Posts Tagged ‘Foreclosure Victims’

It is hard logical reality that in some way or the other foreclosures are affecting all of us. For instance let us first take the case of the elderly lady Jones who suddenly finds that she has to lose the house she has lived in for many years because of failure to meet enhanced mortgage dues for quite some months. Despite tears on her part and efforts on the part of rescue teams nothing could be done. She was evicted.

But where did she or many other Jones like her go? Nine times out of ten the only alternative is a public house or a federally subsidized rental unit. It is the ordinary citizen who pays for the subsidy and the upkeep of these shelters. It comes from the taxes – from the pockets of Tom, Dick, Mary and Jane.

Jones could leave nothing behind for her heirs despite years of hard work. Her heirs being her kith and kin are also low-income folks who further fall into the quagmire of poverty. This intensifies the polarization of wealth and divides society dangerously.

The sub-prime market with sharp rises in rates is the prime accused for this situation. It is not just the mortgage industry but the entire financial zone has become sore and infected. It is a scene out of a horror movie. There is no ready quick surgical solution for the gangrene that has set in. It does not mean however that one should sit back. Immediately clear and effective legal steps must be taken to stop once and for all such infamous mortgage deals. But it should not victimize the mortgage industry as a whole and throw away the baby with the bathtub in its zeal. Well thought out legal and official action is the call of the hour.

The next step is making the public financially literate so as to prevent them ahead from taking false steps. Here three questions arise. Who will advice? Is it compulsory? Who will pay for it?

Whatever the answer, the ball that has been set rolling regarding internal policing within the mortgage world and interacting with the borrowers must not be allowed to stop but rather it should be kicked to pick up more speed. Other venues of approach and suggestions should be tapped. The welfare of Jones and our interests are identical.

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Last Friday President Bush took a positive step in sending a cabinet colleague to Chicago. This was part of a programme to lessen the number of people being made homeless because of the foreclosures. Last year in Chicago alone more than 18,000 house owners were adversely affected. From a report released by CBS 2’s it is learnt that $27 million is being granted to community groups all around the country to help besieged householders.

In 2002 Regina Garrett set up her home in the first house she ever owned. But within two years she was on the verge of losing it. She lost her job and fell behind in one monthly mortgage payment. To make matters worse her stars were against for because it was at this critical juncture that interest rates shot up from $900 to $1,200. Foreclosure hung over her head. Desperate Regina began to lose her cool and sank into a traumatic state of confusion. By chance a well wisher asked her to knock on the doors of Neighborhood Housing Services of Chicago. She was now advised and able to negotiate new terms with the lender and save her roof. She availed of a loan from the agency to rehabilitate her house. Words fail Regina when she wants to express her thanks to them for standing beside her in her hour of need.

There are many Reginas in the state who are now benefiting from the programme. U.S Treasurer Henry Paulson opined that the primary message he has for the victims is that at the first sign of stumbling immediately contact counselors. The government wants more success stories like that of Regina to make the rounds. There are about 60 counseling agencies like Neighborhood Housing across the country with whom the $27million will be distributed for the express purpose of helping the unfortunate borrowers of housing loans.

Jim Wheaton, a spokesperson of Neighborhood Housing Services of Chicago said that using discretionary powers, in specific cases a small loan would be advanced for reinstating mortgages. These would be for those who had lost jobs or undergone a tragedy like illness or death in the family. Anybody threatened by foreclosure can apply for a credit of $10,000. The uniqueness of this loan is that one need not have to repay until the property has been transferred, refinanced or sold.

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Patrician Jennings is in a fix. The sword of foreclosure is hanging over her head – about to fall. Unemployed she is late by three months on her mortgage installments for her house in Pontiac, Michigan. Desperate she hung a signboard “For Sale by Owner”. Then did the next wise thing – attended a seminar organized by Federal Reserve Bank of Chicago at Detroit.

At the meeting the Resource Development Coordinator for Oakland Livingston Human Service Agency advised homeowners that in a situation like Jennings the first thing is to chalk out an emergency budget cutting out on anything but the bare essentials. Next is to augment income. The main priority and target should be the determination that the home would not be sacrificed.

For those with a student loan there is the facility of applying for a deferment citing reasons of economic hardship and unemployment. Payments then might be suspended for a limited time giving the owner breathing time. For particulars click on salliemae.com.. The quicker one act the easier it will be stall foreclosure.

The next alternative will be to change the mortgage lender without delay. Never loose your cool. Be calm and pleasant while contacting personnel in the loss-mitigation department and not the collection section.

Seek an appointment with a housing counselor who has been approved by the US department of Housing and Urban Development. You can get a brochure that explains ways out of the foreclosure mess. Avoid foreclosure scams. Never give your signature to a service that charges upfront for fixing the damage.

In the case of the owner negotiating the sale of the house it is advisable to check out on the prospective buyer. Wolves in grandmother’s clothes come prowling around to make a fast buck. Never allow yourself to be rushed by smart talk. The usual ploy is for the crook to offer collection of rent for sometime and not take mortgage payments. Later the lender has to foreclose. The point to bear in mind is that by signing over the deed to another does not necessarily absolve you from the obligation of repaying the loan.

For those above 62 who have equity on their property but are facing problems with meeting up their bills the option is to find out about reversing mortgages. The site also gives invaluable advice about avoiding predatory lending traps.

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Not a soul can disagree that experiencing foreclosure ranks on the top of the list for nerve-racking life situations! This article talks about the benefits of maintaining a positive outlook, in spitefulness of emotionally explosive situations, and how it can contribute to a much supplementary positive conclusion…..

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