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President-elect Barack Obama says preventing foreclosures is ‘number one’

January 8, 2009 By 1 Comment

Barack Obama

“I think the most important thing when it comes to declining home values is number one, preventing further foreclosures. That just erodes home values across the board.”

– President-elect Barack Obama comments on the importance of preventing the recent surge of foreclosure situations from rising any further across the nation in a recent Associated Press article. The incoming administration, which takes charge January 19, is considering whether or not to direct “some of the remaining bailout money to foreclosure prevention.” There is currently about $350 billion remaining of the $700 billion that was earmarked back in late 2008 to revive the economy and inflate the credit market. The current plan on the table would provide lenders with incentives to modify loans that are either already in default or headed in that direction. It is estimated that the plan could prevent 1.5 million foreclosures.

Filed Under: Foreclosure Assistance, Foreclosure News, Stop Foreclosure

Report: Loan modifications ‘not working’ to help stem foreclosure tide

December 10, 2008 By 1 Comment

falling homes

Distressed homeowners have several available options to avoid sliding into foreclosure, whether it’s negotiating short sales or working with lenders to adjust their monthly mortgage payments.

The latter solution is referred to as a loan modification. And financial institutions — especially in this turbulent market — will often rework loans to ensure that families can afford to stay in their homes.

That’s what it is supposed to do, anyway. Today an alarming report indicated that homeowners are having trouble paying their mortgages despite having them tweaked.

Here’s a snip:

“More than half of delinquent borrowers who had their mortgages reworked earlier this year to avoid foreclosure were behind on their new loan payments after just six months, a federal regulator said yesterday. John C. Dugan, US comptroller of the currency, told a housing forum yesterday that data his agency is collecting show the increase in repeat defaults by homeowners is ‘remarkably high.’”

Perhaps more troubling is the finding that homeowners who have their loans modified are having trouble making the reduced payments just six months later and are “redefaulting.” One reason for that, according to the report, is that several of the modifications actually end up costing homeowners more each month after “rolling in past-due principal, taxes and insurance.”

That doesn’t appear to be a very attractive solution and more than likely only makes a bad situation worse.

So what are cash-strapped homeowners supposed to do?

The most important thing to keep in mind is that it’s best to identify and address the situation as early as possible. Contact the lender and tell them your situation. If you meet resistance or feel that the options presented to you are not good then make a few more phone calls.

There is likely a local, county or state counseling service that can point you in the right direction. Be sure to also reach out to the professionals at CreditLawGroup.com who are always standing by to lend a hand.

The worst thing you can do is nothing … or not give it 100 percent effort.

Filed Under: Foreclosure Assistance, Loan Modifications, Stop Foreclosure

Foreclosure relief and housing bill gets approval from President Bush

July 30, 2008 By 1 Comment

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President George Bush today signed the Foreclosure Prevention Act into law — a bill that he threatened to veto several times since it was introduced earlier this year.

The bill is perhaps the most significant housing legislation to pass in decades, helping resuscitate a struggling nationwide housing economy and keeping homeowners who are facing foreclosure in their homes.

Of course, the main thrust of the initiative is to keep people in their homes. And to do that the program allows for homeowners who are “upside down” on their mortgages (owe more to the bank than the homes are worth) to obtain more affordable mortgages backed by the Federal Housing Administration (FHA).

Distressed homeowners will be required to first show that they can afford new reamortized loans before reworking their existing mortgages. In addition, lenders would have to agree to the new terms, which could translate into losses.

However, lenders would likely rather help homeowners stay in their homes rather than enduring more costly and drawn-out foreclosure situations.

Of course, the bill also includes a tax credit of up to $7,500 for first-time homebuyers who purchase houses between April 9, 2008, and July 1, 2009.

For more on the vast benefits of the Foreclosure Prevention Act click here. To get started searching for a home — and taking advantage of the tax credit — click here!

Filed Under: Foreclosure Assistance, Foreclosure Tax Credit

Foreclosure tax credit could come soon

April 3, 2008 By Leave a Comment

A United States Senate ad hoc committee — headed by Senators Christopher Dodd (D-CT) and Richard Shelby (R-AL) — are currently spearheading a bi-partisan housing rescue bill that could include a $7,000 one-year tax credit for purchasers of foreclosed homes if the legislation is passed.

In addition, the federal government would earmark $4 billion in grants to allow local governments to buy and refurbish foreclosed properties for resale or for use as “low-income” rentals. And the bill includes $10 billion for local housing agencies to refinance subprime loans and provide new mortgages for first-time homebuyers.

That’s not all.

According to MortgageNewsDaily.com, $100 million more will be allocated to expand counseling for homeowners at risk of defaulting on their loans.

This is good news for the thousands of homeowners nationwide struggling to make ends meet and who are desperate for some sort of relief. The bill would also encourage buyers to purchase Real Estate Owned (REO) properties, helping lenders and other financial institutions get them off their books faster.

And more important, it gives you more of a reason to purchase foreclosed properties (not like you needed another one) with a huge tax break on top of already discounted homes.

So what are you waiting for? Start your foreclosure search today RIGHT HERE and be one of the first to take advantage of this great news!

Filed Under: Foreclosure Assistance, Foreclosure News, Foreclosure Tax Credit Tagged With: , ,

How to beat foreclosure?

February 29, 2008 By Leave a Comment

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Joe Lents of Boca Raton, Fla., apparently requested proof from Washington Mutual Inc. — the lending institution that claimed to own the promissory note to his home — that it was indeed the rightful mortgage owner when foreclosure proceedings were initiated.

Washington Mutual Inc. couldn’t come up with the proper paperwork, and Joe has been living in his $1.5 million home since 2002 without making a single mortgage payment, according to Tampa Bay Online.

Here’s a snip from Joe:

“If you’re going to take my house away from me, you better own the note.”

Apparently, short cuts when large “bundles” of mortgages were bought and sold from 2003 to 2006 resulted in more than a few clerical errors — the assignment of ownership wasn’t always properly completed.

And when the original lender no longer exists — more than 100 mortgage companies ceased operations in 2007 alone — unlucky homeowners can all of a sudden find themselves in very lucky situations.

Just ask Joe.

For those not fortunate enough to share these same circumstances (and the probability is low) feel free to take advantage of a free consultation about how to beat foreclosure right here.

Filed Under: Foreclosure Assistance, Foreclosure News, Stop Foreclosure
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