How Can We Stop Accidental Foreclosures?

How Can We Stop Accidental Foreclosures?

If you’ve been watching the news, you’ve probably noticed that there have been a lot of stories about accidental foreclosures. Too many, perhaps. So, what can we do to make sure that someone isn’t forced to relocate because of a silly mistake? Some banks are trying to solve this issue with a single point of contact.

Most frequently, accidental foreclosures are caused by miscommunication. When we say “miscommunication” we’re talking about the banks losing paperwork, mortgage modification applications, and simple phone messages. As a result, many people have lost their homes and have had to move out.

Financial experts – and those who just have a good understanding of organization in general – blame the confusion on too many hands in the so-called cookie jar. When too many employees handle the same case, things tend to get lost in the shuffle – and people get forced to move.

Some states are considering putting laws into effect that require a single point of contact, and we think that’s a good thing. A certain employee would be responsible for handling certain accounts, and so on. One employee per account might make things go a lot more smoothly and reduce the number of accidental foreclosures our company sees.

It really is unfortunate when someone has to move out of their home because of a stupid mishap at the bank – whether there was a missed call or a lost file. No one should have to experience the stress of a foreclosure when they don’t have to.

Jon Huser