I returned yesterday from the National Association of Realtors® Convention in Orlando.  In meeting with Realtors® from around the country, I learned that homeowners not yet behind in their mortgage payments were receiving a cold shoulder from their lenders.  In many instances people who were starting to feel stress in their budget and called their lender to see if anything could be done were told to come back when they were behind in payments.  This was shocking to me.  Responsible homeowners are told to damage their credit rating before anything would be done.

Yesterday the Federal Home Loan Agency announced a new program, the Streamlined Modification Program, designed to help homeowners modify their mortgages.  Once again, homeowners must be at least three months behind in their mortgages in order to qualify.  Nothing is said about those who have not yet fallen behind.

Only CitiGroup has announced a Citi Homeowner Assistance  that rewards those who anticipate difficulty, rather than only those who are already underwater with their mortgage and behind in payments.  According to reports, Citi's Homeowner Assistance program involves contacting about 500,000 homeowners in areas with decreasing prices, and offer loan modification.  What a concept!  They are offering to provide service and help to their customers, an attitude sorely lacking among other financial institutions.

When all lenders open the door to their homeowners and make it possible for scared homeowners to review their options, our mortgage crisis will be over.  Is it a bailout?  Quite possibly, but bailing out those in need will save the home values of those who acted more responsibly in the past, or who are fortunate enough to have no employment issues yet.  In my opinion, any homeowner who has the courage to acknowledge a possible calamity should be helped in any way possible as soon as possible.  Our neighborhoods and homeownership in general will benefit.