National Foreclosure Update

On Monday, Federal Reserve Chairman, Ben Bernake gave the go-ahead for congressional efforts to help homeowners in the ongoing foreclosure crisis.

At the Columbia School of Business in New York, Bernake said, “Finding ways to avoid preventable foreclosures is a legitimate and important concern of public policy.”

Legislation to assist homeowners facing foreclosure is currently making it’s way through the House of Representatives.

House Financial Services Committee Chairman, Barney Frank, a Democrat from Massachusetts, has supported the bill.

The legislation would allow the Federal Housing Administration to back $300 billion in refinancing loans for homeowners facing foreclosure.

Some experts have opposed the measure by saying that it punishes homeowners have not overextended themselves.

However, the support of Bernake will help Frank to convince the necessity of the bill.

Bernake also mention that if a homeowner wants to stay in the home, “The economic case for trying to avoid foreclosure is strong.”

He continued, “It is important to recognize that the costs of foreclosure may extend well beyond those borne directly by the borrower and the lender.”

He also said, “Clusters of foreclosures can destabilize communities, reduce the property values of nearby homes, and lower municipal tax revenues.” Also, foreclosures can drive housing prices lower.

Frank has stated that he will add measures from the White House to the bill to encourage support from both parties.

One measure that is highly supported by the White House is a reform of the FHA and new regulations that would allow it to increase the scale of its lending. Another is to give more power to the federal government to supervise the actions of Fannie Mae and Freddie Mac.

Bernake has vehemently supported those provisions.

He mentions that Fannie and Freddie “could do more” to aid the current housing crisis.

He contends that the two agencies need to raise more capital, “which they will need to take advantage of these new securitization and investment opportunities, to provide assistance to the housing markets in times of stress, and to do so in a safe and sound manner.”

During his remarks, Bernake did not address general economic concerns.
Last week the Federal Reserve Bank cut interest rates by another quarter of one percentage to 2.0%. Experts believe that the Fed wants to stabilize interest rates for the short term.

Local Foreclosure Focus

The Capital region in New York sustained a significant amount of damage in 2007, but during the first quarter of 2008 it has become one of the hardest hit areas in the nation. Sadly, foreclosure prevention efforts and bankruptcy courts are not providing any assistance.

Realtytrac reports that the number of properties in foreclosure has increase by 500 percent compared to the first quarter of 2007.

In Q1 2008, there were 608 foreclosure filings; in Q1 2007, there were 111.

Including the counties of Schoharie, Schenectady, Rensselaer, Saratoga, and Albany, there was one foreclosure for every 622 properties. The Capital area is faring better than Stockton, California with one foreclosure for every 30 homes; nationwide, there is one foreclosure for every 194 households.

Realtytrac shows that New York has the 30th highest foreclosure rate in the nation with Nevada being number one.

New York Department of Banking Superintendent Robert Neiman said that it is a “clear indicator that we are not near the end of the crisis.” Experts say that the crisis will get worse as rates on adjustable rate mortgages will go up over the next 18 months. According to Bank of America, $514 billion in ARM’s will reset in 2008, followed by $398 billion in 2009.

New York’s Foreclosure Prevention Working Group reported that seven out of ten homeowners facing foreclosure did not take any loss mitigation actions or sought any assistance in the matter. The group was formed in July of 2007 and consists of representatives from the Attorney Generals office, state bank regulators, and mortgage regulators.

Since most homeowners are not attempting to negotiate with their mortgage companies, many may think that bankruptcy is the only option. Therefore, homeowners have been declaring bankruptcy with the intention of stopping the foreclosure.

Comparing the first quarters of 2007 and 2008, chapter 13 filings in Albany have increased by 13 percent. Oddly, chapter 7 filings had decreased by 3.5 percent.

Francis Brennan, an Albany Bankruptcy attorney and former President of the Capital Region Bankruptcy Bar Association, said, “It’s certainly possible there could be a lag between the commencement of foreclosures and the bankruptcy filings.”

