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Foreclosures and the spin
“Foreclosure Prevention Rises 136 percent in Florida”
So said the press release.
But read on and you’ll find that it’s just so little help for so many people in trouble.
Lenders say they are willing to work with troubled homeowners, but are they?
The release from Genworth Financial says that in the second quarter 276 Florida borrowers completed loan workouts – a catchall word for deals in which terms of a troubled loan are changed so that the borrower can afford to repay it.
Great. It’s not a big number, but it’s something.
In June, almost 5,000 homes in Broward and Palm Beach were in some stage of foreclosure.
The 276 Florida buyers who Genworth Financial helped may have been the lucky ones.
Or may not.
The release says one in four in Florida who did get a workout lost their home anyway.
Harriet Johnson Brackey, the personal finance writer for the Sun-Sentinel, has been an award-winning business...
Comments
Loan workout just means that the bank will just take all the money you owe plus fees and just add it to the principle of the mortgage and let you pay for it. Of course the borrower is not going to be able to afford it and still will go into foreclosure. What is needed is for the Govt to make the banks modify the Principle balances on the mortgages to current mkt levels and refi the owners into fixed rate loans, but that ain't gonna happen so more people will just go into foreclosure and only rich people will be able to pick them up at foreclosure prices.
Posted by: bubba | August 6, 2008 10:27 AM
Congress seems to be of the opinon that it can't pass a law to force lenders to change mortgage terms. Instead, they seem to think that if they changed the law, bankruptcy judges could do that. And I know they are talking about doing just that.
Posted by: Harriet | August 6, 2008 12:29 PM
As someone who works in the mortgage business, I commend this company for the help they’ve given to these borrowers.
Most people who have fallen behind on their mortgage payment are scared of the consequences and it’s hard to get in touch with them, even when you’re trying to help.
If it’s 200 families helped or 2000, the industry has a responsibility to try and stop foreclosures and here’s one company who is at least trying.
Shannon Pivoriunas
Posted by: shannon | August 7, 2008 12:01 PM