Foreclosure Assistance — Is Enough Being Done?by Tim Manni
The State Foreclosure Prevention Working Group (SFPWG), a group of state officials and mortgage servicers, has released the results from their third report on the performance of subprime mortgage service companies. A press release issued today from the Conference of State Bankers Supervisors calls the results of the report disappointing.
According to the release, the report revealed “nearly eight out of ten seriously delinquent homeowners are not on track for any loss mitigation outcome:”
“New efforts to prevent foreclosures are on the decline, despite a temporary increase in loan modifications through 2nd Quarter of 2008. One out of five loan modifications made in the past year is currently delinquent. Three hundred thousand subprime loans are in the process of foreclosure as of the end of May 2008.”
On the flip side is an organization called Hope Now that issued a press release which claims that, “Over 2 million foreclosures [were] prevented in past year by Hope Now alliance members.”
HOPE NOW also announced that the number of foreclosures prevented in July 2008 was at a record high for the second consecutive month, and was 6 percent higher than the number of foreclosures prevented in June. Compared to July 2007, the number of foreclosures prevented has increased by more than 54 percent.
In the face of a tax-payer supported $700 billion assistance program, shouldn’t the government be proving they are willing to do more to avert taxpayers from foreclosures? Granted, this report only documents foreclosure assistance from February to May of 2008, and the voluntary FHA assistance program implemented into the housing rescue bill won’t take shape until October.
Considering foreclosures are at the root of our current economic debacle, more organizations like Hope Now need to intensify their efforts since foreclosures are no where near under control.