This article is another public relations puff piece for the lending industry.
<em>"In many cases, the help will go to people who aren't behind in payments and who can probably afford to pay more, although not as much as the rate they'll pay when their current adjustable rate mortgage resets."
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In other words, they will help out those who need it the least.
<em>""What we're trying to do here is make sure all of our customers stay in their homes," says David Schneider, president of <strong>Washington Mutual Inc.</strong>'s home loan group, which said this week it is putting up $2 billion to help an expected 10,000 to 15,000 of its subprime borrowers facing problems. "It's not in our interest to take a house – it's not good for us, for the borrower or for us doing business in that community.""</em>
Yeah, right.
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"These programs come in the wake of congressional hearings and heightened interest in subprime lending as foreclosures begin to skyrocket."</em>
What a surprise!
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"Many of these foreclosures could be avoided. Studies show that nearly half of homeowners in trouble do not even contact their lender out of embarrassment or fear and end up losing their house... The lending community is hoping to head off some of these losses by getting to homeowners early before they get into financial trouble.</em><em>"</em>
Does anyone really believe this? People will do just about anything to avoid foreclosure. Based on the two statements above, one would believe the good guy lenders are reaching out to the poor homeowners and saving them from themselves by getting past their embarrassment to do a workout deal. What a line of BS.