Research from the Joint Center for Housing Studies at Harvard University — via Coloradoan.com — offers two more important reasons to stop foreclosures and to keep families in their homes.

In no particular order:

1. Homeowners typically enjoy stronger family and neighborhood stability.
2. Children perform better in school and are more likely to participate in civic activities.

While these points seem obvious, it’s not uncommon for them to be overlooked. That’s because “bad credit” and other financial problems often take center stage early on in the foreclosure process.

Without a doubt, foreclosures devastate more than just personal bank accounts and credit reports — they affect countless families and neighborhoods nationwide now and in the future.

Fortunately, foreclosure assistance and advice is usually only a few phone calls away. Don’t be afraid to reach out to local agencies or non-profit housing organizations in the area for help as soon as possible.

It’s often a simple solution to a much larger and profound problem.

“Real estate analysts say South Florida’s housing market peaked late in 2005, and would-be flippers stopped buying in 2006. People who bought condos before 2005 might still make money or at least break even if they sell soon, the analysts say, but those who bought at the height of the mania [the speculative craze of 2004 and 2005] stand to lose a bundle … some are figuring out how to profit from the downturn … people [are often] willing to resell preconstruction units at their original price.”

– A feature in today’s New York Times explores the speculative real estate market in South Florida, which is beginning to cool after a significant boom these last few years. In fact, investors who purchased homes and condos during preconstruction phases are looking for ways to get out of their contracts or are walking away from their deposits. To stay on top of the growing real estate listings and deals in South Florida click here.

Legislation was introduced today in New Jersey that would create stricter requirements for mortgage solicitors in an attempt to reduce the growing number of foreclosures, according to the Herald News.

Currently in the Garden State mortgage solicitors — who are also known as loan officers or originators — need to fill-out a one-page form and fork over about $100 to issue loans on behalf of New Jersey lenders.

It’s not much in terms of applicant due diligence, considering families often plunk down hundreds of thousands to realize their dreams of homeownership.

And that’s the reason Trenton politicians and two state mortgage associations are throwing their support behind this bill.

Here’s a snip:

“… [the] legislation today that would require training, licensing exams and criminal background checks for loan officers. While mortgage-company owners must follow certain regulations, few of their employees do…. Many experts think the profitable commissions and low-education requirements for loan officers help contribute to skyrocketing foreclosure rates — as homeowners are pushed into mortgages they can’t afford.

Housing advocates stress that licensing requirements aren’t a magic bullet. Pending legislation in Congress and some state legislatures could do more to clean up the mortgage industry, they say, by holding lenders responsible for a borrower’s best interest.

According to the clip, as the housing market boomed over the last several years, the ranks of unregulated loan officers increased and flocked to the subprime market because these loans translate into big commissions.

In these cases, it appears that the mortgage servicers are looking out for their own interests rather than the homebuyers.

The moral of the story: Find a loan officer with a solid track record — one who comes highly recommended. Ask friends, family members Realtors® — anyone who has experience buying homes — about a trustworthy mortgage servicer.

It will pay off in the long-run … literally.

With about 4,743 active foreclosures on its books in March 2007, Colorado is near the top of the national list when it comes to homeowners defaulting on their mortgages.

To help distressed homeowners in the Centennial State keep their homes, the Colorado Division of Housing established a foreclosure hotline in December 2006 that offers free advice and counseling.

And, according to a recent article from the Denver Business Journal, at least four out of five people who have called [the hotline] over the past five months have avoided foreclosure.

Here’s a snip:

“Specifically, 7 percent of callers who received counseling later lost their homes to foreclosure. Another 12 percent may have lost their homes, but this group includes people in bankruptcy, people who could not later be located, and people who later chose to work with for-profit foreclosure consultants, officials said.

Twenty-two percent of callers sold their home before foreclosure, 15 percent initiated a repayment plan, 13 percent modified their mortgage, 6 percent brought their mortgage current and 5 percent deeded the property to the lender.”

The Colorado foreclosure hotline, which connects nonprofit counseling agencies across Colorado to callers trying to avoid foreclosure, can be reached at 1-877-601-HOPE.

There are some helpful tips today in the Orange County Register for homeowners who are searching for ways to catch up on their mortgage payments and to avoid foreclosure.

Here’s the quick list:

• Talk to your lender as soon as possible
• Get financial counseling
• Consider selling before foreclosure is final

The overriding theme of the article, which was written with the help of industry experts, is to act fast.

We couldn’t agree more — the quicker a distressed homeowner reaches out for assistance, the more options he or she will have from which to choose.

And, if for some reason a resolution cannot be agreed upon to save the home, at least these homeowners will have more time to put their properties on the market with the hopes that buyers come along to bail them out.

Filing for bankruptcy is the absolute last option, as well as one of the worst.

Consider this:

“Filing for bankruptcy isn’t a good option. Bankruptcy will not only ruin your credit but, depending on whether you file Chapter 7 or Chapter 11, the lender may still be able to foreclose or the court may order the sale of your home.”

The article also touches on a non-conventional strategy called the short sale. Essentially, this means that the house is sold for less than the actual loan amount.

However, the lender must agree to the terms of the price beforehand and be willing to accept the discounted offer.

Lenders sometimes do this to keep foreclosures off their books and to ensure that more money is not lost while the home is wasting away on the market.

In short, when it comes to foreclosure there’s no silver bullet solution that cures all situations. Fortunately, there are programs, services and options available that help distressed homeowners keep the keys to their front doors.

Therefore, always remember that it is often a race against the clock — give yourself the time you need to arrive at the resolution that best fits your needs.