However, experts say that the first quarter is not a strong period for bankruptcy because many consumers are still feeling the effects of the holidays. Also, since Congress revamped bankruptcy laws in 2006, it has become significantly more difficult to obtain assistance through bankruptcy courts.

As an example, consumers wishing to declare bankruptcy must provide six months worth of pay stubs, and court fees have become higher. Such requirements make bankruptcy an option not available to many homeowners due to rising food and fuel prices and high mortgage payments.

According to the U.S. Bureau of Labor Statistics, the inflation rate has grown to 4 percent while wage growth is only 3.6 percent.

Capital Region Bankruptcy Bar Association President and Saratoga Bankruptcy Attorney James Doern, said, “People are literally making the choice between feeding their children, getting to work and paying their mortgage.”

Also, the foreclosure crisis is not solely affecting the Capital regions low-income neighborhoods. Comparing Q1 of 2007 and 2008, Saratoga county foreclosure filings rose from 6 to 137. Albany County rose from 40 to 305. Schenectady County rose from 17 to 101.

In the Capital area, lenders have repurchased 177 properties. Experts say that many homeowners are choosing to let their homes go into foreclosure because the value of the property is below the amount that they still owe on it.

Barbara Whipple, President-elect of the Capital Region Bankruptcy Bar Association and Latham Bankruptcy Attorney, says, “A lot of people are just walking away from their house because they’re finding they are just so under water.”

However people walking away from homes has not affected the Capital region like other areas because home values have remained steady. Comparing Q1 of 2007 and 2008, average home prices have risen 3 percent in the capital region, while nationwide they have tumbled 8.3 percent.

Experts warn that homeowners who walk away from their homes may be sued by lenders for funds not recouped from the resale of repossessed properties.

The most viable solutions for most homeowners would be to seek the assistance of a third party negotiation company.

For more information, please see, stopforeclosurecenter.com or foreclosure-solutions.biz or lewisstates.com

This article submitted by Jack Cukjati.

Foreclosure Legislation Update

On Wednesday, a House committee approved $15 billion in loans and grants for local governments to buy foreclosed homes.

The House Financial Services Committee voted 38-26 to approve the bill that is part of a larger package being pushed by House Democrats. Also, on Wednesday the committee passed legislation that would provide lenders with legal protection if they work with homeowners facing foreclosure.

House Republicans opposed the bill and argued that using federal funds to buy foreclosed homes could encourage foreclosure in the long run.

Representative Spencer Bachus (Republican, Alabama) said, “I don’t think we ought to be incentivizing foreclosure.”

Other members argue that certain provisions in the bill (such as making it mandatory for homes to be 60 days into the foreclosure process before they can be purchased) would prevent abuse. Supporters also claim that Congress must do more to help local governments deal with loss of taxes and maintenance of foreclosed homes.

Committee Chairman Barney Frank (Democrat, Massachusetts) said, “Cities are being badly hurt and this is the only vehicle proposed that goes to the aid of the cities and counties.”

The $15 billion will be divided up into $7.5 billion in loans and an equal share in grants. It will be distributed to the states based on foreclosure rate, home prices, and other factors.

Non-profit organizations and Government institutions would be eligible for the funding also. They could use the funds towards the purchase, rehabilitation, or resale of the respective properties.

$3.75 billion of the grant money will be dedicated to providing housing for low-income residents.

Republicans counter that the legislations is too costly and will add to the growing federal deficit.

Mr. Bachus said, “Putting aside the issue of how a large new federal program with a price tag of approximately $15 billion would be paid for, the bill’s ultimate beneficiaries are likely to the lenders, investors and speculators who own the vacant or foreclosed properties.”

However, the bill does allow the government to be repaid on zero-interest, non-recourse loans. Loans for homeownership would be repaid in 2 years while loans dedicated to providing rentals would be repaid in 5 years. Also, the government is entitled to 20% of any appreciation of the property.
The committee rejected a proposal by Republicans to make all of the $15 billions loans, and a measure requiring all states to match all funds received by the government.

