During the housing boom, many homeowners took second mortgages on their homes. Once the market collapsed, many homeowners were left unable to afford their first mortgage, let alone their second mortgage. Left with no other options, many homeowners faced foreclosure or were forced to short sell their homes. Once the feds realized that Americans needed assistance in order stay in their homes, they struck a $25 billion deal with the “big dogs” in the mortgage industry requiring them to modify mortgages. This deal was intended to rescue homeowners and to help them to stay in their homes but the questions still remains……Has it?
It looks like the mortgage companies took advantage of many homeowners by forgiving the second mortgage which was considered mortgage forgiveness under the first deal. This allowed the mortgage companies to continue on with foreclosures at the same rate but also meet the demand that the feds had put on them. Now that the Feds are wise to their game, they are demanding tighter regulations on the banks and are requiring them to forgive first mortgages in zip codes that were hit hardest by predatory lending. If you were one of the many that went thru foreclosure and the second mortgage was not forgiven, you may want to contact a reputable debt settlement attorney in your area. They may be able to assist you in negotiating a settlement for a fraction of what you owe.