The Latest & What (If Anything) It Means

Last week I had occasion to attend an annual 3-day conference on foreclosures and related items and, for the first time, found heavy emphasis on how lenders can avoid foreclosing on your home. That's right--the emphasis was heavily weighted to loss mitigation. What that purports to mean in plain English is the lenders are now starting realize that it behooves them to bend over backwards to work with their borrowers and find a way to avert foreclosure whenever it's reasonably possible. This does not mean in every case, they will agree not to foreclose. What it does mean is they have belatedly come to the conclusion that as long as things are so bleak, they would be smarter to utilize such things as forbearance or loan modification, to name a couple of methods, to try to keep the homeowner in his/her house.

Separately, you'll recall a couple of weeks ago I mentioned new action on Capitol Hill directed at legislation to ease the burder of homeowners. More plans have been offered up, but so far, nothing of substance has happened. Members of Congress favoring the lenders have gummed up the works, and those trying to help the beleaguered borrowers have been left trying to get something done against the efforts of the former. Net result--refer to the start of this post and talk to your lender.

New Relief? Maybe....

Well, it now seems that everybody is jumping on the bandwagon. Almost makes you think there is an election coming up. Oh, yeah! That's right! There is! Yesterday (4-3-08) a congressional committee announced it's working on a new plan that will include foreclosure relief in a novel form--money to help pay for more foreclosure counseling services by the lenders. Assuming the proposed bill becomes law, it would include a provision for $100 million to be used buy lenders to help initiate and/or expand counseling services to their borrower clients facing default and foreclosure. It's a long way from law and lots can change between now and whenever eventual passage and Presidential signature takes place, so don't start getting too excited just yet. But, as things develop, I'll keep you posted.