Wednesday, December 2, 2009
Government Stepping in to Help Foreclosures
By: Sara Sindelar
There are a rising number of foreclosures during this economic crisis. With unemployment rates rising and borrowing money is becoming more difficult foreclosures are increasing. The government has been stepping in to help with this growing problem. The government wants to have the loan providers to help these homeowners long term. They are going to physically go to these providers and help move along this slow transition to get homeowners back on track quickly. Banks are now going to be required to send progress reports two times a day for the month of December. Those that do not cooperate with the guidelines placed will face penalties.
The government wants to help the providers have a good line of communication with their borrowers. The homeowners are being placed in trial runs to see if they will be able to meet the new payment plans. Bankers are complaining that the borrowers are not turning in their paperwork which is slowing down the banker’s side of the process.
The Treasury realizes that this problem is two sided since homeowners are not handing in their paper work as well. This is going to be a work in progress for homeowners to stay away from foreclosures.