Tips To House Owners About Battling Foreclosures

February 18th, 2008 | Tags: Foreclosure

The monthly mortgage repayments for Denise Knudson jumped from $1,300 to $3,300. Somehow she and her husband managed the first installment. But how were they to keep it up regularly? If she thought too much the only solution open would be to commit suicide. But the couple came out with a smile after attending a help session at Martin Luther King gym near Fair Park last Saturday.

The meeting with the lender was positive. The latter agreed to refinance the loan at a lower rate. The Knudsons were one couple among the many – nearly 65 persons who attended the meeting between lenders, counselors and advocates. The focus was on finding ways and means of avoiding the inevitable foreclosure. The meeting was part of many such workshops held across the nation organized by ACORN. Of those who attended many were facing financial problems because of loss of job or death of earning member.

The foreclosure figures however continue to be grim. In North Texas it is up by 27% looking at the figures registered for March 2008. Across the country in the previous year 1.25 million units had been foreclosed. This is against the background of a falling real estate market, economic slowing down and widespread use of sub-prime risky mortgages.

Akbar, the southern regional director of ACORN said that most of the trouble stems from the fact that the majority of the borrowers are too shy about contacting the lenders; they do so at the last minute when it is too late. But the sooner the come forward the better chances they have of saving their houses. In many instances the borrowers had not read the mortgage papers property and did not know the grim implications. The people will have to be made financially literate.

One such victim is Sally Faggett who runs the risk of losing her house in Dallas as the interest shot up from 6% to 11%. Now the threat is that it will go up to 13%. Foreclosure is just about knocking at her door. After attending the workshop her reaction is mixed – she can refinance but only if she pays up part of her debt. That she will not be able to do without taking on a second job. This will take time.

The Mayor of Dallas, Tom Leppert was happy to see lenders and borrowers sitting at the same table to thrash out matters.