Augusta Foreclosure

On March 8, 2008, Glenn Hills High School in Augusta won the Georgia state basketball championship. It was exactly what the community needed. Like so many areas across the nation, the community has been bogged down with the troubles of the current foreclosure crisis. While the emotional victory (the first in the school's 40 year history) may have been temporarily uplifting, the stain of foreclosure is still very evident in the fabric of the Augusta community.
According to Realtytrac, in 2007, the metro Augusta area had 1,960 properties with foreclosure filings, which shows a rise of 4.53 percent from 2006. According to the Realtytrac rankings of the 100 largest metro areas, if the Augusta-Aiken area were large enough, it's foreclosure rate of .891 percent would be 57th in the nation.
The rising amount of foreclosures have also significantly impacted the housing market. In January 2007, the average length of time to sell a home was 93 days. In January of 2008, the number was up to 97.
According to the Greater Augusta Association of Realtors, the average sale price for homes in the Augusta area was 2.7 percent lower in January than in the same month of 2007. The average sales price for all homes in the Richmond, Columbia, and parts of Aiken, Lincoln, Burke, and McDuffie counties was $135,756 in January of 2007, compared with $132,109 in January of 2008. The list-to-sell ratio (how close the seller came to getting the asking price) was 98 percent in 2007 and 97 percent in 2008.
Also, in January of 2007, homes in the $350,000 - $400,000 price range were on the market the longest, with an average 288 days. In January of 2007, homes in the $30,000 - $40,000 price range were on the market the logest, with an average of 158 days.
Carmen Chubb, Assistant Commissioner for Housing for the Georgia Department of Community Affairs, says, "Nobody knows for sure if we're really at the point of where we've peaked out with the foreclosures. The most reasonable estimate that I've read indicates that we'll continue with this trend through 2009."
Sadly Augusta, is just one example in long line of desperate communities that have been ravaged by the foreclosure crisis. All across our nation, foreclosure are at an all-time high and homeowners are becoming fragments of an already destroyed American dream.
Assistance may be available to some homeowners. Studies show that many foreclosures could be stopped
homeowners would negotiate with their respective mortgage companies. Sadly, dealing with mortgage companies
is more complicated then just giving them a call and asking for assistance. They require an a lot of forms and the
correct paperwork to substantiate your claim before getting any real assistance. This can be time consuming and
frustrating for a once in a life time event.
There is, however, another option. Homeowners may try to inquire of reputable third-party assistance firms to help them negotiate with their mortgage companies. For example, the Lewis Mortgage Foreclosure Assistance Foundation has assisted homeowners with the negotiation process and can act as a go between for the homeowner. Their team of educated and trained professionals has assisted tens of thousands of homeowners to retain their homes. Organizations like Lewis may be the only hope as the darkest days of the foreclosure crisis lie ahead.
For more information, contact the Lewis Mortgage Foreclosure Assistance Foundation at 866-645-8551

Foreclosure Help

Homeowners in the Dark

America has a problem. Plainly put, America has a foreclosure problem. Staggering foreclosure rates have severely affected the American economy. Across the country, millions of homeowners have lost their homes due to this devastating crisis. Families are broken up, lives have been altered, and homes are left deserted. America has a big problem.

While the blame for the crisis may be a subject of much debate and conjecture, the important issue that all Americans must focus on is the solution to the problem. In the opinion of this writer, the most vital issue regarding the foreclosure crisis is the education of the homeowner of what they should do. For this once in a life time event, most homeowners facing foreclosure have little knowledge about foreclosure. Homeowner’s have little time to educate homeowners about the sometimes complicated foreclosure process (www.lewisstates.com).

Many homeowners have no idea that contacting the people at the mortgage company that they can actually obtain help. Also, they are left in the dark about possible repayment options and timetables. The saddest truth about foreclosure is that many homeowners could have saved their homes from the process had they been more prepared.

The following is a quick overview that homeowners can use to get helpful information about foreclosure proceedings.

TIMETABLE

30 days – The homeowner is not considered late on the mortgage until they are 30 days past due. At this point the mortgage company will attempt collection calls to cure the deficiency.
60 days –The 60 day mark is when a homeowner is considered to “default” on the mortgage. The mortgage company may offer some more random collection calls and possibly send a letter or two. Remember, they are not obligated to do anything in most states.
90 day – The 90 day mark is the beginning of a very serious time. The Mortgage company will normally send the homeowner a letter that demands that the full amount due be paid or the foreclosure process will begin. Often, the foreclosure process and notification are a simultaneous event, thus the homeowner could be in foreclosure but not know it. Collection efforts by the mortgage company will continue even while the foreclosure process progresses.
Over 90 days – Once the loan is in foreclosure, the mortgage company can schedule an auction date at a time as required by law (www.lewisstates.com). The homeowner has some time to redeem or vacate the premises after the home is auctioned off to the highest bidder, the alternative is being escorted off the premises by local law enforcement.

