Nearly 3 million homes received foreclosure notices in 2009 according to RealtyTrac.
Since the housing market’s peak in July 2006, home prices have plunged 30% on average, with prices in some markets, such as Las Vegas, Phoenix and parts of Florida, falling more than 60%. NAR’s Yun estimates home-equity losses from the housing meltdown totaled $7 trillion at the end of 2009.
Reasons homeowners file for foreclosure
The main reasons that homeowners file for foreclosure include job loss, business failure, divorce or death of spouse, illness, relocation, reduced income, mortgage fraud, and predatory lending. (Short Sales and Foreclosures: What Buyer’s Representatives Need to Know, page 10).
The main reasons that homeowners file for foreclosure include job loss, business failure, divorce or death of spouse, illness, relocation, reduced income, mortgage fraud, and predatory lending. (Short Sales and Foreclosures: What Buyer’s Representatives Need to Know, page 10).
For the past three years, payment increase/mortgage adjustment is the top reason homeowners have filed for foreclosure. (SFR training, December 2009).
The big question for a homeowner in financial straits is figuring out where to turn. What are their options for easing their distress?
Resources for homeowners facing foreclosure
Here are just a few places homeowners can turn for answers:
makinghomeaffordable.gov – This website provides invaluable resources for distressed homeowners including free counseling from a HUD-approved housing counselor who can assess your situation and help you determine the best steps for you and your family to take to help ease you out of your financial straits.
Avoiding Foreclosure – This website from the U.S. Department of Housing and Urban Development provides information on state and local foreclosure resources, discusses tips on avoiding foreclosure, and offers information regarding refinancing options.
This website from the Federal Trade Commission is another helpful resource. It provides tips and strategies for homeowners who are having trouble paying their mortgage or facing foreclosure.
For distressed Florida homeowners, the Florida Bar offers resources to help homeowners facing foreclosure, or who fear that they might be. You’ll find some really important information on this website including this very important tip:
Avoid foreclosure-prevention or loss-mitigation companies
If you fall behind in your mortgage payments, many for-profit companies will contact you promising to help you avoid foreclosure. Some may even appear to be affiliated with your lender or the federal Department of Housing and Urban Development. Many also list their services on the Internet and ask that you fill out a referral form online. It is best to avoid dealing with these companies. Most will charge you a hefty fee up-front for information that your lender or a HUD-approved counselor will provide to you for free. You can obtain the same workout plan or a better plan for free by contacting your lender or a HUD-approved counselor. Use your money to pay the mortgage instead.
The Florida Bar – Foreclosure Help for Consumers
