While there are few markets in the country that have managed to survive the current housing market without any battle scars there are some markets that have experienced more serious issues than others. Two of the worst markets in the United States at the moment are Cleveland and Detroit; however, they are definitely not alone when it comes to markets that are falling with no end in sight any time soon.By and large, the riskiest markets at the moment are those that are experiencing the highest rates of foreclosures. Other factors that are contributing to problem areas include high rates of job loss and slow job growth. Markets in which the number of homes for sale is rapidly rising are also experiencing significant problems. Rapidly rising property values just a few short years ago is also proving to be a stumbling block for many markets.During the housing boom these markets commonly experienced property value increases of two-fold and even three-fold in many cases. Once the boom ended; however, these markets began to fall and as of yet, they have not hit the bottom. These markets are also at greater risk for problems due to the large presence of adjustable rate […]
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Mortgage lenders originated subprime loans on an increasingly frequent basis between 2001 and 2005. In order to generate business and compete in an over exuberant market, lenders became more flexible with product offerings and asset. These loans not only represented a financial opportunity, but also much higher risk for default. According to industry statistics, subprime lenders originated about one in five residential mortgage loans, yet foreclosure rates on subprime loans are ten times the average for all others. Consequently loss mitigation has become the new loan solution with government regulatory agencies now mandating that mortgage servicers offer loss mitigation programs to help borrowers avoid foreclosure.Loss Mitigation ProgramsThe primary objective of loss mitigation is to reduce or minimize potential losses incurred by the servicer, investor and borrower. Make no mistake about it; the investor will take the path of least financial loss. In other words, if there is equity in the property and the investor can recover some of their loss, they will foreclose and resell the property before agreeing to a modification of terms. It should also be noted that the rise in NOD and foreclosures is a nationwide problem and reaches beyond subprime loans. Loss mitigation options are […]
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This day has been looming over you for quite a while. Although you saw it coming, you felt there was nothing you could do. You can no longer ignore the foreclosure process at this point in time. You must act quickly to avoid being homeless and losing thousands of dollars.
To say that the foreclosure process is intimidating would be an understatement. If you wind up losing your home, it will be devastating and you may not completely recover for many years. Your credit report will show the foreclosure for seven to ten years and have a negative effect on your ability to get credit. You could also still be responsible for any short-falls from the bank auctioning your home as well. The good news is that there are options available to you to avoid foreclosure.
You must be proactive if you are to avoid foreclosure. Do something as soon as possible once you realize it will be impossible to keep your payments current. Don’t put it off until tomorrow, but act immediately. Taking too much time will only make things more difficult. People are often optimistic about their financial future and hope to be back on their feet before the […]
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