At First Banks Ignored Mitigation and now

Posted on April 4, 2008. Filed under: Greensboro Homes News | Tags: , , , , , , , , |

It was February ‘95 when I first got started in foreclosure counseling or loan mitigation as some prefer. At the time most banks had a damn the homeowner attitude when it came to helping an owner avoid foreclosure and the eventual loss of their home. The majority just dismissed the owner’s pleas and took the house. Sadly most lenders were unaware of mitigation practices.

Then a milestone came when FHA got tired of taking back so many homes from the lenders. FHA stood up and told lenders you will do everything you can to avoid foreclosure. Oh and for doing this we will pay you a fee for every home you save. Of course this made the job of a foreclosure consultant easier for the most part.

Now due to lenders’ own greed and in the majority of cases outright fraud they have created a mortgage meth lab that is exploding. Where does foreclosure mitigation sit in all this? Well the lawmakers have come up with some housing relief and here in North Carolina foreclosure counselors may be getting some help. That is to the tune of $3 million in a grant to North Carolina Housing Finance Agency and 20 other counseling agencies. You can read the $3 million grant story here.

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