Mortgage Meltdown: Report Finds Serious Potential for “Another Wave of Unnecessary and Preventable Foreclosures”

Website Legal Newsline reports:

Mortgage servicer efforts to keep U.S. homeowners from going into foreclosure have decreased according to a report by state attorneys general and banking regulators on Monday. The State Foreclosure Prevention Working Group(1) report found that for the period February through May that nearly 80 percent of seriously delinquent homeowners are not on track for any loan work-out or loss mitigation assistance to help them avoid foreclosure. “Too many homeowners face foreclosure without receiving any meaningful assistance by their mortgage servicer,” the report said, “a reality that is growing worse rather than better, as the number of delinquent loans, prime and subprime, increases.”

The report — — is based on data collected from subprime mortgage servicers. “While some progress has been made in preventing foreclosures, the empirical evidence is profoundly disappointing,” the report said.

For article, see http://www.legalnewsline.com/news/216161-report-foreclosure-rescue-efforts-fall-short.

For report, see http://www.illinoisattorneygeneral.gov/pressroom/2008_09/SFPWGReport3.pdf.

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