Foreclosure Prevention Measures

Posted in Foreclosure, November 20th, 2007 |

Texas Attorney General Abbott has given out call to troubled house owners regarding prevention steps against foreclosure attacks. By 2008 property worth $600 billion will be reset at a high rate. Abbott wants lenders as well as public personnel to work in tandem and stand beside the house owners of Texas in their hour of need. Everybody’s interest is at stake.

The foreclosure crisis has had a tremendous impact on the real estate business and unless it is resolved the economy of Texas will continue to be adversely affected. Proposals were laid out at a meeting and Abbott is hopeful that the suggestions will be implemented.

The American society and economy stands on the pillar of house ownership and as such for the survival of its ideal and foundation the troubled house owners must be helped.

Abbott has suggested that the major lenders seriously think about changing their adjustable rate loans into fixed rate mortgages. The lenders must shed their confrontational stand and first come forward with a negotiation attitude. Each case must be amicably reviewed. This will make the borrower more motivated to try the level best to clear dues. Lines of communication must be opened before sending impersonal notices. As a good will gesture penalties and fees must be set aside.

Abbott suggested the setting up a committee to see to the complaints of each consumer and report back the cases to his office. Abbott requested the four lenders to follow up the matter and come back to him within a month regarding the action implemented. He also wanted to know the details of the number of ARM’s that had been converted to fixed rates and the fees waived.

A report submitted by an analyzing group said that despite much talk and hype about modification of loans as a remedy for foreclosure malaise, the mortgage servers have made only modest progress. However as requested the four lenders met Abbott and stated that they had been following his guidelines. They have been contacting borrowers over phone and mail at least five months ahead of the reset date. There have been many instances of borrowers reversing to fixed mortgage agreements with less rate of interest. HSBC said that it has been proud to implement the proposals of Abbott as they are strongly committed to the preservation of house ownership culture in Texas.