Web Site to Help Lower Bank Foreclosed Home Rates

by Peter Vernon on Foreclosure Help

FICO, previously Fair Isaac and Co., has launched a Web site that aims to help lower bank foreclosed home rates in the United States. The FICO Web site is welcomed by industry experts who are concerned over companies that fail to fulfill their promises to help distressed homeowners arrange loan modifications.

FICO developed a scoring system used by lending institutions to determine potential good borrowers. Now, the company is using the same concept to help distressed homeowners overcome difficulties they are facing when they try to negotiate with their lenders.

The FICO Mortgage Recovery Initiative Web site offers distressed homeowners free assessment of their financial situation, certified credit counseling service and a way for them to negotiate with their lenders.

FICO Chief Executive Officer Mark Greene explained that the federal government’s mortgage remediation guidelines have allowed the company to provide in depth solutions that can address every individual’s concerns.

Meanwhile, consumer complaints are growing in number each day indicating a failure to help homeowners avoid foreclosure. Some consumer complaints include difficulty to reach lenders and loan servicers and unresponsiveness of lenders to homeowners’ needs.

These complaints belie statistics showing thousands of distressed borrowers able to save their distressed properties from foreclosures because of loan modification.

Even worse, market studies showed that almost 50 percent of homeowners who have successfully availed of the loan modification plan are defaulting on their monthly mortgage payments as soon as they have modified their loans.

The high number of homeowners who re-defaulted is blamed on the failure of mortgage relief efforts to take into consideration the general financial situation of the borrower.

The FICO initiative will address this flaw in the mortgage relief program by assessing the distressed borrower’s other financial obligations, their total debt and ability to effectively manage their debt.

FICO explained that these factors play crucial role in determining the ability of the borrower to succeed with a modified mortgage.

On the other hand, borrowers who are having financial difficulties but still manage to pay their monthly mortgages can also be helped by the FICO Web site. The free Internet portal can help borrowers determine whether they are qualified for assistance under the Obama Administration’s Making Home Affordable scheme.

The scheme is the main program of the Obama Administration to help more than 9 million homeowners keep their properties from becoming bank foreclosed home.