There has been little improvement in the foreclosure crisis.

Foreclosures are now at a record high—and expected to hit 2 million this year. It seems that companies like Bank of America and JP Morgan Chase are not prepared to handle it either. Bank of America, the largest lender in the US, had to create a special team of 8,000 people in their call center who are exclusively focused on helping people who can no longer afford their mortgage.

There is no argument that preventing foreclosures is good for the housing market and even better for the home owner; but it seems the usual fall back, the loan modification, isn’t what it used to be. Bank of America has only been able to modify 4% of loans that were more than 60 days past due.

So what’s the problem? Nobody has provided the answer to that question. The rationale lately has been missing paperwork or financial data. Perhaps the banks are overwhelmed with the staggering amount of people knocking on their doors for a loan modification. The banks could also be thinking that in the long-term these modifications still won’t be enough to help consumers make their payments.

Whatever the reason may be, it is clear that bankruptcy needs to be an option. Foreclosures need to be stopped and bankruptcy can be the way to do it. More and more people are coming to the realization that bankruptcy isn’t so bad—and it is worth keeping their family from total crisis.

Are you behind on your mortgage? Do you want to know how bankruptcy can help you? Request a free copy of the latest debt guide, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” and learn how to keep you and your family in your home.

Tags: Bank of America, bankruptcy attorney, foreclosure increase, foreclosures, JP Morgan Chase, loan modifications, mortgage delinquincy, options for mortgage delinquincy

This entry was posted on Wednesday, September 9th, 2009 at 10:00 am and is filed under bankruptcy. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.