Fighting The Bank and Winning: How These Homeowners Did It
- Stories of homeowners who feel mistreated by their banks are commonplace these days. Hundreds of thousands of people are underwater and behind on their mortgages. As they seek loan modifications or other solutions, they tell of hours on hold, never speaking to the same person twice, reams of lost paperwork and rejections for reasons they dont understand.Some homeowners actually do get workable solutions, most commonly loan modifications to reduce their payments. Some outlier cases get even more unusual outcomes. Whether its getting a foreclosure rescinded or reducing the amount owed on a second loan, the odysseys of people who successfully negotiated with their banks provide tips that may help others in similar situations.
BY CAROLYN SAID, SAN FRANCISCO CHRONICLE
Published 10:04 a.m., Wednesday, May 11, 2011
Debt problems could hit homeowners
Concerns are rising that many homeowners in the UK could be hit with big debt related problems later this year as a result of base interest rate increases, which many believe will occur in the spring. Whilst the base rate has been at its record low of just 0.5 percent for twenty two months now many believe that it could rise in April or May, as the Monetary Policy Committee tries to keep a lid on inflation.
An increase in interest rates could send the repayments of some homeowners soaring by hundreds of pounds a month, and in the current financial climate this could lead to serious financial issues that tip some people over the financial edge. For those on fixed rate mortgages the interest rate increases won’t have any effect at present, but those on variable rate loans will see a difference in the amount that they have to pay each month.
For those who do have to make higher repayments on the mortgage following interest rate increases it could compromise on their ability to meet other financial commitments, which will lead many to seek debt related advice from financial experts in the field. T
Homeowners stranded in loan modification limbo
Nearly 350,000 homeowners in California received some kind of foreclosure notice in the first half of this year. That is the highest rate in the country. Realty-Trac, the online service that tracks foreclosures, also reports banks are on pace to repossess more than 1,000,000 homes around the country by the end of this year.
Tens of thousands of struggling families have been trying to deal with their banks and lenders, sending in paperwork and payments, in an effort to win a modified loan with better terms. Many have been frustrated with ongoing delays.
More CA/Local News A pristine gated community in Irvine may not be the place you think of when you think housing crisis and sub-prime loan debacle. Still I am standing in front of a house with a foreclosure notice tacked in front. And it’s right across from Jean Wilcox’ house. She