Congress and the Foreclosure Crisis

Currently, 20,000 people are losing their homes every week due to foreclosure. At that rate, 100,000 more homeowners will lose their homes before Congress passes a bill to stem the foreclosure flood. Sadly, the proposals currently making the rounds in both chambers will do little to stop the foreclosure crisis.

In order for a worthy relief package to be drawn up, most of the provisions in the bill passed last week in the Senate will have to be scrapped completely.

The bill would cost $21 billion over the next 10 years. $15 billion of that would be going to tax cuts that would have no significant impact on the average homeowner facing foreclosure. One set of tax cuts would let businesses take temporarily larger write-offs for losses. Another set would subsidize renewable energy. A $7,000 tax credit for buyers of foreclosed properties could backfire by allowing banks to charge more for repossessed property that would encourage more foreclosures. Another measure allows non-itemizers deduct property taxes, which is a shady tax policy and does not help the more needy homeowners facing foreclosure.

Also, the House Ways and Means Committee produced an item in the bill that provides tax breaks for first time homebuyers. Buyers should not be encouraged to jump in to properties when further declines in housing price are imminent. The resources available should be focused on preventing foreclosure.

The bill does, however, have some helpful items. Among them is money for local governments to buy foreclosed properties, money for foreclosure prevention counseling, and money for issuing tax-exempt bonds to help refinance sub-prime mortgages. While these are all helpful propositions, more must be done.

Democrats are pushing for a bill that would provide for the FHA to guarantee the restructuring of mortgages for at-risk borrowers. One major advantage of the plan is that due to the nature of the foreclosure crisis, the troublesome loans could be modified in great quantities.

But that plan does have some problems as well. For instance, the average American taxpayers would be responsible if the FHA borrowers defaulted. Congress cannot ask the taxpayers to carry the burden when Congress has not done all that they can to stop the crisis in other ways. One solution may be to give bankruptcy courts the power to modify mortgages.

The Senate had that provision in its most recent bill but eventually dropped it. Bankruptcy legislation has not been able to get out of the House either. Democratic leaders see it as their duty to bridge the gap and bring this type of legislation to the forefront. Both the Senate and the House must make a stand to the mortgage industry that may try to block any help for the crisis that they started.

The plan for the FHA rescue program would rely on lenders to reduce the loan amounts to an acceptable level for FHA to take over. Sadly lenders are not willing to do that. If lawmakers would increase the power of third party loss mitigation services to modify loans, it would make lenders more likely to reduce loan amounts on their own.

Congress has some of the right plans in place, but they need to stand up to the mortgage industry that helped create the current foreclosure crisis.

For more information, please visit:

Stopforeclosurecenter.com
Foreclosure-solutions.biz
Lewisstates.comForeclosure-help.biz

Senate Bill

On April 10, 2008, the U.S. Senate approved a measure that would help both homeowners and businesses during the current foreclosure crisis.

Some supporters of the package, which passed by an impressive 84-12 vote, say that it doesn’t do enough to help homeowners who have mortgage payments that they can’t afford. The measure faces an uphill battle in the House of Representatives.

Senate Majority Leader Harry Reid says, “This is just the beginning of the process. This bill will go to the House. With the house and the White House we can come up with a piece of legislation fairly quickly.”

Currently, the package offers enormous tax breaks for homebuilders, a $7,000 tax credit for those buying foreclosed properties, and $4 billion in grants for communities to buy and fix up abandoned properties.

The White House has not threatened to veto the plan although it has openly opposed the measure. Experts say that parts of the legislation may add to the housing crisis by depressing some home values.
Financial Services Committee Chairman Representative Barney Frank has drafted a House Bill that has the FHA stepping in to back $300 in refinanced loans for over 1 million homeowners facing foreclosure.

South Florida Foreclosures

South Florida foreclosure experts are busier now than they have been in years.

20 years ago there were about 50 foreclosures a week in Broward County.

Currently Broward County has about 1,200 home foreclosures per week. Foreclosures have gone through the roof lately, and there are darker days to come.

