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Photo of attorneys Shelley Slafkes and Bruce Levitt
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Is the National Mortgage Settlement Agreement Working?

On Behalf of | Jun 6, 2013 | Bankruptcy in the News, Foreclosure Saving Your Home

I recently came across a CNBC article discussing how millions of Americans have their home stuck in limbo despite government programs meant to help them. Bank regulators ordered a national review of troubled loans, only for the government to cancel the review and settle mortgage processing violations with 14 major lenders. The lenders agreed to make $3.6 billion in payments to borrowers who were harmed, averaging about $1,000 each in addition to actively working out loan modifications. Many homeowners are still waiting to receive their payment and learn how their mortgage is going to be handled. What are the problems? The CNBC article reports there are widespread reports of three main areas of lender’s failure:

·         Lax procedures

·         Flawed, inaccurate or missing documentation

·         Poor communication with borrowers

In an effort to fix these failures, the Department of Justice and 49 state attorneys general signed the National Mortgage Settlement agreement with five of the nation’s largest mortgage lenders to adhere to comprehensive new standards in dealing with mortgage borrowers. Unfortunately, the new procedures and guidelines are not working because lenders are not fully complying with them. Some areas are better, but unacceptable violations are still occurring. As a result, the foreclosure crisis is ongoing. CNBC reports that according to RealtyTrac, a real estate research site, the average foreclosure across the nation now takes a record 477 days! If you are facing a foreclosure or need assistance with a loan modification, contact Levitt & Slafkes. We are experienced in negotiating loan modifications and stopping foreclosure actions via bankruptcy.

If you would like to make your home more affordable, now is the time to schedule a free initial consultation with a New Jersey loan modification lawyer at Levitt & Slafkes, P.C. Contact our attorneys online by filling out the form or by calling 973-323-2953 to schedule a free initial consultation.