Banks, faced with rising foreclosures, government pressure and economic realities, are growing more willing to modify loans to keep borrowers out of foreclosure.
More than three million U.S. homeowners over the last 15 months have either received loan modifications or are involved in programs where that will be the result.
* About 2.26 million mortgages have been modified under the Hope Now program, an alliance of mortgage servicers, counselors and investors.
* An estimated 400,000 homeowners are expected to participate in a new Federal Housing Administration program that allows borrowers in trouble to refinance into a 30-year FHA loan.
* Nearly 400,000 borrowers whose loans came from Countrywide Financial will be refinanced through new owner Bank of America as part of an agreement resulting from a class action lawsuit.
Source: USA Today, Stephanie Armour (10/22/2008)
Hopefully the banks will take this seriously and help people to stay in their homes rather than lose them to a foreclosure. Such action would be good for all involved!