More homeowners turn to mediation after foreclosure
Teri Schrettenbrunner, head of Wells Fargo Home Mortgage Communication, said the bank is committed to helping homeowners facing true financial hardship stay in their homes they can afford, but, as is the case with all lending institutions, it has to honor the terms of its contract with the investors. "We are bound by the contracts we have with ... whoever owns the loan on the back end to do what they find acceptable in modification," Schrettenbrunner said.
Millions of working and middle-class homeowners are facing a similar predicament. An estimated 10% of all home loans are delinquent by 60 days or more, the Mortgage Bankers Association reported this month.In Florida and Nevada, two of the states where the housing crisis has hit hardest, the rate was over 20%, the MBA said.
Court-ordered mediation may be the best last option for thousands of homeowners in the foreclosure pipeline, as programs targeting the estimated 6 million delinquent home loans have been slow to put a dent in the crisis.
