In case you somehow missed the bad news, which borders on impossible, foreclosures are a pretty big problem these days. In fact, the national housing market has been in turmoil for about four years now.

The United States government was initially slow to respond, failing to recognize the magnitude of house of cards (pun intended) that was about to collapse. Eventually, several housing/foreclosure assistance programs, along with their requisite acronyms, were gradually rolled out over time.

Not a single one, or all of them in combination, however, have had their intended impact on recovery. Not yet, anyway.

In fact, in a recent Gallup Poll, 58 percent of Americans want the government to do more to prevent additional foreclosures. In contrast, 34 percent of Americans are against increasing government intervention and prefer that “housing market resolve its problems in its own.”

Read the rest of this entry »

Slow ride, take it easy …

Many Americans are taking the Foghat approach to living these days, unable (or unwilling) to meet their monthly mortgage obligations and, in the process, living rent-free until theirs lenders evict them from their homes.

And with the average distressed homeowner able to live like this for nearly two years (674 days) it’s actually emerged as a popular “strategic” move because of the economic hardship plaguing millions throughout the nation. Indeed, according to a recent CNN Money report, nearly 40 percent of homeowners in default have not paid their lenders a single penny throughout the entire foreclosure process.

The other 60 percent in distress have made some sort of payment(s), ”looking for ways to make good with lenders and get their homes back.”

So how is it possible to live in a home for so long without paying a mortgage?

Read the rest of this entry »

If at first you don’t succeed try and try again.

Still looking for ways to cauterize the nationwide foreclosure crisis, the Barack Obama-led administration today announced another plan aimed at keeping roofs over the heads of unemployed homeowners. The latest effort is available to out-of-work homeowners who have FHA-insured loans, which is about 3,500 borrowers a month, according to the Los Angeles Times.

To put that into more perspective, the report indicates that “only 10% of some 50 million mortgage loans outstanding nationwide are backed by the FHA.”

The good news is that mortgage servicers who participate in the Home Affordable Modification Program (HAMP) will be required “whenever possible” to extend the program to distressed homeowners who qualify for the federal loan modification program, adding about another 1 million or more into the mix.

However, the HAMP candidates who qualify for the year-long forbearance could have the 12 missed payments tacked back onto their mortgage balance once they are on solid financial footing.

The report indicates that several “hurdles” are being lifted to qualify for the program, making it easier for unemployed homeowners to qualify for the assistance.

If you’re unemployed and would like to learn more about this latest foreclosure assistance program and others click here.

“Housing Angels,” an Arizona-based operation, appear to be onto something smart.

The program connects distressed homeowners with cash-laden investors (referred to as “Angels”), facilitating short sales to avoid foreclosure situations. But the sale is only temporary.

That’s because the “Angels” then rent the properties back to the original owners at reduced price. And when the homeowners are back on their feet financially, they have the opportunity to buy back their homes for much less than what they originally owed.

It’s a “win-win” solution that AZFamily.com illustrates in the following example:

Read the rest of this entry »