Texas Foreclosure Listings – Help around the corner?

Posted on August 19th, 2008 in Texas

The proverbial carrots are being offered to lenders and loan servicers who would work on renegotiating loan terms and for short sales.

Loan servicers are to receive double of what they used to if they are able to work with borrowers to reach any kind of a workout that would avoid their houses being foreclosed, announced Freddie Mac.

A few critics have mentioned that there is a good possibility that servicers would not put in the required money or time that would be needed to work on short sales, loan modifications or creating new payment plans, considering the compensation they would receive.

Compensation has been doubled for servicers involved with pre-foreclosure sales or short sales, from $1,100 to $2,200. For loan modifications, compensation has been doubled to $800 from the previous $400. Servicers who would work on successful repayment plans are to receive $500, up from $250.

Freddie Mac is also giving servicers 300 days to do what they can in order to work with borrowers who are delinquent in the state of Texas, along with the following states: Alabama, Alaska, Arizona, Arkansas, California, Georgia, Hawaii, Maryland, Michigan, Minnesota, Mississippi, Missouri, New Hampshire, North Carolina, Rhode Island, Tennessee, Virginia, West Virginia, Wyoming and Washington D.C.

In an attempt to increase the efforts put by servicers to get in touch with borrowers Freddie Mac is set to provide monetary benefits to servicers. Where servicers have vendors working for them to leave notifications (door hangers) at borrower’s homes, and the borrower hasn?t previously contacted the servicer and is more than 3 months delinquent, they will receive $15. After the 31st of March, if a knock on the door of a borrower results in the borrower contacting their loan servicer, Freddie Mac will pay $50. If a foreclosure can be avoided as a result of the knock, $200 will be given.

Freddie Mac said that rates on mortgages with a thirty year fixed rate mortgage have fallen in comparison to last year. Homeowners already in the Texas foreclosure listings wait to see how this would benefit them.

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