Intervention increasing at all levels to help cope with foreclosure

The number of families who are entering into foreclosure is rising every month. Yet a substantial number of these foreclosures could be prevented if the homeowner had thought of working the matter out with the lender.

Homeowners are often unaware that the lender too is not keen on a foreclosure and looks on it as a last resort. To the lender a foreclosure implies a bad loan and they do not want too many of those. Further, when the property is foreclosed the lender recovers the dues but the real estate rarely fetches its market value in terms of price. Thus more often than not the lender too is looking at ways to avoid foreclosure.

However most homeowners are unaware of this. So, instead of meeting the lender right at the beginning they first try out other options to prevent the property being foreclosed. If they had approached the lender a mutually beneficial settlement could be reached at the onset itself.

The non-profit sector together with members of the finance and insurance industries have now started taking steps in order to prevent and slow down the rising numbers of foreclosures nationally. A few phone counselling lines have been set up where homeowners can call and talk about their difficulties. They are advised about their situation and help is offered to chalk out a plan that will get them out of the present situation. Many homeowners are embarrassed about their situation and do not know who to turn to for advice. These hotlines have thus been very useful as homeowners can call without revealing who they are.

Efforts are also being made to establish intervention programs in those cities which are experiencing a lot of foreclosures. These programs work alongside community leaders and local businesses to try and prevent foreclosure.

In many states the government is stepping in by advising on mortgage and refinancing issues. They realise that some action is required to help people cope with the effects of foreclosure otherwise the situation can spiral out of control. The government programs help those who are facing foreclosure as well as those who are taking mortgage loans. With the right guidance they feel that many can be prevented from falling into the same debt trap that leads so many to foreclose.

Task forces are being set up in some states to plan out strategies to tackle the rising tide of foreclosures. Educating the general public about real estate issues as well as examining existing laws are some of the thrust areas of these task forces.

It is hoped that with all these measures the number of foreclosures will soon start declining.