Help For Homeowners: Banks Are Accused of Mishandling Foreclosures
According to RealtyTrac, a web-based mortgage and foreclosure research firm, Alabama has approximately 300,000 foreclosure defense filings as of January last year. Currently, Alabama ranked No. 40 among all states in the country that has the highest foreclosure rate. To put a stop on this alarming trend, the Alabama Housing Finance Authority is making tremendous efforts in providing help for homeowners, especially those families with low to average monthly income. There are plenty of loan modification programs offered by the same government agency, this includes but not limited to the following:
Officials in 23 states which have judicial foreclosure process have halted the foreclosures for Bank of America, Chase and GMAC. There is a possibility that number will grow to 40 states as more concern about protecting the rights of homeowners increases. While California does not have a judicial foreclosure procedure, the Attorney General had ordered JPMorgan Chase to suspend pending foreclosure activity while their methods are under review. It is inevitable that more banks will follow and perhaps a general moratorium will be announced by the President. The concern is that the banks are not carefully reviewing the documents for accuracy prior to moving the home to sale and that many borrowers are being treated unfairly and being denied their protection under the law – this is serious enough to warrant some drastic action.
In virtually every jurisdiction, efforts aimed at assisting homeowners in the fight against foreclosure have run against a common roadblock: the reluctance of many homeowners to file the court forms that are required for them to take advantage of the new, anti-foreclosure initiatives. Many homeowners mistakenly believe that filing an answer to a foreclosure complaint, or a complaint to delay a foreclosure sale, is too complicated or expensive. In fact, filing an answer to a bank’s foreclosure complaint is a simple process that involves filling out an easy-to-understand form with the local courthouse. Answers to foreclosure complaints are available from a variety of sources, and can be completed and filed by homeowners without paying high legal fees.
In addition, legal forms required to request mortgage modification and/or bank approval of a short sale are also widely available, affordable, and easy to use. As the mortgage foreclosures crisis intensifies, lenders have shown increasing flexibility in responding to requests for loan modifications or short sales.
Keep in mind that there are plenty of help for homeowners like you in Alabama; you only need to contact the right people and keep in touch with your mortgage lender during the process. The agencies around you can only provide opportunities to get your loan modified; your lender is still the one in authority whether to accept your request or not which is why you must always keep them informed.
Learn more about Obama Mortgage Relief Plan Qualifications.
