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More Money Given to Banks for Anti-Foreclosure Programs

Posted By admin || 19-Jun-2009

According to an article in the Star-Telegram, the government is handing out another $3.1 billion to a group of mortgage servicing companies as an incentive to modify loans to combat foreclosures.

The article said:

The department (Tresury Department) also added one company, Residential Credit Solutions of Fort Worth, Texas, to the program. It is scheduled to receive up to $19.4 million, and joins 15 other mortgage companies approved to participate in the program.

The biggest adjustment was made for Countrywide Home Loans Servicing LP, part of Bank of America Corp., which received an increase of $3.3 billion, bringing its total to $5.2 billion.

It seems that our government has failed to read the writing on the wall, the mortgage companies are not doing enough to modify toxic mortgages and prevent foreclosure, to justify more spending on this program. This foreclosure prevention program was suppose to help over a million homeowners; but so far it has mostly managed to frustrate scores of homeowners facing foreclosure.

Many homeowners facing foreclosure find themselves running out of time as they wait in time consuming phone queues reminiscent of Soviet-style bread lines and at the end of the day they still haven't connected to someone who can help them avoid foreclosure.

After months of hand wringing and foot dragging, only 50,000 homeowners are enrolled in "three-month trial modifications" according to the Treasury Department. As if waiting for the foreclosure axe to drop is not nerve-wrecking enough, now homeowners need to wait to see if their "trial" modification will be transformed into a permanent arrangement.

If you're a homeowner facing foreclosure you should try everything you can to save your most important asset--your home and that includes considering your bankruptcy options. Contact a Dallas- Fort Worth bankruptcy attorney to find out how bankruptcy can save your home from foreclosure .

Categories: Foreclosures
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