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More Lenders Working with Troubled Borrowers to Avoid Foreclosure

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By : Cassiano Travareli    99 or more times read
In the past year and a half, about 3 million Americans were able to receive assistance in the form of affordable loans via different mortgage relief programs initiated by both the government and the private sector. But aside from these programs, the Mortgage Bankers Association believes that more and more lenders are now willing to modify mortgages.

One of the reasons being cited for the worsening of the foreclosure crisis is the refusal of the lenders to work with their borrowers, choosing instead to proceed with the foreclosure filing. But their growing inventory of foreclosure homes are making them think twice especially with most of the large lenders filing for bankruptcy and the price of every foreclosure costing them as much as $50,000.

In some cities, the lenders are even seen going to the homes of their delinquent borrowers and offering to change the payment terms of the existing mortgage. Because of their willingness to work out these delinquent mortgages, an estimated 2.26 million Americans were able to stay in their homes and stop foreclosure, according to HOPE Now.

In addition to this, 400,000 distressed homeowners will be able to avoid foreclosure under the latest government-sponsored mortgage relief program launched last October 1. The said program is not compulsory and borrowers will need lender approval as part of the requirements.

Another 400,000 homeowners will be able to refinance to more affordable loans, thanks in part to the $8 billion settlement agreement between 11 states and Bank of America, who now owns Countrywide Financial.

With all these, a significant number of distressed homeowners will be able to hope for the first time in months.

Last month, foreclosure activity nationwide soared by 21 percent compared to August, with at least one filing for every 475 homes. In 2007, there were 2.2 million homes which entered some stage of foreclosure and analysts are estimating more than one million this year.
Cassiano Travareli has been educated in the finer points of the foreclosures market over 5 years.

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