Who's serving whom? Analyzing the frequency of loan servicer modifications for homeowners facing foreclosure

In September 2008, Housing Action Illinois surveyed housing counselors working for Illinois’ HUD-certified counseling agencies to evaluate how often specific loan servicing companies have offered workout plans to homeowners in order to avoid foreclosure.

Counselors were also asked about a variety of other issues, including what type of workout plans are most often offered, how often renters live in the properties being foreclosed on and how the demand for foreclosure counseling has changed over time.

The purpose of the survey was to determine whether current efforts to assist homeowners avoid foreclosure are working and, if not, what barriers exist that are preventing sustainable workouts. This report recommends public policy improvements, based on the survey findings, to increase the number of homeowners who can negotiate sustainable loan workout plans and to minimize the negative economic impact of the foreclosure crisis on individuals and communities.
 
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