New Virginia Law Aims At Easing Foreclosures

A law that took affect on July 1 requires that lenders and mortgage-servicing companies send delinquent borrowers with high-interest loans the names of housing counselors who can provide foreclosure-prevention guidance.

"The new law requires that lenders and companies that collect mortgage payments make available a 30-day grace period to borrowers who ask for help.

By slowing down the foreclosure process, the new regulations could buy time for homeowners seeking to work out arrangements with their lenders."

Though the law requires a list of housing counselors to be sent and a 30-day grace period, there’s nothing that says that the lenders have to work out an arrangement with borrowers. Unless banks are more willing to work out arrangements with borrowers, this law may only delay the inevitable.

Source: PilotOnline.com