Regions Bank has helped almost 20,000 families avoid and stop foreclosure with their assistance program. The bank created a pro-active foreclosure prevention program called the Customer Assistance Program. Unlike traditional mortgage loss mitigation programs that are offered by other banks and financial institutions that typically wait for the struggling customer to call and ask for help, Regions Bank proactively identifies customers and homeowners who may be at risk of falling behind on their mortgage, those who are facing foreclosure, and then Regions approaches them to provide aid so they stay current.
The program has been in place in high-risk areas such as the Atlanta Metro and South Florida metro area in late 2007. The Birmingham Alabama based bank has now expanded this assistance program to the rest of its 16-state market, and has also expanded the program to include debt consolidation.
Regions Bank is advertising the program and pushing it across its markets to increase awareness of the foreclosure assistance program with both its employees and customers. In addition, Regions Bank is marketing the mortgage assistance program to its customers and loan officers directly as well. Any mortgage borrower who has an adjustable loan resetting or otherwise coming up for an adjustment will be contacted before the loan resets. The bank will also reach out to borrowers who are in danger of moving closer to the foreclosure process.
In total, during 2008, Regions Bank provided over $15 billion in assistance from the Customer Assistance Program during 2008. Thousands of homeowners and families have been helped. More.
Times have changed, and Regions Bank is adapting. For example, before the foreclosure crisis exploded across the nation, many banks would wait until a customer was several months behind on the mortgage loan before contacting them or exploring other options for both parties. Now Regions is working with borrowers long before they are delinquent.
How do I receive assistance from Regions Bank?
In order to receive assistance, typically, the bank will require a letter be provided to them outlining the problem, what steps the borrower wants to and can take to save their home, and how long it is expected to last. Regions Bank also will ask for financial statements from the borrower to prove the hardship exists.
Both the homeowner and Regions benefits. As in most cases it is less expensive for Regions to work with the customer to help them save their home than to take the collateral. This is especially true in areas with high foreclosure rates as resale values have plunged. Regions also helps consumers with credit card assistance programs.
Another benefit. The bank also said that as long as the customer receives mortgage assistance before the loan payment is late in being paid, the process is not reflected on a credit report and does not hurt the homeowners credit.
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