Most Homeowners of Troubled Mortgages are Beyond Help

by San Antonio Attorney

The number of overdue mortgage loans is falling, but the foreclosure crisis continues to be a burden on so many borrowers.

Out of the 952,000 borrowers who are at least 90 days delinquent on their monthly payments, although not yet in foreclosure, 62 percent of them have already undergone some form of mortgage retention option. It appears that it is very hard for their financial situations to be able to keep their homes. Mortgage retention programs were set up by the government and lenders to work with homeowners so that they could save their homes.

The government’s modification program is not effectively helping most of the delinquent homeowners. In 2010, the monthly reduction on mortgage payments could have been around $530. That has decreased to the $450 average today. It is one of the reasons why many homeowners are not doing well with their mortgage payments today.

Banks have become more aggressive too in foreclosing delinquent mortgages, instead of offering more options to borrowers. As the value of homes go up and demand rises, banks can find buyers more quickly nowadays. Retention measures have fallen 42 percent within the last 2 years, but 70 percent of the new payment plans or loan modifications have already gone through some form of loan modification previously.

The Home Affordable Modification Program was introduced in 2009 and has been extended. To date, it has offered about 1.8 million loan modifications. Independent loan modifications have also been undertaken by mortgage servicers and banks, which provided millions of dollars in principal forgiveness and principal discount.

Though the delinquent loans and active foreclosures have diminished dramatically, 28 percent of the outstanding foreclosure inventory is located only in the states of New Jersey, New York, and Florida.

When you are facing foreclosure, look at the option to short sell or see if the lender will accept a deed in lieu of foreclosure. A Real Estate Attorney San Antonio can guide you through the process.

 

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