Foreclosure

==Renegotiation alternative==
In the wake of the [[United States housing bubble]] and the subsequent [[subprime mortgage crisis]] there has been increased interest in renegotiation or modification of the mortgage loans rather than foreclosure, and some commentators have speculated that the crisis was exacerbated by the "unwillingness of lenders to renegotiate mortgages".<ref name=Adelino2009/> Several policies, including the U.S. Treasury sponsored Hope Now initiative and the 2009 "Making Home Affordable" plan have offered incentives to renegotiate mortgages. Renegotiations can include lowering the principal due or temporarily reducing the interest rate. A 2009 study by Federal Reserve economists found that even using a broad definition of renegotiation, only 3% of "seriously delinquent borrowers" received a modification. The leading theory attributes the lack of renegotiation to [[securitization]] and a large number of claimants with [[security interest]] in the mortgage. There is some support behind this theory, but an analysis of the data found that renegotiation rates were similar among unsecuritized and securitized mortgages. The authors of the analysis argue that banks don't typically renegotiate because they expect to make more money with a foreclosure, as renegotiation imposes "self-cure" and "redefault" risks.<ref name=Adelino2009>Adelino et al. (2009). [http://www.bos.frb.org/economic/ppdp/2009/ppdp0904.pdf Why Don’t Lenders Renegotiate More Home Mortgages? Redefaults, Self-Cures, and Securitization] {{webarchive|url=https://web.archive.org/web/20101225073004/http://www.bos.frb.org/economic/ppdp/2009/ppdp0904.pdf |date=2010-12-25 }}. Federal Reserve Bank of Boston Discussion Paper.</ref>
Government supported programs such as Home Affordable Refinance Program (HARP) may provide homeowners the ability to refinance their mortgages if they are unable to obtain a traditional refinance due to their declined home value.<ref>[http://portal.hud.gov/hudportal/HUD?src=/topics/avoiding_foreclosure/ "Avoiding Foreclosure"] {{webarchive|url=https://web.archive.org/web/20120808105410/http://portal.hud.gov/hudportal/HUD?src=%2Ftopics%2Favoiding_foreclosure%2F |date=2012-08-08 }}, ''HUD.GOV'', July 20, 2012</ref>

A dual-tracking process appeared to be in use by many lenders, however, where the lender would simultaneously talk to the borrower about a "loan modification", but also move ahead with a foreclosure sale of the borrower's property. Borrowers were heard to complain that they were misled by these practices and would often be "surprised" that their home had been sold at foreclosure auction, as they believed they were in a "loan modification process". California has enacted legislation to eliminate this type of "dual-tracking" – The Homeowner Bill of Rights – AB 278, SB 900, That went into effect on January 1, 2013.<ref>[http://oag.ca.gov/hbor California Homeowner Bill of Rights] {{webarchive|url=https://web.archive.org/web/20120912124253/http://oag.ca.gov/hbor |date=2012-09-12 }} Reviewed 2013-07-20</ref>
Description	What you type	What you get
Italic	''Italic text''	Italic text
Bold	'''Bold text'''	Bold text
Bold & italic	'''''Bold & italic text'''''	*Bold & italic text*
Description	What you type	What you get
Reference	Page text.<ref>[https://www.example.org/ Link text], additional text.</ref>	Page text.^[1]
Named reference	Page text.<ref name="test">[https://www.example.org/ Link text]</ref>	Page text.^[2]
Additional use of the same reference	Page text.<ref name="test" />	Page text.^[2]
Display references	<references />	↑ Link text, additional text. ↑ Link text