AS HOME FORECLOSURES MOUNT, mortgage companies are knocking on doors, sending letters and making phone calls with a simple message for struggling homeowners: They’d rather modify your loan than foreclose.
EMC Mortgage Corp., a specialist with a $78 billion portfolio of subprime loans-for homeowners with weak credit-this week launched a 50-person team it calls ”the Mod Squad.” Members will spend an unlimited time on the phone with troubled borrowers, sifting through their bills to compute a workable monthly payment. In an industry that often rewards workers for getting off the phone quickly, the team is preparing to speak to just three people a day.
