As Ontario loan modification lawyers, we were disappointed to see fresh evidence that the housing crisis is not going away. On the heels of news earlier in the same week that new home sales have dropped came a post on the Washington Post's Political Economy blog about the number of mortgages in default or foreclosure. According to data released Aug. 26 by the Mortgage Bankers Association, one tenth of American mortgage borrowers have missed at least one payment this summer. Nonetheless, the report said, mortgage defaults are down slightly from the first quarter of 2010, leaving observers with mixed news about the state of the housing market.
This quarter, 4.57 percent of mortgages were in any stage of foreclosure. This is a drop from the first quarter's 4.63 percent, but still higher than the 2009 second-quarter number, 4.3 percent. As such, foreclosures can be said to be up overall, but with some evidence of a drop coming. Further potential good news can be seen in drops in seriously delinquent loans and mortgages at least 90 days past due, both of which are typical precursors to a foreclosure. However, a spokesperson said the Association had also seen a rise in new delinquencies lately, suggesting that more trouble may be coming. The end of the federal home-buyer tax credit in April may also be considered a problem, the article suggested. In all, the spokesperson said the slight decrease in new foreclosures would probably not last, but still described the report as "cautiously optimistic."
Our Perris loan modification attorneys are disappointed that the housing market is not getting better, but we wish we were more surprised. It has been clear for a while that any housing recovery is strictly on Wall Street, not in hard-hit areas like the Inland Empire. Near the end of the article, the author notes that unemployment is around 10 percent -- the same percentage of homes that are missing payments. We do not believe this is entirely a coincidence; unemployment is one of the major predictors of trouble paying a mortgage. For borrowers who do not have a steady income and have run out of savings, there may not be much lenders can do. However, for those delinquent borrowers who do have an income, lenders may still be able to offer loan workouts or other changes. In doing so, they could do themselves as well as the borrowers a favor, by staving off yet another foreclosure and financial loss.
Howard Law PC represents borrowers who are seeking loan modifications as a way to avoid foreclosure on their homes. Much has been made in the press of the Home Affordable Modification Program and its failings, and we share some of those concerns. However, after watching the foreclosure crisis unfold -- in the media and by speaking to our clients -- we have come to believe that lenders have simply not invested the energy and resources necessary to make the program a success. When clients tell us stories of repeatedly lost paperwork, endless transfers and other bureaucratic mistakes from otherwise competent businesses, it's hard to come to another conclusion. Our Laguna Beach loan modification lawyers work hard to get clients the answers they deserve and will vigorously fight denials and foreclosures we believe are unfair or based on gross negligence.
If you're trying for a loan modification but your lender has given you nothing but delays and excuses, you should call Howard Law for help. To set up a free consultation, call us today at 1-80-872-5925 or send us an email through our site.