Fixing the Foreclosure Crisis

by Simon Lindsay on Foreclosure Crisis

It has to be accepted that the foreclosure situation has gone from bad to worse. Third quarter reports are showing a 30 percent increase in national foreclosures rate and there is no end in sight. In cities hit hardest by the foreclosure crisis, lenders, borrowers and counselors are working hand in hand to somehow fix the damages.

An example of such groups is the Cleveland Housing Network, which provides counseling sessions several times a week. Another non-profit organization is the East Side Organizing Project, which started with two foreclosure counselors and has now six.

The relationship between lenders and borrowers has been greatly improving in the past months. Homeowners who are having problems keeping up with their mortgage payments are now entering into forbearance agreements with their lenders. On the other hand, lenders are accepting these requests for forbearance. Many borrowers are now able to work out their finances and clear up any missed payments.

Borrowers who are having more long-term mortgage problems are being advised to restructure or refinance their mortgage loans. This effectively lowers their monthly payments and makes them more realistic. Some adjustable rate mortgages have been converted into fixed-rate loans.

In addition to this, the groups are also teaching homeowners about financial responsibility. Many homeowners are encouraged to attend classes on financial education in order for them to realize what they have been doing wrong with their finances. A simple lifestyle change can mean the difference between losing their homes and keeping them.

The internet is also a good source of foreclosure help. Foreclosure experts like Bank Foreclosures Sale does not only provide reliable foreclosure listings to buyers but also good tips and advice for homeowners in mortgage trouble. Being pro-active is probably the best thing you should do in this type of dilemma.