Non-profit bodies lauded the government for cracking down sternly on lenders and servicers.

Non-profit bodies lauded the government for cracking down sternly on lenders and servicers. The government has speeded up efforts to assist the borrowers in avoiding foreclosures. On Monday 30th Nov it kicked off a measure termed – Mortgage Modification Conversion Drive.

On a national scale this measure is trying assist the homeowners from converting the status of their loans from the trial stage to the permanent one. It is also holding the mortgage industry responsible for the tardy progress noted so far.

Margaret Rebollal and many others working in non-profit organizations chanted “What do we want? More permanent modification!” They were demonstrating in front the Treasury Department, Washington D.C. two weeks previously. Rebollal is the executive directory of the Community Services of Nevada. She with others had been invited to discuss housing matters with the legislators and especially with Senator Harry Reid. Rebollal said, “I gave him an example: a home across the street from me. Only two years ago it sold for $300,000. Now, it’s on the market for $90,000.”

Rebollal was one among her peers who was giving cheers to Obama government for this announcement of putting pressure on the lenders to convert speedily trial loans into modified permanent ones. She said, “They’ve been placing homeowners into temporary modification. Then they have to come back and start the entire process all over again, which is double work.”

In 2008 CSN had handled over 300 loan modifications. But with a staff of only two counselors work had not been picking up speed. Many of her clients are without jobs. One of them is Rodolfo Villegas who complained that a scam firm had cheated him of $3,500. Now the situation for him is grim as he is defaulting for the last 6 months. His dues have become $11,000. Now he has no funds but debts are increasing.

Rebollal is of the opinion that the demonstration by the group in Washington D.C. has had an impact but she feels more has to be done to be of real help to the hapless foreclosure victims. She added, “They need to do loan reductions. They are imperative because there is no property here what any homeowner paid for a couple of years ago.”

In the valley price of properties have fallen dramatically and most of those with mortgage loans are underwater with the loans being more than the worth of the house.”

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