As little as two years ago, Broward County, home to 1.8 million people, and Miami-Dade County were choice locales for Real Estate investors looking to make money on high priced condominiums.

But, when rising adjustable rate loan payments started going up, and when the housing bubble burst, things started to get worse.

South Florida has been severely affected by the foreclosure crisis. Housing prices have been plummeting and over 11,000 people filed bankruptcy in 2007.

Experts say that many homeowners will turn to bankruptcy as the only option to stopping foreclosure.

It’s only going to get worse with experts predicting that in 2008 Broward County alone will have 2,000 foreclosures per week.

The recent rise of foreclosures has caused Broward and Miami-Dade courthouses to add a third day of foreclosure auctions per week to its schedule.

Since the state bankruptcy laws changed, the 2007 total pales in comparison to the record 36,000 bankruptcies in 2005. However, some speculate that a sluggish economy could shatter the 2005 record.

However, one man’s trash is another man’s treasure.

Real estate experts have been holding real estate investment classes with as many as 20 students per session.

In South Florida and other foreclosure prone areas, foreclosure bus tours have carried investors to dozens of properties per weekend.

As a result of the foreclosure crisis, the bankruptcy lawyers in South Florida have been busier than they have been in decades.

Sadly, they are just going to get busier, since most people facing foreclosure see bankruptcy as their only option.

Bankruptcy firms are processing about 3 new bankruptcy applications per day.

“Property Flipping” has left many investors holding properties that they no longer can afford, and they see bankruptcy as the only way out of foreclosure.

However, many experts say that the worst of the foreclosure crisis has yet to be seen.

Estimates say that the real estate crisis will cause a halt on building production therefore causing many construction workers to be out of work.

The entire food chain of the real estate business is being affected except for the bankruptcy attorneys.

Homeowners facing foreclosure should know that they have more options available.

For more information, review the following websites:

Stopforeclosurecenter.com
Foreclosure-solutions.biz
Foreclosure-help.biz
Lewisstates.com

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.

Foreclosure Pets

The number of animals being surrendered to animal shelters is soaring as the US foreclosure crisis grows—some shelters have 35% more animals now than this time last year. As more and more people lose their homes, 100’s of animals are being surrendered. Even worse are the animals just abandoned without out food or water—sometimes left locked inside homes. It’s often the real estate agents and property inspectors who are finding the abandoned animals in horrible conditions and sometimes already dead.

Another outcome from the surge in foreclosures, is fewer new homeowners. Fewer homeowners means there are fewer pet adoptions taking place across the country. There aren’t enough people to adopt the influx of pets.

Sadly, many people facing foreclosure are waiting until the last minute to make plans and many families are having a hard time finding rentals that allow pets, especially medium and large dogs. It is illegal in most states to abandon your animals not to mention barbaric.

The Philadelphia SCPA is waiving fees for surrendering pets due to foreclosures. And the Salem Animal Rescue League in New Hampshire is looking at providing temporary shelter for pets until their families get back on their feet after a foreclosure.(via therealestatebloggers)

The crisis is widespread enough that the Humane Society of the US and the ASPCA have issued statements urging people facing foreclosure to plan for their pets. The HSUS has good tips on how to protect your pets:

Give yourself enough time. If possible, check ads and contact real estate agents and rental agencies at least six weeks before you plan to move or when you first learn that foreclosure and/or eviction may be in your future.

Make use of available resources. Contact the humane society or animal care and control agency serving the area into which you are moving; the agency may be able to provide you with a list of apartment communities that allow pets.

Gather proof that you’re responsible. The more documentation you can provide attesting to your conscientiousness as a pet owner, the more convincing your appeal will be to your future landlord. This can include statements from current property managers and neighbors that you maintain your pet responsibly, as well as copies of veterinary records showing ongoing pet care.

Get it in writing. Once you have permission from a landlord, manager or condominium committee to have a pet, be sure to get it in writing. Comprehensive agreements protect people, property and the pets themselves.

