Many homeowners with strong credit histories are now flocking to foreclosure counseling services and mediators to seek advice on how to avoid having their home seized by banks, according to a report from the New Jersey news site MercerSpace.com. This is a relatively new trend in a foreclosure market that used to be populated almost entirely by subprime consumers who were granted bad loans on houses they couldn’t afford.
The large majority of these foreclosure cases for so-called prime homeowners stem from their being unable to pay their bills as a result of unemployment or, less frequently, mounting medical expenses, the report said. Fortunately for these consumers, even if they are in the foreclosure process, it typically takes up to a few years for their home to actually be seized, especially in light of the deluge of cases that have to be handled by banks.
There are a number of programs in place to help consumers deal with their potential foreclosure proceedings. This includes the newly formed federal Home Affordable Modification Program, which is designed to help severely troubled homeowners alter their loan so they can make payments more easily.
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