Home Lenders Would Rather Modify Than Foreclose

A recent Associated Press article (reported on the MSNBC website) reports on efforts by EMC Mortgage Corporation's "Mod Squad" to reach out to their loan customers in default in order to help them calculate a workable payment plan on their mortgages, rather than immediately forclosing on their homes. They are shooting for up to 2,000 loan modifications a month; six months ago EMC only modified about 400 loans a month. Litton Loan Servicing in Houston also claims that it is modifying about 1,000 loans a month; up from 300 to 400 about six months ago.

The nonprofit Home Ownership Preservation Foundation, a national organization that offers free foreclosure counseling, prevention and intervention services, is reporting that calls to it have picked up markedly over the last 12 months. Its 24-hour hotline, (888) 995-4673 (888-995-HOPE), is getting 300 calls a day, up from 75 daily in the first quarter of 2006. To read more, see Lenders willing to help struggling homeowners (To stop rise in foreclosures, mortgage modifications are more common).
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