March 31, 2011
By
Dick Baker
Are you facing foreclosure, or know someone who is?
Never before have so many homeowners faced the specter of foreclosure, and thanks in part to media hype, there are many misunderstandings about the options and consequences they face. It is important that those who are behind in their payments understand that their lender is not Snidely Whiplash, lurking in the wings hoping to take your home away. Foreclosed homes become a burden for them, so they would prefer to work with you to find a better solution for everyone.
Snidely Whiplash
Freddie Mac has produced articles and You Tube videos in an effort to dispel several common myths associated with foreclosure. The link below offers great basic advice on avoiding foreclosure. Help is available to those facing the loss of their home, however only a small percentage of them reach out to these resources.
Foreclosures can be a nightmare for families, but they are harmful to lenders and even the neighborhoods in which they are located. So let’s spread the word, there may be some better solutions suggested here: http://www.freddiemac.com/avoidforeclosure/
October 14, 2010
By
Dick Baker
It’s hard to open a newspaper lately without seeing something about foreclosures. Nevertheless it’s hard to make sense of the situation and what it means to the Toledo real estate market.
In September and October, several lenders halted foreclosure actions in dozens of states due to questions about whether they were being done in compliance with state laws. According to the National Association of Realtors, we have no way of knowing at this time how many of the foreclosures have been taken back inappropriately. While this mess should ultimately be sorted out, quite frankly this situation is creating even more problems in an already struggling marketplace and no doubt stalling a real estate recovery. Many pending transactions have been put on hold or even cancelled, while other properties currently for sale may be nearly impossible to sell due to title questions.
If there is a silver lining to the current mess, it may be that banks should have more incentive to modify loans for those currently struggling and facing foreclosures, or they may expedite more short sales in an effort to reduce inventory.
In this writer’s opinion, the foreclosure situation is becoming an epidemic, but current actions by Fannie Mea and Freddie Mac may not be the right elixir.
September 28, 2010
By
Ann Newman
In an effort to help underwater homeowners who owe more on their mortgage than the value of their property the department of HUD is adjusting their refinance program. In short if a borrower is current on their mortgage and does not currently have an FHA mortgage, they can ask that their current lender write off at least 10% of the unpaid balance to qualify for a new FHA mortgage.
FHA Commissioner David H Stevens stated:
“We’re throwing a life line out to those families who are current on their mortgage and are experiencing financial hardships because property values in their community have declined. This is another tool to help overcome the negative equity problem facing many responsible homeowners who are looking to refinance into a safer, more secure mortgage product.”
To facilitate the program, the US Department of Treasury will be providing incentives to those who have an existing second lien who agree to reduce or eliminate their liens.
For more information about the program, visit here.
