The mortgage lending industry has struggled to retain profitability throughout the foreclosure crisis. Although their role in the overall problem has lead to serious consequences for homeowners, most of it was driven by simple business strategy. After much criticism, and some convictions for fraudulent practices, many lenders are beginning to open up to alternative solutions and ideas to reach out to struggling homeowners.
Ideas For Change
Besides being ordered by the government to become more flexible in refinancing and loan modification approvals, many lenders are coming up with their own ideas for helping homeowners avoid foreclosure. Offering fee waivers for refinancing costs has brought more interest in mortgage refinancing than in years past. Lenders are also opening up to the idea of short sales and allowing more homeowners to participate in the process despite previously disqualifying factors.
Lenders in certain areas hardest hit by foreclosures are also dragging their feet by delaying foreclosure proceedings, in order to allow homeowners more time to resolve their debts. Some are also turning the other cheek to delinquency statuses, allowing those in default a chance to get caught up on missed payments in exchange for the lender paying home insurance for a period of time. While none of these ideas are new or innovative they do signal a possible change in tides, one that is much needed if the housing market is to recover.