Consumer advocates call for foreclosure moratorium

From Housing Wire:

National civil rights groups, including the Leadership Conference on Civil Rights, the NAACP, the National Fair Housing Alliance and the Center for Responsible Lending called today for mortgage lenders, loan servicers and loan investors to institute an immediate six month moratorium on subprime home foreclosures.

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â??Homeowners saddled with defective loans need relief,â?? said Mike Calhoun, president of the Center for Responsible Lending. â??Those responsible for these mortgages have a duty to fix the broken product they sold just like anyone else. The industry must work quickly.â??

I used to be a marketing guy, so I can appreciate a good press drum-up along with everyone else; however, there is no way a moratorium on foreclosures is going to be instituted on a national level. It’s just not necessary and it’s irresponsible to the rest of the country’s economy. Besides, lenders are ALREADY DOING IT! If you are in foreclosure or in default, pick up the phone and call your bank. Explain the situation and get help. The lender, believe it or not, wants to keep you in that home.

Some of the biggest servicing companies in America have formed huge "mod divisions" that handle making adjustments to existing mortgages to help borrowers stay in their home. Whether through forbearance or the adjusting of the loan terms; they are there to help you keep your home. You just have to communicate.

We don’t need the government stepping in and banning foreclosures. We need individual citizens to pick up the phone and arrange for repayment based on new terms with their existing lender. Don’t be afraid to call, please! They are not going to hunt you down for calling; they are going to try to keep you in your home.

Email me if you have questions about how to do this or if you want a third party to sit in on a call with you. I’ll do it for free and I won’t solicit you for business. As I’ve said before I am doing this blog because I care, not to generate leads.