What About the Foreclosure Rescue Plan

If you watch any of the network news channels, you may actually believe that the economy is turning around and getting better, but have you talked to your friends and neighbors? While the news networks are reporting increases in new mortgages and sales figures, what they are not telling us is that they are bogus numbers! Lets see… the Obama Foreclosure Plan takes effect, millions of homeowners, upside down in their home loans apply for refinance, and since the rescue plan involves getting a new mortgage… NOW you can see why the mortgage rate goes up! They aren’t new home sales, or existing home sales, they are refi’s!

When Will it Hit Bottom?

This really depends on which news network you listen to, but many are claiming it already has! Not! According to RealtyTrac CEO James Saccacio, the drop in home values may be slowing a bit, but its likely that banks and lender seizures will increase in the coming months! “Lenders and servicers are beginning foreclosure proceedings on delinquent loans that had been delayed by legislative and industry moratoria,” Saccacio said.

Just to add to this, the unemployment rate in the US is showing no signs of slowing… no jobs = more foreclosures!

Post from: Obama's ForeClosure Plan Website

So Much for Progress – Foreclosure Rate Reaches Record High!

Foreclosure Crisis Reality

The truth and reality is… as soon as Obama took office, many lenders placed a voluntary moratorium on foreclosures to give the new administration time to work out a plan that would help homeowners. Well, the foreclosure moratorium ended and as expected, the numbers are rising again!

From the RealtyTrac report:

March Activity Up 17 Percent From February, 46 Percent From March 2008

To put this into perspective, We the People, are being fed only bits and pieces of news from all sources, to try and paint a rosy good picture on a serious issue that’s not going away with a simple administration change, and tossing billions of dollars at it!

Bad Foreclosure News On the Horizon

Whether we all want to believe it or not, the ONLY way to stem this foreclosure crisis is by building wealth at the community level! Dumping billions of dollars into the banking and insurance industry was only meant to keep the investors (aka China, World Bank) happy during the time it took to reverse the foreclosure trends.

I am not an expert in the banking industry by any means… but I predict we are about to hear some very troubling news about home foreclosure rates!

What do you think?

Post from: Obama's ForeClosure Plan Website

Foreclosure Crisis Ready to Explode Again

Talk to your bank as soon as you know that you are late on a payment and ask for a workout agreement. The sooner you start an open dialog with your bank the better. I know that it can feel humiliating to lay out your financial story to some stranger at a bank. But the only way that you are going to get them to help prevent foreclosure is by being honest about where you are at financially. Many banks are willing to work with you to work out some sort of arrangement so that you can keep your home. This may come in the form of a forbearance (temporarily stopping the mortgage payments), a loan modification or some other arrangement that the bank can do to help you with your current financial situation.

What if you Owe More than your Home is Worth?

If you owe more money on your house than what it is currently worth, talk to your bank about the possibility of a short sale. If you cannot or do not want to stay in your home, a short sale may be the perfect option to help prevent foreclosure. Different banks will have different requirements so be sure to fully understand what your bank’s policies are and what paperwork you will need to provide them in order to get them to agree to a short sale.

Do not let anyone tell you that a short sale is an easy way to get out of your home. It is not. There is a lot that you need to provide to the bank, including a willing buyer, and even then they may or may not agree to a short sale. This solution is a gamble and not a sure-fire way to get out of your home. And most banks will take their own sweet time letting you know whether or not they will agree to your short sale or not.

Evaluate your Own Budget to Prevent Future Crisis

Take a good hard look at your finances and see where you can cut back. There is a reason why you are in the financial predicament that you are in. It could be unavoidable life circumstances or it could be avoidable life choices. How much money are you spending on avoidable luxuries like eating out, clothing, massages, gym memberships? You can help prevent foreclosure by simply cutting back on unnecessary luxury items. You will find that it is amazing what you can live without if you really need to. Before you make a purchase, ask yourself if you would rather have that item or have your home to live in. For me, asking myself that question shed a whole new light on every single purchase that I made.

Post from: Obama's ForeClosure Plan Website

Solutions to Help Prevent Foreclosure