Do All Mortgage Companies Really Want To Help You...Part 2

In our last message, we talked about how some mortgage companies talk a good game when it comes to helping homeowners when they fall behind on payments. Many of them say that they want to help their borrowers get current, but unfortunately fall short. The whole idea about having an internal default unit is suppose to be to help homeowners get current when life events causes them to fall behind.

Over the next few weeks, I'll be discussing several alternatives that I believe mortgage companies could initiate that would both reduce the number of delinquencies, and create a more positive relationship with its homeowners.

Since we communicate on a daily basis with many different mortgage companies across the nation, we understand that their primary concern above anything else, is to have the money they lent out re-paid. The problem is that when their message of wanting to work with and help homeowners conflicts with their aggressive and sometimes humiliating collection actions.

Since foreclosures across the country are reaching record levels, here are some solutions that I believe mortgage companies could put in place to both get the money owed to them returned as well as helping homeowners in a difficult time.

Here's what I suggest:

1. Institute an online homeownership training program focused towards financial management. This program would be mandatory for any homeowner that falls behind 90 days.

This program should last for at least 60-90 days, and should require the successful completion to ensure foreclosure actions don't continue. As a benefit of participating in the program, no foreclosure action will be taken while they are completing this program. If they don't participate in the program, however; foreclosure actions will continue as normal.

This program would provide a number of positives that would contribute to reducing the number of delinquencies and would also be a great customer service tool that will build stronger relationships with homeowners that fall behind. It demonstrates that the mortgage company not only cares about them, but is being an active partner in helping them get back on their feet when they've fallen behind.

That's all for now, I'll continue with this hot topic in next weeks email, and go into more detail.