As Foreclosures Increase, It’s Better to Take Certain Precautions

September 11th, 2009 | Tags: Foreclosures

foreclosures increase

As the US economy reels under recession, people are increasingly finding themselves without jobs. Homeowners are faltering on payments, and banks are taking over the properties. Hence, foreclosures have become very common. As foreclosures increase, it’s better to take precaution.

Take, for instance, the case of Carolyn Patmon, who has lived in Carver Shores for more than three decades. She had at one point of time owned the house. Then she took a loan to renovate the property. As she was unemployed and was on the disability dole, she got a mortgage at the rate of 14 per cent.

Fifty nine year old Patmon was told that the rate would go down very soon. However, it did not. Very soon, Patmon found that she owed $115,000 on a mortgage of $42,000. She was also facing a foreclosure filing. Patmon’s story is a familiar one. The only difference with others is that she has been able to put a halt to the foreclosure. She is also working on loan modification.

Housing experts observe that assistance is available to people like Patmon but homeowners need to seek help very early. The process certainly will not be an easy one.

Stephanie Porta, head organizer for the Orlando branch of ACORN, a non-profit organization, says that the community could ask people to get a different job. The conversation could be a painful one but the organization will definitely tell people how to modify loan. Patmon says that she is grateful to the Association of Community Organizations for Reform Now (ACORN) for freeing her from foreclosure.

The first thing that homeowners should remember is not to leave their homes. For if the house gets vandalized in the owners’ absence then the bank can even charge a fee for the damage. Repeated follow-ups are necessary with the lender. If a person loses his job and knows that he may find it difficult to make the mortgage payments, he should let the lender know immediately in writing. The letters from the mortgage company should never be ignored.

The lender is also less eager to help a homeowner who has been very prompt on payment of monthly mortgage. It may seem ironical but a homeowner who has equity in his home, may find himself more at risk than others. It’s better to watch out for scam companies who promise to change the mortgage amount in return for an upfront payment.

Search Images:

Share and Enjoy: These icons link to social bookmarking sites where readers can share and discover new web pages.