Tuesday, May 27, 2008

Lenders try to help homeowners in trouble but is it too little, too late?

The Orange County Register Saturday, May 24, 2008 Click on link above for entire article

As foreclosure numbers break records, politicians and banks scramble for a solution.
Banks are helping a broader array of homeowners struggling with their loan payments, but the sheer number of bad loans is overshadowing their efforts.

Experts say lenders and loan servicers are now willing to work with financially strapped borrowers even if they are current on their loans. During the housing boom, banks generally modified home loans only after borrowers missed at least one payment and thus dinged their credit, sources said.

One reason banks have changed their tune: record foreclosures.

Despite a slew of government programs to buoy the housing market, foreclosures keep climbing in many markets. In Orange County, DataQuick reported banks took possession of 898 houses and condos in April, the highest monthly total in the company's records going back to 1988.

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