Struggling homeowners in California are more likely to end up losing their homes to foreclosure than receiving a loan modification or other payment work-arounds from lenders, according to a survey released Wednesday.
The California Reinvestment Coalition surveyed 42 out of about 80 independent counseling agencies about home-loan servicers, who collect payments on loans.
The agencies, which served 11,062 borrowers in April, said they had noticed a modest rise in loan modifications involving reworked interest rates or other moves to lower payments.
About 68 percent of respondents said the most common outcome for their clients was losing their homes to foreclosure, while less than one-quarter of the respondents reported that loan modifications were very common.
Respondents also reported that mortgage modifications covered periods of just one or two years.
About 33 percent of survey respondents said short sales were the most common outcome behind foreclosure.
Such sales involve selling a home for less than the amount owed on the mortgage, which can leave the owner without equity and bring a tax hit.
Read more Article...
The California Reinvestment Coalition surveyed 42 out of about 80 independent counseling agencies about home-loan servicers, who collect payments on loans.
The agencies, which served 11,062 borrowers in April, said they had noticed a modest rise in loan modifications involving reworked interest rates or other moves to lower payments.
About 68 percent of respondents said the most common outcome for their clients was losing their homes to foreclosure, while less than one-quarter of the respondents reported that loan modifications were very common.
Respondents also reported that mortgage modifications covered periods of just one or two years.
About 33 percent of survey respondents said short sales were the most common outcome behind foreclosure.
Such sales involve selling a home for less than the amount owed on the mortgage, which can leave the owner without equity and bring a tax hit.
Read more Article...
