Archive for the ‘foreclosures’ Category
HUD to Lenders: Cut Ike Victims Some Slack
Friday, September 19th, 2008Troubled borrowers who were ravaged by Hurricane Ike will be glad to know that they need not worry about their mortgage problems in the mean time. Instead of thinking of ways to stop foreclosure, these homeowners can focus on recovering from the losses they incurred when the said hurricane passed through their cities.
For the Department of Housing and Urban Development Secretary Steve Preston, distressed homeowners living along the coast of Texas deserve to be given some break from the collection efforts of their lenders. In fact, HUD is urging private lenders to consider the situations of these distressed homeowners.
As for the federally-insured mortgages, the HUD has already issued a moratorium against foreclosure effective for 90 days.
In cases like this, troubled borrowers should take advantage of the extra time given to them. True, they need to pick up the pieces after suffering from Ike but they should also use this time to find a long-term solution to their mortgage woes.
Negotiating with lenders is usually the first option explored to address foreclosure fears. A loan modification agreement or repayment plan can be drafted if the homeowners are able to prove that they can still afford the mortgage.
If this does not work out, homeowners should probably consider selling the property. There are actually a lot of investors and homebuyers who prefer pre-foreclosures over foreclosures at auctions and bank foreclosed homes.
As a last resort, homeowners might want to consider a deed in lieu of foreclosure, a short sale or even a bankruptcy in order to avoid foreclosure.
For homeowners who are confused about what to do, there are foreclosure counselors who will offer their services for free. These foreclosure counselors can even act as mediators between the troubled homeowner and mortgage lender or servicer.
Nationwide, numerous housing advocacy groups have been organizing foreclosure prevention workshops and seminars in order to help these unfortunate homeowners.
Foreclosures in Michigan to See Respite
Monday, September 1st, 2008Senator Carl Levin of Michigan said that many people across the nation have gone through the anxiety that being involved in a foreclosed home would produce. He said that the increase in numbers of foreclosures was having an adverse effect on the values of homes, involved in foreclosure or not.
He also said that with Michigan having the fifth highest rate of foreclosures in the country in June, 2008, the State has been affected very severely.
He does hope that the recently passed Housing and Economic Recovery Act of 2008 will turn the tables and undo the damage that the mortgage crisis has caused.
This bill, according to him, will offer solutions to a lot of the current problems and will also offer safeguards against similar situations arising in the future.
He said that the bill has authorized the Federal Housing Administration to provide $300 billion in insuring mortgages. This move could have a positive effect on around 400,000 home owners across the nation by helping them to convert their existing ARM loans to fixed rate mortgages with a 30 years time period. This move, he said, would help households avoid foreclosure and keep neighborhoods together.
The bill is to also provide funds to local communities suffering from a large number of foreclosures. This money is to be used to rehabilitate badly affected neighborhoods.
Talking about how the bill would affect Michigan, he said that the State is to receive $170 million in order to help local neighborhoods. He said that these funds could restore close to 6,000 homes and protect local communities from the values of their homes going down.
He also discussed how the provision of first time home buyers receiving a loan of up to $7,500 as tax credits, would have a positive effect. Not only will it give people wanting to buy their first home a chance, it would also end up reducing the influx of unsold homes, he said.
He also said that it was clear that the current crisis was not just about values of homes going down or the high mortgage costs, but also about the people who stood to loose homes where lives were spent and memories were made.
Growth of crisis in the UK housing market
Monday, June 2nd, 2008The UK has been hit by a similar housing crisis that it is affecting the US. Specialists have predicted that if the crisis is not stopped at the beginning it could be far worse than the US foreclosure crisis, as the British economy is more reliable on the real estate industry.
Indian Real Estate Benefiting From US Crisis
Friday, May 30th, 2008The whole crisis in the US is giving hope to India. America is the number one outsourcer of India´s IT/ITeS business, and recent reports are showing that due to the cheap labour in India and the economy crisis that has hit the US by the high oil prices and the foreclosures recession, American companies are now moving whole sectors and operations to India.
Lobbying affecting resolution of real estate crisis.
Thursday, May 29th, 2008America is facing one of the biggest real estate foreclosure crisis ever and some have even compared the crisis to the great recession. The auto industry, builders, homeowners, lenders and students got hit by the crisis, and yet no resolution seems to be taken by the government. It looks as if the government is waiting for something to act, and why is that? Elections of course!!
Auto sales affected by housing crisis and high oil prices.
Wednesday, May 28th, 2008The foreclosure crisis has affected thousands of homeowners, lenders, builders, as well as students who cannot qualify for student loans due to the high standards posed by mortgage companies. It seems that now its time for the auto industry to be affected by the real estate foreclosure crisis. With banks and auto lenders tightening their loans and worried of getting caught by the recession, hundreds of American consumers are not being able to get the desired loans.
Health Risk By Abandoned Homes Rise With Crisis
Tuesday, May 27th, 2008As a result of the current real estate foreclosure crisis many lenders have repossessed more homes that they could afford, and as a result many homes are abandoned and vacant. The average rate of vacancy in the US is now at 3 percent and the problem is not only affecting lenders but are affecting the health of thousands of neighborhoods across the country. Recent reports show that many vacant homes are presenting health risks including many abandoned green-pool that are a handy nest for mosquitoes.
The future of home financing
Monday, May 26th, 2008The current real estate crisis in America is far from over and it is affecting thousands of lenders, neighborhoods, the building industry and especially home owners. But the effects of the crisis are even worse the present problems. Homeowners that are going through foreclosure today will suffer even more in the future by the bad credit, and most of them will have to wait five years to be able to get a new mortgage. The current foreclosure crisis is becoming the future credit crisis and it will have innumerous consequences to many sectors of our economy in a near future.
4 arrested in San Diego Scam
Friday, May 23rd, 2008San Diego police arrested four people related to a gigantic foreclosed home scam that tricked 400 home owners into paying rents and fees to a San Diego based group. The scam was based on a false foreclosure rescue plan where home owners would pay a fee to the company with the promise of help on getting their homes back, but the company did nothing to prevent the foreclosures.
Foreclosure Crisis Causing Domestic Violence
Thursday, May 22nd, 2008The current mortgage crisis has been already compared to the great depression, and it is affecting thousands of lenders, homeowners, the building industry and even giants of the home industry such as Lowe’s and Home Depot. But recent reports had shown that the foreclosure crisis is not only causing people to lose their homes, but also their marriages and their families. The devastation trend starts when the owners cannot afford to their mortgages and starts taking their frustrations on each other.
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