Looming Foreclosure Crisis:Thousands threatened

Posted in Foreclosure, May 20th, 2007 |

South Florida Sun-Sentinel 20^th May 2007

Paul Owers reports that South Florida citizens are sitting on the edge of an erupting foreclosure volcano. House owners in Borward and Palm Beach are getting strong reminders from lenders, threatening to seize their properties despite the fact they have been regularly paying their mortgage dues.

This melting down of housing is causing analysts to predict that there will be further escalation of in foreclosures continuing up to the next year that will lead to depreciation in property values. Already since last summer there has been a decline. The situation is turning ugly.

For the last few years Jayne King of Delray Beach had been battling cancer with other complications. Her husband was out of work following two consecutive car accidents. Last year the Kings fell back on monthly mortgage payments trying to adjust income with hospital bills. They filed bankruptcy suit with a promise to repay debts as soon as possible. A lawyer smoothly drew a plan with a lender, which apparently enabled them to keep their home. The Kings are just one among many caught up in this racket.

Felicia Eusebio-Mejia, a registered busy nurse with two jobs could afford a house in Miami Gardens last year. But she lost one job and fell behind in mortgage payments. Home Financing Center gave her temporary relief and time to get back on the rails.

Right through the region unexpected medical expenses, rising house owner’s insurance dues, property taxes and the like have caused lower and middle income group to be on the verge of being dispossessed of their homes. Experts blame unethical home lenders for trying to take over property whose prices had shot up during the first five years of this century.

Lenders have got together to work out plans. It is crucial to ask for help without delay says the head of Consumer Credit Counseling Service in West Palm Beach. By waiting one loses bargaining power. More than twice the numbers of people are coming to her since last year. If contacted within two months they might refinance and negotiate with repayment plans. In the next alternative lenders agree to buy the property at a rate less than its value. The last resort is to deed the houses back to the lenders and avoid the indignity of foreclosure. Lenders are not too keen on time-consuming expensive foreclosure proceedings.

Via