CNBC’s Diana Olick reports that mortgage modifications geared to help distressed home owners continue to fail while home foreclosures continue to rise. Some may think that this is because home loan modifications are dwindling in number, the real case is that many borrowers do not qualify and the banks prefer to push these loans to foreclosure. The hard truth is that with the delinquencies in the millions and the loan modifications only in the tens of thousands, we know that the vast majority of troubled loans will go to foreclosure.
Recent reports regarding the status of the mortgage aid programs laid out by the Federal government is that they have fallen far short of expectations. As of November 30, the monies spent on loan modification programs was just $2.8 billion of the $46 billion devoted to the housing crisis. One such mortgage aid program was the Federal Housing Administration Short Refinance program, which intended to help 500,000 to 1.5 million loan modifications only helped about 400 homeowners. With only a .06% of the money set aside for mortgage aid spent, what are ailing homeowners to do?
Early this year, a congressional oversight committee reported that the loan modification program aimed at helping distressed mortgage owners is failing. Neil Barofsky, the inspector general for the government’s bank bailouts, has labeled the record for the loan modification as “nothing short of abysmal”. He credits the failure to the fact that regulators are afraid to rein in or impose penalties on the mortgage servicers.
USA Today recently reported, complaints against debt collectors are growing faster than in any other industry. Consumers are finding it hard to pay their bills such as their credit card debt. With the recent financial crisis, many consumers have had to use credit cards to get by. This mounting consumer credit card debt has lead to an increase in creditor calls. The increase in calls has also generated an increase in the abuses by collectors trying to collect on the credit card debt.
During the financial crisis in 2008, the U.S. Federal Reserve bailed out major banks by providing them with over $7.7 trillion in loans. Known as the TARP bailout, these monies were intended to help the banks offset their massive losses caused in part because of the mortgage lending practices they implemented. So if the banks where protected, what federal protection do mortgage owners have? The only protection distressed homeowners are provided with will be filing under federal bankruptcy.
For those that are facing an imminent foreclosure one of the hopes they have been offered by the government is loan modification. While this program may sound perfect sadly for most people this program will not help them. Loan modifications in fact are voluntary and in most cases only temporary. If you want to find a permanent solution to your problem then you may want to take the time to visit San Diego foreclosure attorneys to see what your other options might be.
Your mortgage is behind, you have multiple liens on your property, credit card debt you cannot pay, and no way out. This is a familiar scenario for those that have lost jobs in the current recession, and have been borrowing money in order to get by while they try to find a job. Whether they find a job or not, many times people have sunk themselves into so much debt they feel like they can never get out of it. If you have tried everything and come up empty a Riverside bankruptcy attorney may be able to help you find the right solution to your problem.
There are a lot of different ways to avoid bankruptcy, many of which should be tried before you take the plunge into the bankruptcy courts. There are organizations that can help you with your debts as well as you can hire a personal bankruptcy attorney to help you do the same thing. Debt negotiation is one of the most common alternatives to bankruptcy and works well for some people.
While no one wants to get in a situation of filing a bankruptcy, the simple truth of the matter is that you may have no choice, the best way to find out if bankruptcy is your best or only option is to contact CA bankruptcy lawyers that can assess the situation for you and tell you what your best options truly are. The purpose of a bankruptcy attorney is to do more than to just file bankruptcy papers but to make sure that the course chosen for you is one that will be a good fit for you and your situation.