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Millions of Foreclosure Cases Can Receive Help in 2009

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By : Cassiano Travareli    99 or more times read
Private lenders, freelance and consumer advocates had successfully adjusted 208,000 loans last November, thanks to Hope Now. If they can increase their rate to 300,000 aids a month, they could achieve their 3 million-goal to give foreclosure-prevention help this 2009.

Hope Now is offering two workouts that aim to make mortgages more reasonable and definitely more manageable: repayment plans and mortgage modifications.

Repayment plans give more time for late payments. It increased by 6 percent last November.

Mortgage modification seems to be more popular with its 29 percent increase. Modifications decrease or even freeze interest rates making it more successful than repayment plans.

But critics say that these “helps” are really ineffective. Rates are frozen but not lowered, merely increasing the missed payments. Bruce Marks of the Neighborhood Assistance Corporation of America thinks that these modifications were made to fail and end-up in foreclosure.

U.S. Comptroller John Dugan said that 51 percent of the second quarter’s modifications are delayed again. Financial Services Roundtable CEO Steve Bartlett saw that the problem occurs when the foreclosure-troubled situation worsens even after receiving a loan workout.

November workouts declined by 4 percent

Modifications last November was only 99,823, 4 percent lower than October. But this is probably because of the actual decrease of completed re-possessions. Foreclosures decreased by 14 percent at 69,075 thanks to the efforts of the government and some private sectors to delay foreclosure.

In Massachusetts, homeowners are alerted of the incoming foreclosure and are given 90 days to re-pay what is due to them. Then Fannie Mae and Freddie Mac and other major banks halted some foreclosures. These efforts actually help Hope Now in giving the needy affordable plans.

Mortgage Banker’s Association CEO John Courson thinks that even with these initiatives, unemployed borrowers still can not pay for their mortgages.
Cassiano Travareli has been educated in the finer points of the foreclosures market over 5 years.

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