The numbers are impressive and also oppressive at the same time. Over 600,000 foreclosures were reported between January and July of this year and there are no signs of the trend slowing up.

Since the beginning of the crisis lenders have made it clear they do not wish to own any property, yet as the qualifications for loans and credit rules have become far more stringent homeowners are now faced fewer and fewer options for dealing with them. Lenders are overwhelmed and many are offering little, if anything at all, in the way of answers to the problem.

Homeowners looking to stop foreclosure are finding some lenders no longer offering loan modifications or refinancing options. Lenders instead are asking homeowners to call as soon as they realize they have, or may have, a problem making their mortgage payment so that other options such as temporary payment suspension, putting missed payments at the end of the loan term, or extending the loan period to lower payments.

Research reports that only about half of the homeowners facing foreclosure make the call. Of those that do contact their lender at the first sign of trouble they are reporting that many lenders are unsympathetic and non-responsive. Many are reporting being placed on hold for over an hour, being shunted around from department to department in a perpetual shuffle trying to speak with the right person, getting dropped during transfers or finding full voice mail boxes.

Adding another twist to this story is the concern over those mortgages bought by foreign investors. These fall under globalization rules which make it difficult to alter a loans term. Many of the mortgages sold in the secondary market are reporting some of the highest default rates.

What has to happen before a turnaround in the current foreclosure crisis can begin a turnaround? Lenders that were slow on the uptake in dealing effectively with distressed borrowers need to implement better lines of communication. Homeowners facing a possible home loan default and looking to avoid foreclosure are going to have to be more proactive in contacting their lenders.

In the meantime thousands of homes are going into foreclosure across the country with several months left this year to set yet another record.

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