The Allmand Law Firm, PLLC Difference

Unlike most bankruptcy firms in the Dallas / Fort-Worth area, Allmand Law Firm, PLLC spends the time to understand the complete financial picture for every one of our clients. We provide resources, tools and advice to address the unique needs of North Texans.

Are Government Foreclosure Prevention Programs Failing the American Homeowner?

Posted By admin || 1-Jul-2009

The government has already "invested" over $75 billion to prevent a millions of foreclosures. But has that plan actually reduced the amount of foreclosures? The short answer is no.

The long answer is a little more complicated. Originally, the government's foreclosure program was supposed to save over a million American homeowners from foreclosure; but so far, only about 190,000 homeowners have received modifications designed to stop foreclosure .

Millions more wait (often in vain) for a return phone call or letter from their lender regarding a modification of their mortgage so that they can avoid foreclosure. Right now there are 2.4 million Americans in foreclosure with very little hope of receiving help from the foreclosure prevention plans created by our government and underutilized by lenders.

So, where's the problem? The problem is that lenders do not have a strong incentive to participate in these foreclosure prevention programs. The government has agreed to give lenders $1000 for each foreclosure they prevent; but lenders are hardly jumping at the opportunity.

Also, the foreclosure prevention program is voluntary, which means that the industry that created this foreclosure mess is not required to play an active and decisive role in undoing the mess. The result is that many homeowners facing foreclosure are left waiting in limbo, hoping that their lender will voluntarily agree to modify their mortgage. Most of them are waiting so long that they end up succumbing to foreclosure despite their best efforts. Don't let this happen to you.

If you are facing foreclosure and want to save your home, speak with a Dallas-Fort Worth bankruptcy attorney to find out how bankruptcy can help you.

Categories: Foreclosures
Blog Home