The HSUS also has tips on lowering the costs of keeping your pets:

While buying expensive toys and accessories has become a popular way to demonstrate your attachment to your pet, your pet can be just as happy with less expensive toys or homemade toys. They need your love and attention more than a pricey product. The HSUS has tips for inexpensive toys for both cats and dogs.

Keep your pets safe inside or on a leash while walking outside. Animals allowed to roam freely are more prone to accidents and resulting veterinary bills.

Let your veterinarian know that finances are tight and ask that he or she prescribe only the most vital vaccinations to keep your pet healthy.

Consider pet health insurance to minimize the shock of an expensive bill from the veterinarian in case of an unexpected illness or injury.

This article courtesy of Sarah at Pet Project.

Foreclosure Predators

The current foreclosure crisis strikes at the heart of the American economy, the homeowner. Homeowners across the nation are being forced to leave their most prized investments and face financial instability.

As if this was not shameful enough, many homeowners are being defrauded by so-called “Foreclosure Specialists.” In reality, these specialists are small businesses dedicated to preying upon unsuspecting homeowners facing foreclosure. Many of these businesses promise financial stability and the ability to save the homeowners home, but their main focus is to take as much money from the homeowner as possible and leave them still in foreclosure.

Thus, they are commonly referred to as “foreclosure predators.” These companies use emotional instability to guide their prospects into paying them egregious fees for little or no work on behalf of the homeowner. While the homeowners they promise to help are thrown out into the street, they are taking as much money from them as possible. This type of predatory business preys upon many unsuspecting homeowners every year.

Unfortunately, the businesses that do, in fact, help homeowners are becoming tied in with such predators. Not only do the predators hurt their own customers, but they also prevent other reputable companies from actually helping people. The following tips may be helpful in determining if a foreclosure consultation company.

First, a homeowner must be sure that the consultant is a member of the Better Business Bureau. If a consultant dodges this question, they are generally not a reputable company. Also, it will help the company is a Reliability Partner with the BBB. This designation is only given to the highest rated companies within the BBB. This verification shows that the business has never had any unresolved complaints against it. This is a very reliable way to determine the legitimacy of a business.

Also, a homeowner should ensure that the company is a member of Dun & Bradstreet. This financial institution provides valuable commercial information regarding some businesses. If a consultant is a member with D&B, they are most likely among the elite in their industry.

Lastly, do not be concerned with up front fees, but beware of guarantees. Most consultation firms must charge up front fees for the simple reason that once a home is saved, many times the homeowners do not feel the need to pay them. Guarantees, however, are not the mark of a good consultation firm. Reputable firms understand the work that it takes to save a home. Therefore, most do not guarantee anything because it is a risky business. When choosing a consultant, homeowners should choose a firm that conducts an interview to determine whether the homeowner will qualify.

Foreclosure predators will always be attempting to defraud homeowners during perilous times, but with close examination, a homeowner can severely reduce the chances of being caught in a “foreclosure scam.”

This article submitted by Jacob Cukjati
For more information see stopforeclosurecenter.com

The Education of the Homeowner

THE EDUCATION OF THE HOMEOWNER

The current foreclosure crisis is affecting millions of homeowners nationwide. Unfortunately, most homeowners are uneducated regarding the foreclosure process in their respective states. It is the duty of the mortgage company to provide the homeowner with all possible information regarding foreclosure; sadly, the mortgage company rarely provides the homeowner with any information.

If the mortgage company refuses to take the time and effort to educate homeowners properly, the duty then falls to the homeowner. Homeowners facing foreclosure must take it upon themselves to learn as much as possible about the state foreclosure laws that apply to their homes. Close examination reveals that the process of foreclosure varies greatly from state to state.

For example, in Nevada, many mortgages allow lenders to sell a property when an owner defaults without filing a legal action. Homeowners in Nevada have been ransacked by that staggering revelation. How many homes in Nevada could have been saved, by taking early action, if homeowners would have been informed?

Also, Texas foreclosures are very fast when compared to other states. It is not uncommon for foreclosures in the state of Texas to be complete in 3 months. In most states, if a homeowner has not paid their mortgage in 3 months, foreclosure is started. In Texas, the home would be sold at auction.

