ssociation, "The rate of foreclosure filings for prime fixed loans rose from 0.16% to 0.22%." What the numbers show is that these are precarious times and the declining economy is impacting Americans from all walks of life. This perfect storm of high gas prices, job cuts and lower real estate values are raising havoc on everyone's household' finances.
This is also when the so called "credit enhancement specialists" and "mortgage loan consultants" prey on folks by promising to help them "workout" loans with methods which anyone willing to do the research could accomplish with the help of a housing counselor for free. The one bright light in this mortgage mess is the amount of assistance that is available by both the federal and local governments.
Here's what you need to do in order to stave off foreclosure and keep your finances in order ...
1. Doing nothing is not an option.
The further behind you become, the harder it will be to reinstate your loan and the more likely that you will lose your house.
2. Pick up the phone and contact your lender.
If you are waiting to the last minute to pay your mortgage and are unable to pay your other obligations this is a good sign that you have a problem. Lenders do not want your house and they are under intense scrutiny by government and community organizations. They have options to help borrowers through difficult financial times.
3. Ask for help.
To find help in your local community contact housing advocate organizations Neighborworks at www.nw.org or call the HOPE Alliance hotline at 888-995-HOPE..
4. You have the right to fight.
Find your loan documents and read them so you know what your lender may do if you can't make your payments. Foreclosure laws vary by state and every state is different. Visit www.foreclosures.com for access to state by state information.
5. Practice foreclosure prevention. <br>
In other words be proactive.Find information about foreclosure prevention at the Department of Housing and Urban Development It's time to face reality folks. That five bedroom house with the granite counters and entertainment room may be your dream home but don't let it become your economic nightmare. You can always downsize to a smaller home or rent until the economy makes a comeback. This too shall pass
So the question is what are doing to make sure you don't become a victim of foreclosure?
Forclosure Crisis
People demonstrate outside a HOPE NOW home ownership preservation workshop at the University of Pennsylvania in Philadelphia, Tuesday, April 1, 2008. Demonstrators hoped to draw attention subprime mortgage crisis. (AP Photo/Matt Rourke)
AP
Joseph Barratt, 55, and others demonstrate outside a HOPE NOW home ownership preservation workshop at the University of Pennsylvania in Philadelphia, Tuesday, April 1, 2008. Demonstrators hoped to draw attention subprime mortgage crisis. (AP Photo/Matt Rourke)
AP
LAGUNA HILLS, CA - MARCH 28: A foreclosure sign stands in the yard of a house to be sold in an upcoming 11-day foreclosure auction of more than 1500 southern California homes March 28, 2008 in Laguna Hills, California. Cleaning up foreclosed properties is full-time work as home foreclosures are booming in the wake of the sub-prime loan crises, leading to abandoned and run-down properties that suppress neighboring home values and lower property tax revenues. Sub-prime loans make up 14 of total mortgages but account for about 60 of foreclosures. (Photo by David McNew/Getty Images)
Getty Images
LAGUNA HILLS, CA - MARCH 28: Sebastian Villalba mows grass and weeds to prepare a house to be sold in an upcoming 11-day foreclosure auction of more than 1500 southern California homes March 28, 2008 in Laguna Hills, California. Cleaning up foreclosed properties is full-time work as home foreclosures are booming in the wake of the sub-prime loan crises, leading to abandoned and run-down properties that suppress neighboring home values and lower property tax revenues. Sub-prime loans make up 14 of total mortgages but account for about 60 of foreclosures. (Photo by David McNew/Getty Images)
Getty Images
LAGUNA HILLS, CA - MARCH 28: An Orange County Sheriff eviction notice hangs on a house to be sold in an upcoming 11-day foreclosure auction of more than 1500 southern California homes March 28, 2008 in Laguna Hills, California. Cleaning up foreclosed properties is full-time work as home foreclosures are booming in the wake of the sub-prime loan crises, leading to abandoned and run-down properties that suppress neighboring home values and lower property tax revenues. Sub-prime loans make up 14 of total mortgages but account for about 60 of foreclosures. (Photo by David McNew/Getty Images)
Getty Images
LAGUNA HILLS, CA - MARCH 28: Sebastian Villalba mows grass and weeds to prepare a house to be sold in an upcoming 11-day foreclosure auction of more than 1500 southern California homes March 28, 2008 in Laguna Hills, California. Cleaning up foreclosed properties is full-time work as home foreclosures are booming in the wake of the sub-prime loan crises, leading to abandoned and run-down properties that suppress neighboring home values and lower property tax revenues. Sub-prime loans make up 14 of total mortgages but account for about 60 of foreclosures. (Photo by David McNew/Getty Images)
