Foreclosure Counselors Frustrated at Bailout Results

by Peter Vernon on Finance Foreclosures

In New York, homeowners having trouble with their mortgages are being assisted by counselors who have volunteered to do this for free. In many cases, these foreclosure counselors find themselves so close to giving up and wondering how difficult it is to work out these foreclosure issues.

The most common problem that a foreclosure counselor encounters is negotiating new mortgage terms with the lenders and loan servicers. Supposedly, these people have promised to extend any help they can to the borrowers in order to avoid foreclosure. But when push comes to shove, they do not cooperate, leaving both the counselors and the troubled homeowners frustrated.

This situation is not only isolated in New York. Everywhere you go, you will hear stories about homeowners trying to re-negotiate their mortgage terms in order to make it more affordable. At the end of the day, they still end up losing their homes to foreclosure because the lenders do not want to change the mortgage.

With the current crisis in the housing market, these lenders are setting themselves up to more trouble. In the first place, they were the ones who created the present market condition. Offering borrowers with hybrid mortgage packages, these lenders have actually caused millions of Americans to lose their homes.

Although the federal government has repeatedly encouraged lenders to work out these mortgages, most of them are still choosing to foreclose. But with a market that has a big demand for buyers, their inventory of foreclosed properties will only get bigger and costlier.

The problems between lenders and borrowers should be solved at the soonest possible time. Many financial experts are already fearful of a recession and these issues will certainly not put these fears to rest.

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