Virginians suffering from backlog of loan modifications

Research and analysis is showing that mortgage delinquencies have gone down while foreclosure rates are going up. In other words, Virginians are paying their mortgages, but the foreclosures are continuing to rise.

Virginians in Prince William County have taken to protests to bring attention to the fact that many paying families are being foreclosed on improperly by the big banks. Specifically they are calling attention to the massive backlog of loan modifications.

On a related note, Bank of America’s mortgage servicing rating was downgraded by Moody’s.

Homeowners in South Carolina may actually get some relief from these faulty foreclosures thanks to the South Carolina Supreme Court:

The Supreme Court of South Carolina on Tuesday ordered lenders not to proceed with foreclosures in the state until they can demonstrate that they have given troubled homeowners a meaningful opportunity to modify their loans.

Chief Justice Jean H. Toal, who issued the order, said in an interview that the action stems from frustration with lenders that are regularly negotiating loan modifications with borrowers while simultaneously pressing ahead to foreclose on those borrowers.

Unfortunately there is no effort whatsoever from Virginia’s leaders to bring relief to Virginia’s paying property owners.

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