Big Banks Working Out Mortgage Problems???

Last Wednesday the top banks appeared before congress to answer questions around the government bailout & mortgage work-outs for troubled loans. I found it interesting when one legislator pointedly asked, "Is there a requirement by your banks/departments that a borrower must be deliquent in their mortgage payments at least 2 months before you will work with them to modify/assist them?" To which all the CEO's of the banks present shook their heads "NO" and one went on to state that they will work with any borrower at any time.

As a local Realtor I've run into homeowners who tell me they have indeed been told by their lenders or their lenders representatives that they must be at least 2 months in arrears before they can apply for assistance.

I'm really curious to see who is making this "requirement". If you or someone you know runs into this "2 month" requirement, tell them to refrence C-Span's coverage & the CEO's of 5+ major banks that say it isn't so.

I'd love to hear comments about this.... please feel free to contribute your opinions


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