Are Some Owners Purposefully Falling Behind?

There is a  growing increasingly alarmed that programs to bail out troubled home owners might have the unintended consequence of encouraging people to miss mortgage payments in order to qualify for easier loan terms.

Such initiatives typically require that borrowers be 60 to 90 days late on payments to get a mortgage reworked.

Customers who are contacting their lenders before they fall behind are being told to call back when they are 2-3 payments late.  “They essentially told me to stop paying my loan” is a comment I have heard from several homeowners looking for assistance. 

 

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