Several mortgage help programs were launched over the past year. Even more have been kicked around, although many of them never materialized.
Is mortgage help working to reduce foreclosures and end the financial crisis? It doesn't look like it.
Most of the programs serve only a small number of borrowers. Lawmakers, banks, and the media put significant resources into creating and discussing mortgage help, but very few homeowners have been helped.
What's the problem? One study by the National Consumer Law Center (NCLC) attempts to answer that question. They suggest that results are nowhere near expectations because loan servicers have too much freedom. The report proposes stronger legislation at a national level since states have been unsuccessful in their efforts.
You can read the report (PDF) and listen to a summary of the study (WMA audio file) from the NCLC.
What do you think? Should the government increase pressure on banks and servicers to make mortgage help a reality?
Further reading:
I want to speak for myself, I have worked very hard to keep my home,I have deprived my self from even basic stuff in order to make my payments,and on top of that I spent hundreds of dollars improving the property,and even refinanced once where I lost over thirteen thousand dollars for pre-payment penalty and so called closing cost. Now that interest rate are low and I am trying to benefit from it,I have the most difficult time to do that,everyone wanted to take my equity out and leave me with a higher principal,and no substancial savings therefore I refused to refinance. I see that the same thing that got us in this mess is happening again. There is no rest for the weary.