Based on the latest news reports, it appears more and more common that many major lenders in the United States are delaying taking a home to actual foreclosure. The homes involved are just as delinquent on their mortgage payments, but the powers that be in the banks seem to have decided that if they delay actually taking back the properties, they may help the overall market for homes already repossessed. This is because they appear to have realized that the more homes dropped onto an already slow market will only further depress prices and that, in turn, could lead to much slower recovery of funds lost by the foreclosure tidal wave. Understand, the banks are not by any means telling borrowers not to worry about making their mortgage payments. Many of the lenders are just going through the default/foreclosure process a little more slowly so as to minimize the effects of the foreclosures on the market.
What could this mean for homeowners in trouble? Well, if your lender is not rushing to foreclosure, it may provide you a few extra weeks at a minimum to try to work out a loan modification or possibly, a refinance of your loan. It is, in effect, more time to work to save your home! Use it! Don't wait!
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