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Voluntary Foreclosure Prevention Programs Failing Homeowners

Posted By admin || 26-Jan-2009

According to a report by the National Association of Consumer Bankruptcy Attorneys, foreclosure prevention programs currently being implemented by mortgage companies are failing to prevent foreclosures for a significant number of homeowners.

Here's an excerpt from the report:

According to data collected by Valparaiso University School of Law Professor Alan White, voluntary programs reduce the principal balance owed in less than 10 percent of modifications while more than half of modifications capitalized unpaid interest and fees into larger and more drawn out debt on the back end of the mortgage. White also found that about 35 percent of voluntary mortgage modifications reduced the homeowner's monthly payment while 45 percent of the modifications increased the payments.

Forty-five percent of voluntary mortgage modifications INCREASE the monthly payments of homeowners struggling to avoid foreclosure . Should we be surprised? These are the same companies that issued the toxic mortgages in the first place.

This is why it is important for homeowners facing foreclosure to explore their bankruptcy options while they are seeking mortgage modification outside of bankruptcy. If you're facing foreclosure and currently attempting to modify your mortgage outside of bankruptcy, don't let your mortgage company catch you unprepared. Explore your bankruptcy options today.

Categories: Foreclosures
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