Majority of those facing Foreclosure want Payments to be Reduced

The majority of those facing foreclosure just want to have their payments reduced so that they can afford to stay in the houses that are their homes. But those advocating audit of mortgages argues that this can trace errors and violations of the law that would provide the homeowners with a bargaining tool while talking with the lenders. But there are many who say that in most of the cases it does not work out satisfactorily for the homeowners.

Sylvia Alayon of Consumer Audit Center said, “We find violations in 98% of the audits we perform. The mere fact that we’re finding so many tells us that there were not a lot of standards in loan qualifications. People were put into loan programs they simply could not afford beyond the initial payments. If you could fog a mirror, you could get a loan.”

The troubled homeowners can consult their lawyer or any consumer group regarding audit of mortgage. Alayon said, “depending on the type of violation, there are remedies available to them. The audit serves as the negotiating tool in getting their loan modified.”

She pointed out that the foreclosure is a legal process involving “going to court, which can become very expensive.” But the consumer advocates contend that those who make payments for this mortgage audit will have to chase the errors in court in any case. Till date only few cases have met with success.

Attorney Margot Saunders with National Consumer Law Center said, “In my opinion they’re a waste of money. The ones I’ve seen are often wrong. Second, even if they are correct, you need to hire an attorney who knows how to use them. Third, even if you’ve got a good claim, that doesn’t necessarily mean you’ll have a case. An audit of the numbers in a file omits the much more important story of what went on and why the consumer was wronged, if they were. They don’t tell the whole story, so they’re often unsuccessful.”

There are instances of judges refusing to foreclose because the lenders fail to produce proper documents vouchsafing ownership said Barry Zigas of Consumer Federation of America. Most of the loans that are now facing trouble had been securitized – given to the holding of a trustee. Zigas explained, “So when the judge asks the lender to produce the note, they don’t have it.” There are other loopholes. Zigas said, “If there was a deliberate attempt to qualify for more than the borrower could afford, and there’s no evidence that the borrower colluded. How often any of this is happening, I don’t know.”

Original Post: Majority of those facing Foreclosure want Payments to be Reduced