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There are enough issues in trying to fix the problems with foreclosures in the marketplace. The primary one is that the holder of the mortgage rarely is the person lending the money initially. This creates a difficult time for the borrower to find a person to talk to when they are facing a foreclosure. So when a German bank is your lender but does not have an office in your town, state, or even in the United States, conversations on why you are behind and potential workouts are nearly impossible.

So when the politicians proclaim that they are coming in to fix the “foreclosure crisis” take it with a big grain of salt. Arnold Schwarzenegger recently  proclaimed that he brokered  an agreement to keep the biggest lenders in California from foreclosing on families. The only problem is that the deal he claimed to make was already the standard practice in the industry.

The governor took credit Tuesday for negotiating an agreement with mortgage lenders Countrywide Financial, GMAC Financial Services, Litton Loan Servicing and HomEq Servicing to help keep subprime borrowers in their homes.  Those four lenders, however, told The Bee on Wednesday that their lending policies haven’t changed and the governor didn’t get them to agree to anything new.
“The governor’s principles already are in alignment with what we already do,” said Larry B. Litton Jr., who heads Litton Loan Servicing. “Nothing’s substantially changed.” But that’s not what Schwarzenegger and his staff are telling the public. The Modesto Bee

The industry average on completing a foreclosure is 60,000 dollars for the lender. So when the  lender has the chance to work with the borrower and they feel the deal is not completely screwed, they will work with them. That is, if the lender is local to the situation.

So when Governor Arnold proclaims he has worked out a deal, shrug your shoulders and chalk it up to a politician claiming that they can control the tides. Because that is about the same chance a politician has in fixing the ills of the lending market by themselves through legislation or negotiation. Just ask King Canute.

Click here to for a Free Foreclosure search in your area if you are still interested in getting into the foreclosure game to find properties near your home.

Related posts:

1. Schwarzenegger Sees California Real Estate Recovery in 2009
2. Freddie Mac Says Typical Foreclosure Costs 60,000 Dollars
3. Did Congresswoman Richardson Lose Her House To Foreclosure?
4. Securitization of Mortgages May Make Foreclosure Much More Difficult
5. Could Secondary Mortgage Market Extend Morgage Misery?