Agencies Offering Free Help For Foreclosure Victims

Posted in Foreclosure, March 24th, 2008 |

In Charlotte County foreclosures are increasing every month and the people are desperate for help. In 2007 there were 196 foreclosures – a rise of 68% from 2006 and 238% from 2004. The crisis is being fuelled by job losses, dwindling wages and family problems like divorce and illness. Localities are being affected in a chain reaction. When one house forecloses the value of adjacent property goes down while crime rates increase. Thus it is to the interest of the individual as well as that of the entire community to seek help against foreclosures.

In Charlotte County help is being given by The Housing Corporation that is a non-profit body. At the moment it is assisting 200 clients. Christine Dunbar, the chief operations officer of the concern strongly suggests that the victims should contact them as soon as they begin to feel that they cannot carry on with the loan and not when they have actually started to fall behind. There is a world of difference between a potential defaulter and an actual defaulter. The first thing to do is to contact the lender directly. Sometime the banks have in-house programmes to help the people. Usually an appointment is given and a bunch of papers sent with information so that the borrower is in a position to know about the problem to be discussed and its various nuances, well ahead. The clients will have to provide details of income, tax refunds, tax bills, bank statements as well as mortgage papers.

The first thing is advice about budgeting – balancing income with expenditure. Extra funds located will have be directed towards mortgage payments. A review of income and assets will have to be made. This will bring to the surface the root cause of default – whether mismanagement of finances or more serious actual inconveniences. Having gauged the situation the counselors will then intervene on behalf of the clients and talk with the lenders. Different options will be given to the client. To say the least it will take about a month for things to get started. Identifying and contacting lenders is a big hurdle. It is for this reason that outside professional help is required.

Dunbar warned that one must be prepared with the reality that not all the foreclosures can be stopped. A small fee may be required for credit counseling but nothing is required for foreclosure matters.