Redemption rights also vary between states. In some states, homeowners have a right to redeem their home after it has been sold at auction. In other states, the owner has no post-auction rights.

It should also be noted that foreclosures may be processed in and out of court. The regulations vary greatly by state. Some foreclosures require lengthy court proceedings. In others, the homeowner may never have to appear in court.

It must be concluded that the education of homeowners should be a primary concern of all involved with the foreclosure process. How many homes could have been saved if a homeowner had been educated? How many homeowners had the power to save their homes but did not due to a lack of information? It is the duty of the homeowner to obtain proper knowledge of all foreclosure proceedings in their respective states, and to respond in accordance to those guidelines to maximize the possibility of a foreclosure being stopped.

Helpful Resources-
Lewisstates.com
Stopforeclosurecenter.com
Nationalforeclosureblog.blogspot.com
Foreclosure-help.bizForeclosure-solutions.biz

The Saddest Truth About Foreclosure

Foreclosure is a sad thing. It causes economies to falter. It causes people to lose their homes. It causes families to be destroyed. The affects of foreclosure on a society can damage the lives of millions of people. Foreclosure leaves a path of destruction in its wake. It leaves widows homeless. It leaves families divided. It leaves homeowners in shame.
The tragedies that accompany foreclosure are almost incalculable, but what if there was something worse? What if someone had the power or knowledge to help a homeowner but did not? What if the broken families could have stayed together? What if the widow could have kept their home?
Sadly, this is the situation we are currently facing in America. Mortgage companies have specific departments dedicated to helping homeowners in foreclosure. These departments focus specifically on homeowners who have encountered financial hardship and need assistance from the mortgage company. Every month, these departments help a certain amount of homeowners, and yet thousands of homeowners still lose their homes every day.
The answer is very simple. The mortgage companies do not have the resources to help a significant amount of homeowners. Key departments in the mortgage companies are woefully understaffed, and they are receiving a record amount of homeowners to deal with. The problem lies with the mortgage company.
Now, let us examine closely how a homeowner may go about obtaining the assistance of their mortgage company.
Firstly, the homeowner must get in contact with the mortgage company. Now, this may seem like a very simple task, but an eye-opening study reveals that only 40% of homeowners actually get in contact with the mortgage company while facing foreclosure. This staggering statistic reveals that 60% of homeowners never speak with anyone from their mortgage company during foreclosure.
Now, if a homeowner happens to be one of the fortunate 40% then they have a daunting task to face. The homeowner must convince the mortgage company to send a workout agreement. This agreement is very complex and usually involves about 35-40 pages of financial paperwork. A separate study reveals that only 10% of all homeowners receive a proper workout agreement, indicating that 90% of all homeowners never have a solid financial opportunity to save their home.
The next step is to fill out the workout package perfectly. In fact, this extensive document must be absolutely infallible for the mortgage company to even look at it. If the package is missing any information, not formatted correctly, not in the proper order, or is not completely tailor-made to the mortgage company’s specifications, then it will not be considered for any type of agreement.
Finally, if the homeowner has jumped through all the hoops that the mortgage company has put in front of them, yet another task remains. The homeowner must negotiate with the mortgage company to obtain an affordable repayment plan. Many times the mortgage company’s idea of what a homeowner can afford differs dramatically from reality. It is up to the homeowner to convince the mortgage company to give them a deal that is financially viable.
So, now that the homeowner has laboriously contacted the mortgage company, persuaded them to send a workout package, completed the package with perfection, and negotiated an affordable repayment plan, the home can be saved from foreclosure. Sadly the vast majority of homeowners are not able to do this because of the operations of the mortgage company.
Homeowners need assistance in dealing with the mortgage companies. The American homeowner needs someone to come to the rescue and deal with the people that have the power to help. Some companies are accomplishing that every day, but the average homeowner does not have access to these types of firms.
Until then, we will have homeowners losing their homes to the very people that have the power to help.
It is quite sad indeed.