With Help on Second Mortgage, Borrowers Still Face Foreclosure on Their First

by Isaac Benmergui, Esq on February 22, 2013

scales-houseFor many homeowners, the foreclosure crisis is not over yet. Having received help with their second mortgage, a homeowner may still face foreclosure of the first mortgage.

One year after reaching a deal with the state attorney generals in 49 states, the nation’s five biggest banks are touting their success in giving struggling homeowners more than $45 billion in relief. Not every homeowner with an underwater mortgage saw relief, however. There have only been about 71,000 borrowers, or 13 percent of the total borrowers received assistance on their primary mortgage, which was the main source of defaults and foreclosures. Another 170,000 homeowners received assistance on their second mortgage, which typically is a home equity line of credit that borrowers can tap for cash.

While homeowners have appreciated help on either mortgage, when they do not get help on the primary mortgage, it leaves them still at risk of losing their homes. Banks say they are working to assist homeowners and to fulfill all their obligations under the settlement, but foreclosures in some areas, like South Florida are setting records for the number of new foreclosure filings.

Getting Legal Help

The law offices of Isaac Benmergui can help you with your legal real estate needs; call 780-800-2510 or email Isaac@benmerguilaw.com for more information or to set up an appointment today.

 

 

 

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