Foreclosure listings services in Butler County, Ohio are expected to get additional properties as foreclosure filings continued to rise. In October, about 268 homeowners received foreclosure filings, representing an 8 percent increase from the same period last year.
But industry experts are hopeful that many distressed properties would be saved from foreclosure auctions as banks started negotiating with troubled homeowners to modify their loans into affordable terms.
Data from the Neighborhood Housing Services showed that as of August 2009, the number of homeowners who sought for some help to save their properties from foreclosure increased twice more than the total for the entire 2008. As of August 31, there were 426 repossession inquiries received by the Neighborhood Housing Services. The figures represent a whopping increase from the 287 posted for foreclosure listing services in the entire 2008.
Industry experts said that more banks and lenders are negotiating with troubled homeowners for loan modification. However, they pointed out that the system is overburdened with homeowners seeking loan modification that more defaulted mortgages still go into foreclosures. This means that distressed properties are still at risk of foreclosures as housing counselors wait for the banks’ response to loan modification requests.
But industry experts are questioning whether homes that were taken from foreclosure auction block are totally saved from foreclosures or they are at risk again after six months. They have no way of knowing whether those who sought for foreclosure assistance could keep paying their mortgage.
They suggested that homeowners should seek the help of HUD-certified housing counselors if they do not want to experience again the threat of foreclosure. They said that there is a significant change in the attitude of lenders today compared to last year. They said that lenders are more flexible with homeowners who want loan modifications than the previous years, adding that they are even considering unemployment payments as part of the income.
Industry experts noted the change in lenders’ modification system when unemployment rates started to overshadow adjustable rate mortgage as the reason for defaulting on loans. They said that without a doubt, loan modifications can greatly help distressed homeowners save their properties from being placed on foreclosure listing services.
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