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Real estate short sale: More tips to stop foreclosure

April 2, 2007 By 10 Comments

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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.

Filed Under: Real Estate Short Sales, Stop Foreclosure

Schumer looks to prevent foreclosures in New York

March 26, 2007 By 7 Comments

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With more than 91,000 New Yorkers in danger of losing their homes to foreclosure by the end of 2008, Sen. Charles Schumer (D-N.Y.) is looking to put an end to the subprime loans that are causing the problems, according to a recent article on NYDailyNews.com.

In fact, an analysis by his office revealed that an estimated 1.8 million American families — including nearly 23,000 in New York City and 19,000 in Nassau and Suffolk counties — could face foreclosure within the next two years when their subprime loan rates increase.

Here’s a snip from Chuck:

“For thousands, the American dream of homeownership has turned into an un-American nightmare. Thousands of middle-income and lower-income New Yorkers were tricked into borrowing these loans, and they are loans designed to fail. The first step is making sure that borrowers are protected from these usurious lenders. It’s long past time that we ensure that American families are protected from loans that promise them the world and then bury them in debt.”

To address the problem, Schumer recommends a response on the federal level that includes:

  • establishing a national regulatory system to target “rogue” mortgage lenders and brokers;
  • eliminating “liar loans” by creating a suitability standard for borrowers;
  • prohibiting prepayment penalties, stated-income loans and “pick a payment” gimmicks that coerce borrowers into signing higher loans than they cannot afford; and
  • creating a state foreclosure prevention task force.

It’s important to note that bad loans are not the only factors that contribute to foreclosure increases. Illness, divorce, job loss and other personal issues often affect distressed homeowners and cause them to fall behind on mortgage payments.

Furthermore, not all subprime loans result in foreclosure.

Therefore, it’ll be interesting to see how the interests of homebuyers and lenders are both represented if and when tighter restrictions are implemented.

Stay tuned.

Filed Under: Foreclosure.com News, New York Foreclosure Homes, Stop Foreclosure

Get foreclosure help in Maryland

March 21, 2007 By 7 Comments

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Carol Gilbert from the Goldseker Foundation has some great advice for distressed homeowners in Maryland, anywhere for that matter, in an article today in the Los Angeles Times.

Here’s a quote:

“Borrowers may think that they are delaying foreclosure by not calling the lender – the opposite is true. The longer a borrower waits, the faster foreclosure will proceed and the fewer options there are to slow or reverse it from happening.

Too often, homeowners who default on their mortgages wait until the last minute to seek foreclosure assistance. It’s a decision that in the long run comes back to haunt them.

In most cases, lenders, states and nonprofit organizations have programs in place that can stop foreclosure. That’s because no one, aside from opportunistic investors, ever really wins in foreclosure situations.

According to the article, one of the first steps to take is contacting a housing counselor. Reaching out to the lender to discuss possible options is also an important initial step.

The article offers a few resources for Maryland residents, including:

  • Dial 311 (in Baltimore) to be connected to a free counselor at a HUD-approved nonprofit
  • Call 888-995-HOPE (4673).
  • Visit the St. Ambrose Housing Aid Center ((410) 366-8550) for free counseling

Whether it’s refinancing, deferring payments or relocating, options abound when it comes to avoiding bank repossession.

Inaction, however, should not be one of them.

Filed Under: Foreclosure.com News, Maryland Foreclosure Homes, Stop Foreclosure

Foreclosure rescue scams: Don’t fall victim

March 7, 2007 By 7 Comments

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When a homeowner falls behind on mortgage payments, the reality of a looming foreclosure filing and bank repossession can cause fear and desperation.

During these trying times, it’s not uncommon for some homeowners to make poor, uninformed decisions and fall victim to foreclosure rescue scams.

Unfortunately, once homeowners are in default and foreclosure proceedings begin it becomes a matter of public record. Armed with this information, crooks often approach these distressed homeowners with bogus or misleading assistance that eventually make bad situations worse.

The Boston Herald recently highlighted such a scheme, which is, ripping through Boston’s poorest neighborhoods.

Here’s a snip:

… a cottage industry of shady small-time speculators has sprung up to target these struggling homeowners. One popular tactic: persuading a beleaguered homeowner faced with foreclosure to “temporarily sign over his home in exchange for financial assistance. You can guess the rest. Another ploy: offering to make some phone calls – to pull a few strings – on behalf of the homeowner with the lender. Of course, all that is needed is a few thousand dollars up front.

Fortunately, the new scam has caught the attention of the Attorney General, according to the article. And, the office has brought two rescue scammers to court and is exploring additional cases.

The Massachusetts example detailed above represents a small slice of this nationwide problem. With the increase in foreclosures across the board, state governments and local authorities are finding it harder and harder to crackdown on each and every rescue scam.

It’s critical that homeowners don’t fall into this trap. Therefore, anyone who sends fliers via mail or knocks on front doors talking about quick and harmless bailout offers should be considered suspicious.

And, always remember that viable resources and options do exist to avoid foreclosure. For starters, fill out this form to speak with a reliable professional.

Most important, however, is to remain as level-headed and as cool as possible.

Good help is out there, it’s just a matter of finding it before bad help finds you.

Filed Under: Foreclosure Rescue Scams, Foreclosure.com News, Stop Foreclosure

Ohio earmarks funds to stop foreclosure

February 12, 2007 By 2 Comments

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With 8,940 active foreclosures, the fifth highest total among the 50 states, the Ohio Department of Development has set aside $1 million to prevent foreclosures.

Loans are available on a first-come-first-served basis through the Columbus Housing Partnership and 11 other nonprofit agencies participating in the Ohio Foreclosure Prevention Initiative, according to the Columbus Business Journal.

The Columbus Housing Partnership Web site states that the private, nonprofit organization, provides quality, affordable housing and related services to low to moderate income households in Columbus and the surrounding area.

Filed Under: Foreclosure Hotline, Stop Foreclosure
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