Foreclosures Continue as Loan Modification Law Fails to be Effective

Foreclosures are continuing because the loan modification law is failing to be effective. One year previously the foreclosures in Houston mediation legislation was applauded with high hopes that it would stop the transformation of thriving communities into ghost towns. The target was to keep 17,700 families in their houses and away from the tentacles of foreclosure.

As per the legislation those borrowers who felt they could manage their loan if the mortgage was modified should put in a request for mediation. It was mandatory for the lenders to attend this mediation meeting. Once the foreclosure starts the borrowers had a grace period of thirty days to seek mediation.

The legislators who pushed through this bill contend that it is working but more consistency is necessary. The representatives of the bank say they are satisfied with the mediation procedure. All they have to do is show their faces at the meeting to satisfy the rules laid down by the law.

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