Survey Shows Mortage Lenders Falling Short

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(Sacramento, CA)
Monday, March 3, 2008

The figures were released Monday by a consumer advocate group.

Kevin Stein is with the California Reinvestment Coalition, which surveyed nearly 40 mortgage counseling agencies. 

"The most distressing finding was when asked what were the most common outcomes for their borrowers, the counseling agencies reported, 72% of them, that foreclosure was a very common outcome."  

Stein also says about half of the agencies polled say short sales are also prevalent. In a short sale, a home is sold for less than the amount owed on the mortgage, which can leave the borrower facing an income tax hit.

The California Reinvestment Coalition is a group of nonprofit organizations and public agencies that advocate for the poor and minorities.