How To Get Home

Seems like everyone is talking about someone they know who is close to foreclosure. The bad news does travel fast. It is important to remember that no one wins in foreclosure. The home owner, the lender, and the neighborhoods all suffer as a result of the foreclosure.

Everyone agrees that the number of foreclosures is rising and that the previous years of aggressive lending (subprime) are partly to blame. Several blogs are dedicated to discussing the problems and tracking the increase of bank-owned properties.

There are some simple steps that a home owner should take in order to try and avoid foreclosure. It is important for the owner to be proactive and to communicate often with their lender. The Homeownership Preservation Foundation is a HUD-certified non-profit that offers advice and resources to help homeowners with financial trouble.

From a recent Freddie Mac, Roper survey, nearly two-thirds of delinquent borrowers say they are unaware of workout options from their lender. The borrowers never contact their lenders in over half of the foreclosure situations. While the likelihood of successful foreclosure avoidance depends upon each individual borrower’s financial situation, a 2004 Freddie Mac survey concluded that repayment plans could lower the probability of home loss by 80% among all borrowers and by 68% among low-to-moderate income borrowers.

If you know someone who is having trouble with their mortgage, encourage them to talk with their lender to learn about the options that are available to help them.

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