It was recently reported that the Federal Reserve may alter rules for homeowners to stop foreclosure and escape loans on their home which are deemed to be predatory and overly burdensome. Some homeowners are in a position with their home loan that they feel to be an abusive situation and, as a result, have attempted to avoid foreclosure and escape this type of home loan situation.
While there have been no changes made at the present time, and may not occur this year, homeowners are concerned over the fact that a high rate of foreclosures are still being processed and there seems to be difficulties in foreclosure prevention efforts which are currently in place. Homeowners have attempted to acquire home loan modifications or refinance their mortgage for more affordable payments, but these strategies have not always been in a homeowner’s best interest nor have they always worked out in a way that has allowed a homeowner to keep their home.
It’s for this reason that changes which are being proposed by the Federal Reserve have many homeowners concerned as there are some who entered into mortgage agreement which essentially had the deck stacked against the homeowner and has these individuals locked into a mortgage requirement with unrealistic or unfair terms.
However, there are arguments, which have been present over the past months, that homeowners who feel that they are the victim of predatory lending simply have themselves to blame, as they should have properly reviewed their mortgage agreement and what will be required of them as a homeowner. While many feel it is true that the homeowners must share the blame for certain mortgage predicaments, there are also individuals who believe mortgage companies and financial institutions perhaps have acted in a way that took advantage of homebuyers when making home loans.
Yet, there are arguments that homeowners, even those in an undesirable mortgage situation, do have opportunities through home loan modifications or, for those in a decent financial position, refinancing, in order to make their loan more affordable. Various mortgage difficulties continue across the country with a variety of mortgage servicers, but there are assistance plans which have been implemented by both federal sources and directly from banks, which have offered some form of mortgage debt relief for homeowners. However, there are still individuals in a situation where they feel that these types of assistance plans are simply unhelpful, and if rules are changed which prevent rescission, there are those who are concerned that foreclosures could become more numerous.