Beware of Home Foreclosure Rescue Scams
- Scam artists often target homeowners who are struggling to meet their mortgage commitment or anxious to sell their homes. Recognize and avoid common scams.
- Assistance from a HUD-approved housing counselor is FREE.
- Beware of anyone who asks you to pay a fee in exchange for a counseling service or modification of a delinquent loan.
- Beware of people who pressure you to sign papers immediately, or who try to convince you that they can “save” your home if you sign or transfer over the deed to your house.
- Do not sign over the deed to your property to any organization or individual unless you are working directly with your mortgage company to forgive your debt.
- Never make a mortgage payment to anyone other than your mortgage company without their approval.
Del Mar California real estate
U.S. Home Foreclosures Up 18%
San Diego real estate sales
RealtyTrac. released a report today that showed U.S. home foreclosure filings in May were 18 percent more than the same period last. On the positive side, home foreclosure filings in May fell 6 percent from April. This report stated that more than 321,000 households received at least one foreclosure-related notice last month.
David Urani, an analyst with Wall Street Strategies, said:
“Let’s remember that this is the third biggest month of foreclosures filings in history, behind the past two months, so even though it fell by 6 percent, we’re still at 321,000 (homes) here and that’s a big number. A glut of home supply and continuing downward pressure on prices could also make the coming months difficult for homebuilders. It’s kind of a reminder that, even though we’re seeing these sales increases lately, there’s still a big time foreclosure problem out there, I think that’s snapping people back to reality a bit.”
In California, 92,249 properties were foreclosed in May, the highest total of any state and up almost 23 percent from May 2008, RealtyTrac reported.
New Relief Program For Homeowners at Risk of Foreclosure
Effective December 15, Fannie Mae and Freddie Mac the government-controlled mortgage underwriters, are sponsoring various relief plans for homeowners at risk of foreclosure.
Fannie and Freddie hold almost 60 percent of all U.S. mortgages. With this kind of reach, the new programs should have a real impact. Government officials said the program said it wasn't likely to stem the housing downturn on its own, but said it could help hundreds of thousands of homeowners. Plus, banks will receive an $800 fee for every loan that is reworked.
Like most homeowner relief plans, there are requirements that borrowers must meet to qualify:
- Be at least three months behind on their mortgage payments
- Owe the bank at least 90 percent of what the home is worth
- Live in the home as a primary residence
- Not be in bankruptcy
- Be able to prove that they're not just trying to skip out on the loan
- Loan must have been written before Jan. 1, 2008
- Loan must be held by Fannie or Freddie, or investors agreeing to participate.
Lenders will adjust interest and the length of the mortgage — extending them up to 40 years — and even principal to bring payments within 38% of the household gross income of the homeowner. The principal will still be owed, but it won't accrue interest.
Cramer Calls the Bottom in Real Estate Market
A Record Number of Homeowners Avoid Foreclosure in the Second Quarter
Summary of the “Housing and Economic Recovery Act of 2008
President Bush Signs Historic Housing Bill
Second Home Foreclosure Tax Penalty
Goverment’s FHASecure Refinances 200,000th Mortgage
183,000 Homeowners Get Help To Stay In Their Homes
Real Estate Subprime Mortgage Five-Year ARM Freeze Announced
A Record Number of Homeowners Avoid Foreclosure in the Second Quarter
A little good news for the housing market. HOPE NOW, a private sector alliance of mortgage service reps, counselors, and investors working to prevent foreclosures, reported today that it helped a record number of homeowners avoid foreclosure in the second quarter, completing more than 522,000 mortgage workouts for loans that were headed for default.
Mortgage service reps provided workouts for approximately 181,000 borrowers in June, an increase of 14,000 over May. Approximately 105,000 of those received some form of a repayment plan.
HOPE NOW also reports that the total number of foreclosures prevented by mortgage service reps, since its inception in July 2007, has climbed to approximately 1.9 million. A few of our prior popular posts on home foreclosures were: