Many homeowners in distress are not given a chance to avoid foreclosure. Most of the time banks immediately consider foreclosing on you as soon as they see you are late in your monthly payments. A new Housing Bill is intended to prohibit lenders from foreclosing without first discussing reasonable modification options with the borrowers. Preserving Homes and Communities Act is the name of this bill. Lenders will have to go to a negotiating table with the homeowners to discuss this opportunity - otherwise there will be legal actions and fines. It will be mandatory for lenders to offer some sort of a plan to help the homeowners keep their properties by lowering their monthly payments and extending the loan term, etc.
Hopefully, it will be passed despite the fierce opposition on the part of financial institutions.
So, if you or anyone you know is in distress, put together all the paperwork showing your hardships and start calling your bank with a request to modify your loan. Do not give up - it may take months before your bank starts listening to you.
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