Promises of help with mortgages, but foreclosure is still most likely outcome
Federal and state officials, eager to stabilize the housing market, have leaned hard on mortgage companies to honor their pledges to help more homeowners avoid foreclosure.
But in California at least, the mounting pressure has so far produced only modest results, according to a survey released Tuesday by the nonprofit California Reinvestment Coalition.
For all the promises of leniency, foreclosure remains the most common outcome for borrowers who come to mortgage counselors seeking easier loan terms, according to the September survey of mortgage counselors statewide. Not only that, but counselors complained that lenders frequently give callers the runaround, lose documents or are slow to respond to borrowers’ inquiries.
Still, the survey showed some progress. When the same survey was conducted in April, 68 percent of counselors said foreclosure topped the list of common results for homeowners appealing for help.