On behalf of Law Offices of Mark M. Kratter, LLC on May 09, 2012
Connecticut homeowners facing foreclosure may be interested in a recent headline about the housing crisis of 2007 and how mortgage servicers are attempting to clean up their acts. During the crisis, countless homeowners were subjected to messy processes that often resulted in serious damage, including inappropriate foreclosures Those currently facing foreclosure may now have more options, thanks to the federal government stepping in and beefing up industry standards.
Mortgage servicers largely took the blame during the housing chaos. When the housing crisis began, servicers were overwhelmed by the sheer number of defaulting mortgages, but when the federal government stepped in, the situation finally began to improve. The housing industry collapse led to a virtual halt in foreclosures across the nation that banks are only now catching up on. The settlement has caused the major servicers to improve quality across several areas, including communication with borrowers and execution of foreclosure documents.
While the settlement and the new standards are steps in the right direction, homeowners are still wary. Connecticut residents facing foreclosure may be relieved to know that with the new standards, the numbers of loan modifications and principal reductions have increased, allowing homeowners a better chance at keeping their homes. While there is still much progress to be made, things are looking up for the mortgage industry and for consumers who may have difficulty paying their mortgages.
Nevertheless, for some individuals and families, the reforms are simply too little too late. Those who are underwater on their home mortgages, facing foreclosure or otherwise drowning in debt may be unsure of which way to turn for help. For some, the answer may be bankruptcy protection.
Source: Chicago Tribune, "Mortgage industry has long way to go to clean up its act," Tony Pugh, May 3, 2012
