Foreclosure Mess – 4/6/2009

Posted by Bob on April 6, 2009 under Daily Blogs | Be the First to Comment

Millions of Americans are experiencing the tragedy of losing their homes to foreclosure.  The collapse of the financial industry, declining real estate prices, irresponsible borrowing, job loss and predatory loans are just a few of the reasons why homeowners are facing difficulty making their monthly payments.  Many families in Naugatuck have been affected.

In my own business, I have heard horror stories from clients simply trying to contact their lenders.  Often phone calls to national lenders, some taking a half hour or longer, result in very little direction or resolve.  Many large financial institutions are unable or unwilling to process requests for assistance, modifications or short sales in a timely manner.

Local government’s direct role in helping homeowners avoid foreclosure is limited to controlling taxes, which are usually collected by lenders as part of monthly payments and held in escrow until due.  The Borough can and should, however, provide struggling homeowners with information and access to resources that can assist homeowners avoid foreclosure and/or minimize damage.

Programs and options do exist before and after legal action has commenced.  The Borough can not and should not provide legal advice, but it would be prudent for those in the administration to be versed in directing citizens to appropriate contacts and resources that may be of assistance.  In addition, I would work with state and federal officials to ensure that lenders be more responsive to their clients.