Stopping Foreclosures – The Broken Promise

November 26, 2008

foreclosure signFederal and state officials, eager to stabilize the housing market, have leaned hard on mortgage companies to honor their pledges to help more homeowners avoid foreclosure.  Unfortunately, a new survey released Tuesday by the non-profit California Reinvestment Coalition shows the efforts have produced only modest results.

For all the promises of leniency, foreclosure remains the most common outcome for borrowers who come to mortgage counselors seeking easier loan terms, according to the September survey of mortgage counselors statewide in California. Not only that, but counselors complained that lenders frequently give callers the run-around, lose documents or are slow to respond to borrowers’ inquiries.  Read the full story in the Silicon Valley Mercury News.