About foreclosures

Foreclosures, foreclosures, foreclosures! That is the most popular topic Realtors are constantly asked about. Let’s jump right in and talk about it. According to Realtor.org, the Center for Responsible Lending (CRL) estimates that 2.2 million households have or will lose their homes to increasing monthly payments in the next few years. A majority of this is due to subprime lending that we talked about last month as well as adjustable rate mortgages. Pat Combs, President of NAR (National Association of Realtors), said, “Foreclosures threaten the very communities that Realtors work to build. Realtors care as much about keeping families in their homes as we do about helping them find the home of their dreams, which is why NAR has partnered with CRL and Neighborworks America to give out Realtor members tools to help clients and customers at risk and educate homeowners about their options if they are facing foreclosure.” Measures are being taken with the government to sponsor programs to help homeowners stay in their homes. A bill was introduced in the senate on Monday, May 14th, that would provide nearly $300 million for ‘revolving’ loan funds, helping subsidize loans for families facing foreclosure. Inman News says that it is called the Homeownership Protection and Enhancement Act of 2007, or HOPE Act.
NAR has created a new brochure that illustrates examples of potentially dangerous mortgages, ‘predatory’ lending practices, identifies housing counseling organizations, and gives pointers on the steps homeowners should take as soon as they think they might not make a payment. Some options include: Forbearance, Reinstatement, Repayment plan, and Loan modification. If you or anyone you know needs or would like one of these brochures, please do not hesitate to ask!