Too Little, Too Late?

The news today is that 6 top mortgage lenders and servicers have launched a new program to help homeowners in forclosure work out new affordable terms that may help them save their house (http://www.cnbc.com/id/23126374). Foreclosure proceedings are halted for 90 days while the homeowner and the forementioned lenders try to find away to get the homeowner back to making on time payments.

Hopefully, this will help some of the homeowners that might lose their house. For others, it still won't help. With housing values going down, many borrowers owe more than their house is worth. Or they have so many issues with their credit that lenders just won't take the risk. I have been telling clients and anyone who will listen to please get anyone they know who is having trouble with their mortgage payments to someone that can help. Once the borrower is in forclosure, the only one that can really help them is the holder of the note, the lender or servicer.
As always, this latest help comes to late for the thousands of former homeowners that have lost their house and their good credit already. In this case over reaction is better than slow reaction because there is still unknown thousands of foreclosures waiting to happen. Can we bring out the next program to help these people now? Because if anyone should know how bad it going to be, it should be the one holding the notes that will never get paid.

Ever hear the expression "The future is now"? How about " Now. Or there won't be a future"?


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Dan Tenchall
Great Lakes Mortgage Funding
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