New rules to avoid foreclosures - NBC12 - WWBT - Richmond, VA News On Your Side

New rules to avoid foreclosures

Richmond, VA (wwbt) - As millions of Americans fight to keep their homes, new rules will be introduced Tuesday to help people avoid foreclosure.

The federal government proposed the rules that will also help homeowners get an accurate account of their monthly mortgage payments.

The changes in the rules covering the mortgage servicing industry are mandated by congress.

Since the housing bubble burst, many homeowners say companies that process mortgages failed to verify information on foreclosure documents.

But the new rules would require borrowers to receive standardized monthly statements.

Mortgage services would also need to warn borrowers about interest rates or insurance changes and "good faith efforts" to contact borrowers at risk of foreclosure would be a requirement. Homeowners would also get options to avoid losing their homes.

Ways to improve record keeping and providing foreclosure counseling have also been added.

The rules should be introduced Tuesday.

 Copyright 2012 WWBT NBC12.  All rights reserved.

Powered by Frankly