While there are 25 foreclosure mediation programs in 14 states across the country, some now believe they may not be as helpful to troubled homeowners as they were planned to be, according to a report from MSNBC. In Maryland, for example, just 56 successful home loan modifications were granted to consumers through the state’s mediation program as of May 31, and borrowers who failed to obtain altered mortgage loans have reported that the banks enter the process far more hopeful of foreclosing than helping.
[Featured Product: Monitor your credit reports and scores]
“For me, the mediation process, I think, was a gimmick,” Louis Boney, a Maryland homeowner who went through the program, told the news agency. “In my opinion, they came there just to go through the formalities. They just want to foreclose.”
However, some also believe that the process has been a bit muddled simply because it’s so new, the report said. Most state programs are still in their infancy, so homeowners and banks alike may enter the process not knowing what to expect from mediators.
Consumers who are facing foreclosure are advised to research all of the options available to them in an effort to better understand their situation and what they can do about it.
[Featured Product: Looking for credit cards for bad credit?]
Credit.com offers straightforward tips and advice to help you make smarter financial decisions. Visit Credit.com to sign up for your FREE Credit Report Card and find out where you stand today!
Follow Us
