Wednesday, September 16, 2009

FDIC launches a foreclosure prevention initiative

The U.S. government has tried to implement a number of different initiatives to help consumers with their mortgages in the current financial and economic crisis. These initiatives have helped, but not as much as would have been hoped. Now, today, the FDIC is launching a new foreclosure prevention initiative. How much this latest initiative helps will remain to be seen. There are probably other initiatives in the pipeline, but given the glacial pace of government bureaucracies, it could be awhile before the full force of all of these initiatives is felt by the average consumer having mortgage problems.

The new announcement says:

The FDIC is launching an initiative to help consumers and the banking industry avoid unnecessary foreclosures and stop foreclosure "rescue" scams that promise false hope to consumers at risk of losing their homes. This initiative includes outreach, referral services, and an information tool kit. Raising consumers' awareness of foreclosure "rescue" scams will give borrowers more confidence in knowing they are working with legitimate counselors and servicers to obtain a loan modification that could help them avoid foreclosure.

The main elements of this latest initiative are:

  • Outreach events for bankers and consumers.
  • A telephone and Internet referral service via the FDIC's Call Center at 1-877-275-3342 or, which directs consumers to legitimate counselors, mortgage servicers, and state and federal law enforcement agencies.
  • An information tool kit that is available at

That may not sound like much, but it is just one piece of the overall big picture.

-- Jack Krupansky


At 1:03 AM EDT , Anonymous CoachingByPeter said...

One factor that may affect anyone's foreclosed property is their credit score. It has great impact especially if one is trying to apply for a loan or credit card. If possible, it's better to pay mortgage loan on time to avoid foreclosure.


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