Foreclosure help for homeowners

ritten by: George Haughton

Foreclosure help will come from unlikely source, Fannie Mae. In fact Fannie Mae now joins Freddie Mac in offering a deed for lease program. Therefore, those facing foreclosure have the option to rent their homes back for a period of time until they get their finances in order. This deed for lease allows the homeowner who failed to qualify for or cannot maintain a loan modification to transfer their deed or their interest in the home to Fannie Mae.

This process is really a deed in lieu of foreclosure,it does not show up on your credit report has a foreclosure. Foreclosure on your credit record prevents you from purchasing another house for at least three years with FHA and five years for conventional loans. Therefore, this program allows a homeowner to pay rent equal to the documented 31% of their monthly income pretax or gross income.

That is welcomed news for the close to one million homeowners who were served foreclosure notices last month. The estimate is that over 18.8 million houses stand empty in the third quarter, which has created a value and vandalism problem.

Therefore, we can say finally the lenders are really looking at the bigger picture. For example in Detroit that city has started to knock down empty blocks of houses and do not have any plans to replace these houses any time soon. Therefore, it makes total business sense to keep the homeowners in these homes and work it out.

This deed for lease does come with out some qualifying guidelines so you might want to look these up before you assume you qualify. For example it must be your primary home you live in. Fannie Mae or Freddie Mac don’t actually make loans to consumers so this foreclosure help is a quick measure to legally keeping homeowners in place, but again what are the guidelines and how long is this period.

Based on what I have read the guaranteed lease period is for one year and month to month after that. This action will ease the minds of many homeowners fighting foreclosure and help keep the neighborhood more stabilize. The truth a lot of these homes have become very hazardous and dangerous. In the state of California some communities speak about pools that are a breading ground for mosquitoes.

Freddie Mac unlike Fannie Mae rental lease is for a month to month.Therefore, what Fannie Mae has done is taken the big uncertainty out of the minds of the homeowners for at least a year. Some are now asking the question is a postponement of the inevitable?

Well the economy is said to be improving. However, some experts who follow the housing issue think the second wave of foreclosures is still in front of us. Therefore, creating an option like “deed for lease” might be an attempt to cushion the blow. This foreclosure help by deed for lease really is the answer for those facing foreclosures now and yet to come?

Foreclosure hardship letters to lenders

Don't leave a hole in telling your story


Fighting foreclosure requires a lot of calculated moves on the homeowner’s part. The fact is some things you have absolutely no control over while others you do. Take for example writing a hardship letter. What the lender wants to know is the main reason why you have not been able to pay your current mortgage and what is your plan to come current.

Just saying that your credit card debts is the reason, is not going to work. Lost of job or reduction in your works hours is certainly out of your control. If you work on commission but earning far less commission in the last year is again a reason acceptable as to why you were unable to pay your current mortgage. Don't mention any thing about filing bankruptcy this could hasten the foreclosure process, your lender want to hear how you are going work it out with their interest in mind as well.

Therefore, when you are writing a hardship letter remember to whom you are writing. In most cases it is an over worked staff who has been reading and listening to every excuse in the book. Therefore this is no time to write a novel but to make it brief and to the point. Also state your reasons why you would like them to consider your request for relief (help!).

By clear in what has changed financially that will help or hinder you from making your payments. Try to be truthful with your lender because this might be your only lifeline when it comes to fighting foreclosure of your home. Fighting foreclosure will require some calculate moves on your part, therefore consider writing a simple hardship letter .

Will foreclosure crisis ends by 2010?

Will the current foreclosure crisis ends by the year 2010? By now your family might have seen some of the worst impact of the the home crisis in your area. For example there is a story being circulating about Victoria Gotti fighting foreclosure of her NY home. It does not matter these days who are where you are foreclosure continues to affect most communities across the country. This can be seen in the falling home prices, foreclosure real estate ,job instability all of which is having an impact on families, even if your family name is Gotti.

Also home foreclosure has spread to the suburbs form the city from sub-prime to prime loans. Even homeowners with perfect credit scores and mortgage payments, reports now shows that these homeowners are going delinquent.

Therefore, we are now entering a new phase of the home foreclosure destruction. The estimate is that by late 2011 is the point of which the current foreclosure crisis might start easing. The real estate market will never be the same again, gone are innocent days or trusting times.

The current recession based on the government data started in December of 2007 the same year the hosing crisis spiked. About 74 percent of economist today predicts that the recession will end by the third quarter of 2010 the longest recession since world war two. However, unless the housing crisis ends sooner based on this graph it could go into 2011.

However, fighting foreclosure still requires a job that provide the necessary funds to pay ones mortgage payments regardless how low your mortgage payments may get after a loan modification. However, the unemployment rate is forecast to hit 9.1 form 5.8 before it is all over. So with the close to $800 Billion the government is trying to stimulate the economy to create more jobs and less foreclosure.

Education regrading home financing will be a must for future homeowners. In fact there are a few school program that is now incorporating this into their curriculum.
So if your family is fighting foreclosure educate yourself to win.

MBS, Foreclosure Lawsuits Jump

MBS, Foreclosure Lawsuits Jump

A easy way to lose your home

I have to say the article by ABC NEWS which was found on their web site is not uncommon when it comes to homeowner losing their homes due to predatory loan. In the article it report that in court the judge ruled that the lender must refund all the mortgage payments to the homeowner who was in foreclosure . The truth is the lender will eventually win in any fight, but you can by fighting negotiate better terms. The facts in this case points to the lender having not completely fair with the homeowner at application or after.

First of all the interest rate went from reasonable to outrageous. The other problem is that the home they were qualified for was out of their income bracket. The reality is these buyers got a great house but terrible financing advice and ultimately a loan that could not be maintain.

Too many foreclosure hurts neighborhood

Home Foreclosure is hurting neighborhoods real estate across America. The average single family home continues to fall because of the prevailing home foreclosures on the market. For example in march of 2009 the average home in the United States was $175,200 with values varying some what regionally.

Homeowners fighting foreclosure need to be aware of existing foreclosed homes in their neighborhood which represent a lowering of their home value . Therefore, if you are fighting foreclosure and prevailed your efforts will help in the stabilization of the home values of your neighborhood.

Therefore, the more foreclosed homes that you can point to in your neighborhood will represent a greater depreciation of your real estate equity and saleability . This is certainly crucial information if you are trying to sell your home as a "for sale by owner" or just needing an appraisal for refinancing. This is a reality check for those owning Las Vegas Nevada real estate to Florida Real estate just to name a few. The goal for the new administration was to stabilize the real estate market quickly, by bring the home prices back to normal.

Gone are the days of flipping houses with multiple buyers, get rich quick real estate investing or smooth real estate marketing. Houses for sale are staying on the market for much longer period of time. While those that are sold are sold at foreclosure auction at reduced prices. Foreclosure auctions have now become one of the popular ways to sell and purchase real estate.

Certainly with home prices falling and tax incentives abound it might be the best time for first time home buyers as well as real estate investors to invest in real estate . Carlton sheets think this is the time to buy low and this is the thinking of many rel estate investors right now. Therefore, home sales across the country are done as short sales selling from a large foreclosed inventory. I suppose any home sales will reduce the nations inventory of foreclosed homes bring the real estate market back to normalization. The point here is home prices are falling. Also those fighting foreclosure can make a difference in their community if they get to keep their home.

Averaage home prices across America.

Countrywide 11460 Reo for sale

According to the latest Zillow Real Estate Market Reports, home values in the U.S. decreased 14.2% in the first quarter of 2009