According to the Center for Responsible Lending, there have been approximately 2.5 million foreclosures since the housing bust began. They estimate that another 5.7 million homeowners are at imminent risk of foreclosure. What's more, roughly 60% of borrowers who are seriously delinquent (90 days or more) are not involved in any sort of loss mitigation with their servicer.
With those overwhelming statistics in mind, the Center is advocating that State legislatures across the Country mandate loss mitigation standards for all servicers prior to foreclosure.
To be fair, the CRL is not saying that state governments should deny lenders the right to foreclosure. Rather, they are saying that lenders must consider the loan modification option seriously and document that they have done so. In conjunction with some provision for short sales, this could be a good option for the market.
To read more, click HERE.
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