“Lenders promise streamlined workouts”

Sorry, it’s just not enough, and when you read the details of this article, you’ll see it’s really a lame effort on the part of these major lenders to do anything at all to make a dent in the foreclosure statistics.

Here are some of the “promises” they are making:

  • “Inform homeowners within 45 days whether their application for a workout has been accepted or denied.” 45 days?!? By the time most people learn about a pending Michigan foreclosure sale, it’s only 3-4 weeks away!
  • “Attempt to contact homeowners with subprime adjustable-rate mortgages (ARM) and other homeowners with ARMs that have a probable risk of default 120 days in advance of reset.” Attempt?!? They can’t even keep up the homeowners that are calling them on their own – how will they have time to initiate the contact and then do something about it?

Here’s the reality of how bad things are about to get (as discussed in that article): 2.2 million borrowers with subprime loans will face foreclosure proceedings between Oct. 1, 2008 and Sept. 30, 2011.

I hate to be all doom and gloom, but the simple facts show the HOPENOW guidelines fall well short of making an impact to help families keep their houses. It’s best to stay focused on the future and figuring out how to make steps to a brighter future vs. “hoping” your lender will give you a viable workout plan.

What does this all mean? Well, if you’re facing foreclosure on your Michigan house, you’re certainly not alone. Thankfully, at least we’ve got an excellent record with all of these lenders (and more) with getting them to short-cut this whole process and go directly to a short sale solution (let you sell it for less than what you owe).

Joel

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