As the number of foreclosures continues to grow so has the finger pointing. This past month Los Angeles County had more REO's than Riverside County which is significant. Who really is at fault for the current foreclosure crisis? Is it the lenders who offered loans to individuals who couldn't really qualify? Are the home buyers at fault for not doing their due diligence? Does the blame lie with the government for not further regulating safe lending practices? Now that we are in this crisis is there anything that can improve the situation?
As it turns out, avoiding denial appears to be one of the most significant things a home owner can do to prevent losing their home to foreclosure. Inman News, the leader in real estate news, recently reported that there are many "needless" foreclosures happening, in some cases due to home owner denial. They are called "needless" foreclosures because it actually costs the lender more to foreclose on the property than it would to reduce the interest rate on the mortgage and make it affordable for the home owner.
Not all loans are eligible for an interest rate reduction, there are many exclusions and impediments, but there are mortgages that have been foreclosed upon that could have been avoided through this process. If you are a home owner in danger of being foreclosed upon, make sure you talk to your lender to see if you are eligible to modify your loan. Don't lose your home to denial.
