take the foreclosure crisis lightly and is continuing to work to resolve some of the problems.
The Home Affordable Refinance Program was developed to make obtaining a mortgage modification easier for homeowners.
While some homeowners have been able to secure refinancing agreements to help stave off foreclosure, many more are left with lenders who refuse to negotiate or offer help.
For now it seems as though more helps is needed to regulate lenders and entice lenders into becoming more flexible with their modification efforts.