Posts 
This country’s two government supported loan guarantors Freddie Mac and Fannie Mae have announced that they would put in double the effort to try and contain the existing foreclosure trend. This is definitely a positive step in helping North Carolina Bank Foreclosures besides helping other states. But in the case of a few mortgages this may offer only temporary relief reducing fiscal pressures on lenders, while the borrower would simply wait for the unavoidable foreclosure.
Last week, they both said that if the companies that service loans would work with borrowers in ways that would avoid foreclosures, they would receive increased fees (companies that service loans handle payments made on loans, besides handling administrative duties). Freddie Mac is also to provide servicers additional time to work with borrowers. Both laid emphasis on their desire to help borrowers keep their homes, a statement welcomed by people facing North Carolina Bank Foreclosures.
Freddie Mac’s list of incentive’s include giving 300 days from the time the last payment was due to servicers to work on solutions to avoid foreclosures. In terms of monetary incentives, if the terms of a mortgage are modified so that foreclosure is avoided the servicer would receive $800 as compared to $400 in the past. If short sales are organized by loan servicers and the lender accepts a smaller amount than what is owed on the property, they are to receive $2,200, up from the previous $1,100.
Not all states will benefit from this new program, North Carolina though, is on the list of states that stand to gain from this move, which could have a good effect on Bank Foreclosures in North Carolina.
Graham Fisher & Co.’s analyst Joshua Rosner, who has frequently criticized both the above mentioned organizations, said that they were simply trying to preserve money. He went on to say that they’d rather pay the lenders/servicers more money to roll over their losses to a later period even if a major portion of borrowers aren’t able to cope up with their mortgage payments and end up defaulting on their payments again.
