New Rules to Aid Struggling Home Owners
Here is the latest new to assist struggling home owners, the Consumer of Financial Protection Bureau stated that US banks will have to do more to help struggling mortgage borrowers keep their homes.
The Consumer of Financial Protection Bureau was established by Congress to protect consumers and help them understand their terms of agreement with their financial companies. The Consumer of Financial Protection Bureau or CFPB stated last week the mortgage servicers will have to evaluate all troubled home loan borrowers and find out if they qualify for any loan-assistance permitted by the investor. At this point there are no laws or mandates that require lenders to assist troubled or defaulted home loan borrows.
The Bureau also announced that the lender will not be able to start the foreclose process until the borrow has missed 4 payments. The 4 months period should allow the borrow time to submit a loan-assistance application. The lender will be required to provide documents on what programs that are available to the home owner
The new rule take place in a year, it should help alleviate the number of foreclosures. This will not prevent foreclosures but it may slow down the process. For more information please visit their website.
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