Getty Images
LAGUNA HILLS, CA - MARCH 28: Sebastian Villalba mows grass and weeds to prepare a house to be sold in an upcoming 11-day foreclosure auction of more than 1500 southern California homes March 28, 2008 in Laguna Hills, California. Cleaning up foreclosed properties is full-time work as home foreclosures are booming in the wake of the sub-prime loan crises, leading to abandoned and run-down properties that suppress neighboring home values and lower property tax revenues. Sub-prime loans make up 14 of total mortgages but account for about 60 of foreclosures. (Photo by David McNew/Getty Images)
Getty Images
A crowd of protesters hold up anti-war signs Friday March 28, 2008, in Freehold Township, N.J., as one of the presidential helicopters lands near a company where President Bush was visiting to spotlight the administration's efforts to save struggling homeowners from foreclosure. The president plans to stop by a mortgage counseling company that's part of the "Hope Now" alliance. (AP Photo/Mel Evans)
AP
Bill Suky, right, points out the arriving helicopter of President Bush Friday March 28, 2008, in Freehold Township, N.J., to wife, Dolores Suky, second right, Lucille Cerbini, left and Francine Jordan, second left, as they stand with a gathering of Bush supporters. President Bush was visiting New Jersey to spotlight efforts to save struggling homeowners from foreclosure. The president plans to stop by a mortgage counseling company that's part of the Hope Now alliance. (AP Photo/Mel Evans)
AP
Diane Beeny holds up an anti-war sign as she stands with a large crowd of protesters Friday March 28, 2008, in Freehold Township, N.J., near a company where President Bush was visiting to spotlight efforts to save struggling homeowners from foreclosure. The president plans to stop by a mortgage counseling company that's part of the Hope Now alliance. (AP Photo/Mel Evans)
AP
Comments: (5)
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By: say it aint so on 7/24/2008 5:10PM
please do not buy more than you can afford. there is the 28% federal tax, 10% tithes, 15% food, gas, living expenses which leaves 47% of your income for housing expenses and entertainment. most people knew they couldnt afford these homes before purchasing them but just wanted to gloat and floss being a homeowner. lets make wise choices with our finances in the future to avoid pitfalls and embarrasment like this.
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By: Willie on 8/03/2008 11:48PM
I would have to guess that some of the of the post about the rising forclosure rates, are by people whom have it all together. There are many people out there that had it together when they purchased their homes, but to unexpected, and unseen circumstances, find themselves in a situation now that they can't handle. There is a greed that is driving everything to unreachable boundaries, and for those that are caught up in it, there is not a lot that they can do at a point. The oil giants are one of those factors, American made goods are another. With all of America's manufacturing and textile companies moving out of the country to produce goods at a lower overhead cost, it is costing the American workers their jobs and pushing up the unemployed rate. A company that made only a 6% gain from last years record gain(profit) decreases it's workforce to accomodate what they call a loss, that is the greed that is bringing down the American economy. The federal government gives big business tax breaks to help them, but what about real tax breaks for the people who really need them... the American Tax Payer.
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By: sherry on 8/03/2008 6:25PM
People who are concerned about what people do at fifit must not bbe fifty. People at firty do what people do at 25, 35, 45 and 50.
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By: Denise on 8/03/2008 11:15PM
Not so worried about what has happen because thats almost taken care of with Bush signing a few days ago, but what are we going to do now? We have the help to prevent foreclosures, but what about new purchasing power for the small price range purchasers, $199900 and under, also the credit scores under 600. These deals are the ones that really help boost the economy. Will there be any programs for these purchasers with these qualifications for a mortgage, because the mortgage business must keep moving.
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By: Yulanda on 8/03/2008 11:39PM
I bought my home 10 years ago. Had no problem making my mortgage payments. I didn't take out any new loans, paid my bills on time. Fell behind a few times on my student loans because heating my home was becoming a challenge. The interests rates on my mortgage doubled in the past four years. It went from 6% to 11.9%. My mortgage payments are through the roof. You want to talk about greed there you have it. Banks and lenders should be ashamed. I have just as much right to own a home as anyone else. Why should I make some landlord rich, while I get nothing out of the deal? The bank are to blame for this mortgage crisis. The banks and only the banks.
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