The rapid increase in foreclosures this year has led many lenders to consider loan modification as a method of loss mitigation
Hermosa Beach, CA (PRWEB) August 26, 2008
Since its launch 6 months ago, The Wisdom Companies, LLC has seen tremendous growth in traffic to their latest consumer-aid site, http://www.HomeForeclosureFighter.com , targeted at the millions of Americans facing foreclosure following the housing crisis earlier this year. With statistics pointing to foreclosure filings increasing 93% over last year and projections for 2 million foreclosure filings in 2008, HomeForeclosureFighter.com provides distressed home owners with information and resources about loan modification and other alternatives for avoiding foreclosure. Already this year, the site has helped nearly 100,000 homeowners connect with Foreclosure Prevention Specialists that specialize in helping borrowers stop foreclosure.
"The rapid increase in foreclosures this year has led many lenders to consider loan modification as a method of loss mitigation," explained Mark McKendry, CEO of The Wisdom Companies. "Our goal for the website is to help connect homeowners facing foreclosure with Foreclosure Prevention Specialists, since many homeowners are not aware of loan modification or how to start the process."
Loan modification involves renegotiating the terms of a loan that are more favorable to distressed borrowers, while still maintaining the lender's interest in the debt. Modification of the loan can involve lowering the interest rate, changing the rate from adjustable to fixed, lengthening the term of the loan, and lowering the principal, as well as other less common approaches.
Due to the number of foreclosures and the high cost of legal proceedings typically associated with the foreclosure process, loan modification has emerged as one solution for the crisis. The housing relief bill passed by Congress in late July was centered around a package of loan guarantees to help distressed borrowers refinance into market-rate mortgages with more favorable terms. Just last week, the FDIC announced a plan to systematically modify the loans of at least 25,000 homeowners with mortgages held by failed lender IndyMac.
HomeForeclosureFighter.com hopes to fill a gap in online services that cater to those facing foreclosure. Borrowers can learn more about the alternatives to foreclosure and the foreclosure process through the resources offered by the site. For those seeking the help of a Foreclosure Prevention Specialist, they can simply provide some basic information about their situation and get matched with service providers who may provide competing alternatives to help the borrower avoid foreclosure. The borrower can review the proposals and choose the option that best meets their needs, although they are under no obligation to accept any of the proposals.
About The Wisdom Companies:
The Wisdom Companies is a premiere provider of targeted online marketing services. The company streamlines the client acquisition process by matching targeted consumers with top service providers. Since 2002, Wisdom has connected over one million highly motivated consumers with financial services firms in the mortgage, insurance and credit industries.