In the year 2008, quite a number of homeowners troubled by foreclosure were helped by private mortgage insurance companies.
Genworth Financial, a private insurance company, prepares an annual Foreclosure Prevention Scorecard which contains significant statistics regarding matters related to foreclosure. Just lately, it has released the scorecard for 2008 where it is stated that over the past 12 months, more than 11,000 families were given assistance.
Among the states which received the most help were Michigan, Ohio and Florida.
Some cynical homeowners say that private insurance companies are not of much help in foreclosure prevention but figures show otherwise. There are some dedicated insurance companies who do their best in saving families from losing their property. They make it a point to help all involved parties — not only the borrowers but as well as mortgage servicers and investors.
There was a sharp increase of 56 percent from 2007 to 2008 with regards to cases which were worked out. In particular, half of the resolved cases involved repayment plans and around 32 percent involved modified loans.
On a countrywide scale, almost 90 percent of properties were saved. The rest were households who had to undergo either short sale or deed in lieu. Furthermore, more than half of those who got help were those who badly needed the assistance — households whose monthly payments are lower than $1000.
When a borrower has already reached four months of delinquency and their mortgage servicer has not yet done any workout measures, the insurance company gets in touch with the borrower to inform them about workout options and the help that they can get. For some distressed homeowners who really can not afford to catch up on payments, the company helps them in selling the mortgage property. That way, the borrowers would not have to undergo foreclosure. These are just some of the assistance provided to homeowners who are facing foreclosure.
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