OPTIONS

Refinance – Unfortunately, the vast majority of homeowners facing foreclosure are not able to refinance their homes. The pending foreclosure has obviously negatively affected the credit of the homeowner that will scare away any mortgage companies interested in refinancing the loan.
File Bankruptcy – In the opinion of a study conducted in Georgia, Bankruptcy should only be considered as the last option possible. Bankruptcy will stays on the homeowners credit for at least seven years and sometimes longer. One study indicated that 70% of homeowners who file bankruptcy to save their homes failed during the first 12 months.
Negotiate –It is possible to negotiate with your mortgage company. Sadly, due to the current volumn of foreclosures, this option has become almost impossible to hurdle without professional assistance or advice. In order for a homeowner to negotiate with the mortgage company, the homeowner must have a working knowledge of foreclosure and real estate proceedings and be able to provide the mortgage company a completed 20 to 40 page workout package containing all the elements necessary for the mortgage company to consider their unique situation.
Get Help – Many times this is the only option that is open to the homeowner. Homeowners must beware of foreclosure predators but be willing to search for help for their problems. Homeowners should not hire anyone who guarantees to specific result. Homeowners should ensure that the company is a member of the Better Business Bureau and Dun and Bradstreet. It is helpful if the company has a Reliability Partnership with the Better Business Bureau and has not got any unresolved complaints against them.

Knowing what the mortgage company is looking for and then how to communicate with them is only part of the battle. Once the communicate process has opened up then a homeowner has to know what to say when someone says “no” to their plan. If you are experiencing problems such as these, perhaps the best solution is to hire some advice or counseling on how to proceed.

About the Author: Jacob Cukjati is a knowledgeable foreclosure professional with Lewis Mortgage Foreclosure Assistance Foundation. He is dedicated to providing a valuable resource for homeowners facing foreclosure. You may contact him at his office (251) 923-0235 or e-mail him at jacobcarro@gmail.com

About the Company: Lewis Mortgage Foreclosure Assistance Foundation is non-profit organization based in Lillian, Alabama. They have a team of foreclosure professionals that are dedicated to helping homeowners save their homes. You may contact them at 866-645-8551.

The Crippling Foreclosure Crisis

A survey of elected local officials shows that the recent increase in foreclosures has significantly increased vacant properties, homelessness, and crime while decreased city revenue.
The National League of Cities surveyed 211 officials through online and e-mail questionnaires, and 67% of those surveyed reported an increase in foreclosure in their respective cities. 33% reported an increase in vacant properties and decrease of local revenue.
Cynthia McCollum, President of the National League of Cities and Councilwoman of Madison, Alabama said, "There's a reduction in revenues at the same time that more services are needed. Because of foreclosures, people are stealing, crime is on the rise and we don't have more money for cops on the street."
20% of city officials polled reported an increse in homelessness.
When the National League of Cities meets with Congress, the foreclosure crisis will be the main topic of discussion.
James Mitchell, a Charlotte Councilman and head of the National Black Caucus of Local Officials, said, "The American dream for individuals has now become the nightmare for cities."
He reports that there has been an increase in police calls because abandoned properties are targets for vandalism.
Mitchell also claimes that in Peachtree Hills, a Charlotte suberb, 115 of 123 homes are in foreclosure.
He says, "The 12 residents left there can't sell their homes and now their property values have decreased. It's starting to be a symbol of what we don't want to happen to Charlotte."
Many of the homes where sold to African-Americans enticed by zero down mortgages and low priced housing. The survey shows that people of color, single parents, and senior citizens are being disproportiantely affected by the foreclosure crisis.
Even cities that have been spared from the worst of the crisis are experiencing serious ramifications.
The heart of California's Inland Empire, Riverside, ranks 4th nationally in foreclosures. The area attracted people from the costlier coastal area, but the housing boom had little affect on Riverside. However, the communities to the East were more severley affected.
Riverside Mayor Ronald Loveridge says, "It's having a ripple effect on our budget and city finances. Housing industry is not simply building homes. There's less money being spent for new cars. That's had a powerful effect on the economy of our region."
Since the 1978 passage of Proposition 13, which caps real estate taxes, California cities rely heavily on sales tax revenues. Riverside is facing a $12 million defecit this fiscal year.
Loveridge says, "We handle that essentially by not filling positions."
Riverside is adjusting the payment schedule of development fees to encourage construction. Also, it passed an ordinance requiring the upkeep of homes in foreclosure.
The Department of Housing and Urban Development is working with Charlotte on a program that allows teachers, firefighters, and police officers to buy foreclosed homes at 50% of the listed price.

