FORECLOSURE - 2010

After all the “hoopla” of government bailouts, mortgage relief, and the disingenuous assertions of banks and mortgage companies that they are willing to work with borrowers in an attempt to rescue homes from unnecessary foreclosure, I think it’s time to bring everyone to their senses again.

In the last week, our firm has had to answer three actions in foreclosure for clients. In each case, there were good reasons why the loans were delinquent but, more to the point, the borrowers were making good faith offers to bring the loans current; none of the homes were close to being “underwater,” and all were principle residences. In one case, they were offering to pay more than half of the amount needed to bring the loan current, were able to continue to pay their current  monthly payments, and only needed the remainder either wrapped around the back of the loan, or spread over about 18 months and added to the current payment. They were not even asking for a diminution of the principle balance or interest rate.

In each case, the lender absolutely refused to make any adjustments or discuss mediation even though, in at least one instance, their own attorneys encouraged them to do so. So, if anyone still believes that banks and mortgage companies are reasonable, or can be left unregulated, take heed. The next home up for sale may be yours!