The majority of the large lenders, including Citigroup, Bank of America and JP Morgan Chase, have given their commitment to the initiative and will participate in helping to restructure over $150 billion worth of loans for over one million borrowers who currently find themselves struggling to make their monthly mortgage payments. These big banks are doing their part to help the American homeowner but there will need to be more done to truly assist the country to get over the economic crisis and decrease the ever growing number of foreclosures. One significant problem is that most of these foreclosed homes stemmed from loans that have already been packaged as mortgage backed securities and have been sold to investors. Loans that have been securitized are subject to other regulations and guidelines that may impact a lenders ability to modify the existing terms with the borrowers.

Not only are current borrowers are risk, but the current struggling credit market has created a severe increase in the cost of capital and money is simply not being lent out. New potential borrowers – even those borrowers with a clean credit history – are having problems obtaining loans. Banks are depending on the government to assist with their flow of capital in order to increase their lending capacity during these hard times. The stead decline in home prices over the last two years has also created problems. Homeowners who once banked on appreciation are out of luck. This is not helping the government in their efforts to establish an effective relief program. Borrowers just need to continue to work with their lenders and not avoid the issue. Those borrowers in jeopardy of default need to contact the institution that issued them their loans and ask what options are available in order to avoid foreclosure and get back on track. With the assistance of the lender and with the backing of the federal government, homeowners should be able to avoid completing losing their homes and the foreclosure rates could start to move down. It’s now up to the banks and borrowers to make some sacrifices and get the housing market back on track.

Foreclosure Topics

• Bank Foreclosures (10)
• Distressed Property (6)
• Foreclosed Homes (11)
• Foreclosed House (7)
• Foreclosed Properties (9)
• Foreclosure (13)
• Foreclosure Auction (7)
• Foreclosure Crisis (13)
• Foreclosure Homes (7)
• Foreclosure Listings (10)
• Foreclosure Property (10)
• Foreclosure Rates (17)
• Foreclosure Scams (5)
• Foreclosures (8)
• General (13)
• Government Foreclosures (6)
• HUD Homes (6)
• Judicial Foreclosure (3)
• Mortgages (16)
• Pre Foreclosures (6)
• Real Estate (12)
• Real Estate Foreclosures (6)