FreeDIYkits Loan Modification Blog

At the start of the foreclosure crises, personal finance experts urged struggling homeowners to contact their lenders if they started to fall behind on their mortgages. The lenders want to do everything they can, homeowners were told, to avoid a foreclosure.

Third-quarter declines in defaults and repossessions are probably due to an increase in loan modifications and lenders’ reluctance to put more distressed properties on the market, data firm says.