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?

Foreclosures happen when a borrower defaults on the loan. By filing a “notice of default”, on the property with the local court system where the property is located. Once the courts make a ruling in favor of the lender the property, generally put up for sale at a public auction. However the is a timeline between the filing of the legal paperwork from the lender and the auction sale of the property, this is where the local laws vary. Depending on the state and circumstances, this timeline is from three to twelve months long.

Lenders or the courts will publish an auction ad approximately thirty days prior to the auction. However, before publishing the ad the homeowner is served with a notice about the foreclosure and pending auction sale. As soon as the property sells, the title/deed is given the new owner of the property.

If are facing financial hardship, in default on your mortgage payments you still may have a chance to avoid foreclosure, your chances are better if you have not yet receive a notice of foreclosure. Make sure that you do not ignore the phone calls or letters sent by the mortgage company, talk to them, they are not that bad to deal with. Well, maybe they are but ignoring them will not help your situation with them. Generally, they would rather try to work something out then to pursue the process and expense of a foreclosure.

Hiring someone that fully understands and can advise you on the local foreclosure law may be a wise decision on your behalf. They can be the mediator between you and the lender, and protect your rights as a homeowner; many times, they can assist in preventing a foreclosure as well.

Many sites available offer general information regarding foreclosure law, while most provide general information, make sure that you get proper legal advice from an attorney. Remember banks really would rather not foreclosure on your property, however if given no other option the will. The best approach is to educate yourself, ask question, do some research and most importantly do not just roll over and give up, fight for your home.