Wednesday, April 4, 2007
Mortgage Companies Offering Help Before Foreclosure
I read a couple of articles today regarding mortgage companies and banks taking an interest in helping homeowners who are facing foreclosure, to find other options to keep their house. I was a bit surprised reading it, given the stereotype that lenders have for not seeming to care much about whether the borrower can actually pay the loan they are giving them. However, I was glad to see that at least some lenders are taking a bit of responsibilty for approving loans that are far beyond borrower's ability to repay. I'm sure not all families facing foreclosure are due to an overextension of credit - some may be due to loss of a job, medical bills or other unexpected life-changing events. And I suspect the lender's prime motivation is not so much a gift of kindness from their hearts, but a financial motivation to not get stuck with a house that is losing value in a market that is slow. Still, I am going to look at the bright side of this new wave of cooperation from lenders and hope that it will help many families keep their homes rather than foreclose. What are your thoughts on this subject?