One Year Moratorium

President George W. Bush recently announced a 30 day moratorium on foreclosures. Sen. Hillary Clinton has expressed her approval for a 90 day moratorium.
But, recently, two state legislators have been pushing for a 1 year moratorium for the state of New York.
Assemblyman James F. Brennan (Brooklyn, Democrat) and State Senator Frank Padavan (Queens, Republican) have introduced a bill that would call for a statewide year-long halt on foreclosure proceedings.
The proposal gives homeowners the ability to stay in their homes and negotiate with their lenders to ultimately stop the foreclosure action.
This bill has been one of the more extreme proposals dedicated to stopping the foreclosure crisis and may remind many of the moratoriums instituted during the Great Depression of the 1930's.
It was introduced in December and has been gaining momentum steadily. Mr. Brennan claims that it has the support of over 60 assmbly members. A community organization group with more than 60,000 members, New York Acorn, has supported the bill as well.
The moratorium would be the longest such action since Gov. Herbert H. Lehmen instituted a one year moratorium in 1933; the moratorium was renewed every year until 1949.
Bertha Lewis, Executive Director of New York Acorn, says, "Some people say, 'Well, that's too crazy,' we say, 'Look, either we are in a crisis or we're not.' We have to do something in New York State. This crisis is real, just like it was real in 1933 during the Depression."
Mr. Brennan claims that the idea for the moratorium came from a 1934 Supreme Court case that he studied in Brooklyn Law School. The case, Home Building and Loan Association vs. Blaisdell, instituted a Minnesota moratorium.
Mr. Brennan says, "There's nothing wrong with giving people some time to see if better arrangements can be worked out."
New York's Superintendant of Banks, Richard H. Neiman has claimed he would review the proposal.
The Mortage Bankers Association has claimed that the moratorium is sometimes useful but not a long term solution.
After a civil rights group pushed for a national 6 month moratorium, John M. Robbins, Chairman of the Mortgage Bankers Association , said, "Each loan is an individual transaction and situation, one which needs to be addressed individually between the lender and the borrower."
Also, the bill could possibly reduce the lenders power over defaulted homeowners becuase it is thought that lenders will shy away from extending loans to prospective homebuyers. The bill has received the support of State Senators, James S. Alesi of Rochester, Martin J. Golden of Brooklyn, and William J. Larkin Jr. of Newburgh in Hudson Valley.
Mr. Padavan claims that the bill is a "common-sense solution" to national crisis. He says, "This is a freight train coming down the tracks and we're just trying to slow it down so people can deal with the underlying problem."
The bill is one of many proposals to help mitigate a crisis that is espcially harmful in New York.
According to an analysis of housing data by the Furman Center for Real Estate and Urban Policy at New York University, foreclosure filings in New York City for two to four family properites have increased from 3,461 in 2004 to 8,263 in 2007.
Foreclosures for two to four family properties in the Jamaica and Hollis section of Queens have increase from 233 in 2004 to 784 in 2007.
The Center for Responsible Lending predicts that in the near future, 2.26 million homes will endure foreclosure. Michael D. Calhoun, predicent of a congressional subcommittee dedicated to studying foreclosure predicts that in the 16th congressional district (South Bronx) one out of every five subprime loans will go into foreclosure.
Other states are proposing foreclosure moratoriums as well. Gov. Deval Patrick of Massachusetts instituted a case-by-case two month moratorium on qualifying homeowners. Activists in Michigan have been pushing Gov. Jennifer M. Granholm for an astounding five year moratorium.
Supporters are very clear that the proposed moratorium in New York would not be delivered on a case by case basis but would fully apply to all homeowners facing foreclosure. It would start the one year when the lender proves its entitlement to foreclosure and it would end the year with the court allowing the foreclosure proceedings to continue.
The bill calls for the lenders to fairly present the homeowners with viable solutions and repayment plans to continue paying their mortgage.
The homeowners failure to adhere to the repayment plan may institute a lift on the moratorium.
Mr. Padavan said, "This is not a giveaway. We're not paying these people's mortgages for them."
Until this bill has passed, homeowners should seek the help of licensed professionals to mitigate foreclosure plans with mortgage companies.