Protecting Your Home From Foreclosure

Date: 8-30-07

What Happened to the American Dream?

The sub-prime lending meltdown has perpetuated an unfortunate state that has resulted in much of the current trends in the mortgage industry.  Homeowners that were once experiencing the high of the “American Dream” are now seeing their concept of home slipping through their fingers.  Foreclosures are becoming a widespread, and all too common, factor for many; and prospects for the future seem grim to those who are finding themselves in precarious positions with regard to affording their mortgage payments.  Foreclosure rates are on the rise and it seems as if there is no end in sight for these unfortunate occurrences.

According to research conducted by Realty Trac for 2007 foreclosure trends, “Nationally, the number of foreclosure filings has risen from 323,101 in the first quarter of 2006 to 345,554 in the fourth quarter of 2006, to a total of 437,498 filings reported in the first quarter of 2007.”  Furthermore, Realty Trac’s findings indicate that, “…87% of all foreclosures occur on single family residents, town homes and condominiums.”

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How Can I Protect Against Foreclosure?

Does this have to be the case for everyone?  Not necessarily.  A primary factor that contributes to the initiation of the process of a foreclosure is a failure to contact the lender when troubles begin.  There are options available to help ease the burden when finances are tight due to various reasons; often it is circumstances that are not always in the control of the homeowner, ranging from job loss to health complications preventing an individual from working.

Here are some options that are available to you if you feel that foreclosure is a realistic prospect for you or a family member.  Or perhaps you are already to that point and are in need of resources to help you with your current situation.

The first step is to contact your lender immediately if you are having troubles making your mortgage payments.  Ask to speak with someone who has the authority to work out some type of an arrangement.  Be sure to ask if your loan can be modified, for example, by adding an additional year to the term of the loan.  Also, ask if you qualify for forbearance – the temporary suspension or reduction of payments.

The next logical step in finding a solution is to seek out a counseling service/agency that specializes in aiding homeowners on the verge of foreclosure.

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Resources for Homeowners

Below is a list of organizations that assist homeowners or provide information on the foreclosure process and advice on avoiding foreclosure of property.

ACORN Housing
www.acornhousing.org

This non-profit has a program in place known as the “Home Equity Loss Prevention Program” (HELP)

Housing and Urban Development (HUD)
800-569-4287
www.hud.gov

An organization of the U.S. government that offers a variety of resources that will help guide you through your time of need.  The site provides links to approved Housing Counseling Agencies and abundant amounts of information about the foreclosure process, including their tips to avoiding foreclosure.  The site also provides you with the ability to search by state for agencies available in your area.

National Foundation for Credit Counseling
866-557-2227
www.nfcc.org

The NFCC provides counseling and education throughout the country to help homeowners avoid foreclosure. This organization has a network of nonprofit, community-based agencies with almost 1,000 offices. Consumers in need of immediate assistance can call the toll-free hotline listed above.

Neighborhood Assistance Corporation of America (NACA)
www.naca.com

A non-profit community advocacy and homeownership organization that has established their “Home Save Program” to assist homeowners.

NeighborWorks America
888-995-HOPE
www.nw.org/

This particular organization has instituted a program known as the Center for Foreclosure Solutions and was created to preserve home ownership.

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This site is not a broker and does not collect or solicit mortgage applications. Content is for informational or comparison purposes only. Services are not available in New York. Products and services may not be available in all other states.