The troubled housing market is holding back economic
recovery and the federal government has called been called on to offer
solutions. The Justice Department has weighed in on the issue.
A new report released by a Department of Justice panel is
recommending that foreclosure mediation is one solution to the crisis and is
worthy of funding for more research. Foreclosure mediation allows the homeowner
to negotiate with lenders to avoid foreclosure by renegotiating their mortgage
terms.
There are millions of homes waiting to go through the
foreclosure pipeline. Some of these homeowners may be able to avoid losing
their home if the enlist the aid of a foreclosure attorney. Many others however will lose their homes, which further weigh on
the housing market, depressing home values.
Last week, Federal Reserve Chairman Ben Bernanke suggested in
a paper that lenders “aggressively” pursue loan modifications. The Justice
Department panel also suggested that federal guidelines for mortgage mediation
be developed.
The Home Affordable Modification Program was intended to
help 3 to 4 million homeowners, but as of November last year only 750,000
people participated in the program. Some of this lackluster participation is
the fault of major mortgage lenders who have not given homeowners the option to
participate in the program even though they are eligible. A foreclosure lawyer can help negotiate
for a mortgage modification but only if the lender is willing.
A homeowner can consult with a foreclosure attorney to determine what options they have to avoid
losing their homes if state or federal programs are not a viable option.
