Although the government has created several programs to help homeowners secure loan modifications and avoid foreclosure, recent reports show that the programs simply are not performing as well as intended. With so many people continuing to struggle to maintain their mortgage and keep their homes, why aren’t more people being helped?
Part of the reason is that consumers simply don’t know their options and those that do may not always pursue mortgage relief the right way. Many people don’t know how to negotiate mortgage modifications with their lender and walk away unsuccessful. To make matters worse, many homeowners have fallen victim to mortgage fraud and foreclosure scams.
The other side of the coin is simply that lenders continue to play hardball with mortgage debt negotiations. Many big banks have been found guilty of abusing the foreclosure process or denying qualified loan modification applicants, a problem that had previously gone undetected.
Finding A Solution
The government continues to try and educate consumers about the mortgage relief options and ways to avoid scams. However, it is ultimately up to the consumer to become more educated and seek qualified counsel. A highly underutilized service is those performed by foreclosure lawyers, who are skilled in negotiating with lenders. The government also continues to crack down on big banks lending practices and work to resolve their unwillingness to negotiate.