Free Foreclosure Articles And Foreclosure Information

California’s Lake County hit record foreclosure rates in September this year when it had 136 foreclosures, an increase of 14 percent from August and a staggering 3,514% above September 2007 figures.

Based on reports from RealtyTrac, Lake County’s third quarter foreclosure properties totaled 470, ranking it 12th among California’s 58 counties in terms of number of foreclosures per capita.

In September, California’s foreclosure filings decreased by 51 percent from August following efforts by Governor Arnold Schwarzenegger to control foreclosure rates by issuing moratoriums on foreclosures. RealtyTrac’s chief executive James J. Saccacio noted California’s legislation in early September that requires mortgage lenders to contact borrowers before registering a notice of delinquency not less than 30 days in advance.

Schwarzenegger has also proposed initiatives that would prevent future mortgage crisis in the future, including the following:

• reevaluation of lending processes and licensing prerequisites for loan originators
• enforcement of federal financial regulations by the California Department of Corporations and Department of Real Estate
• counseling requirement for borrowers using risky types of mortgages and
• imposition of penalties on real estate professionals violating lending regulations

The following web sites have also been launched to help troubled homeowners, especially those in Lake County:

• www.dist02.casen.govoffice.com
  This is a site run by Senator Patricia Wiggin, who has co-authored a state law that gives tax relief to distressed homeowners.
• www. foreclosureinfoca.org
  This is run by the California Bar Foundation to help homeowners avoid foreclosure. It is available both in English and in Spanish.
• www.hud.gov/hopeforhomeowners/consumerfactsheet.cfm
  This is run by the U.S. Federal Housing Administration to provide information on its HOPE for Homeowners Program.

Governor Schwarzenegger also called on the national government to require mortgage loan originators to be responsible for part of loan risks to ensure proper underwriting of loans. In a legislative session this year, the governor has signed several bills from state legislators that aim to help homeowners facing foreclosures and borrowers in distress.

The U.S. Department of Housing and Urban Development has approved housing counseling agencies to provide assistance to homeowners in trouble of losing their homes to foreclosures. With a 55 percent increase in clients since it started in 2001, more and more people have benefitted from the counseling services these non-profit agencies provide.

With the growing number of clients seeking help in their foreclosures problems, HUD has announced that it will provide additional Housing Counseling Grant’s to non-profit agencies to fund additional counselors for foreclosures prevention. HUD has already funded $50 million this year for foreclosure prevention counseling efforts.

This fund was provided to at least 1,800 counseling agencies that provide help to homeowners with their mortgage concerns and assist them in communicating with their servicers. Federal support has also reached $360 million to support these efforts.

These counseling agencies are helping troubled homeowners deal with foreclosures by helping them review their financial situations. They also help these troubled homeowners to talk with their lenders and work out a best solution for their mortgages that would be beneficial for both parties and avoid foreclosures. These agencies also conduct seminars and awareness campaigns to help neighborhoods deal with the problems associated with foreclosure properties.

In one particular case, counselors from Southwest Improvement Community, a non-profit agency approved by HUD, helped a medically-challenged Yolanda Garcia. She is a resident from Denver, who had problems paying her mortgages after a leg surgery, and sought mortgage counseling.

After discussions with Garcia’s lenders, her interest rates dropped from 10 percent to 3 percent. Thousands of similar cases have already been registered, with homeowners saving their homes from foreclosures.

Officials from the Housing and Urban Development have signified that the presence of housing counselors is crucial in addressing the current housing crisis. A resolution to the problems of the housing and mortgage industries is a vital key to the economic recovery of the country.

What does one do when the government effort to prevent foreclosures has been falling short? A city sets an example in making the best out of the Massachusetts foreclosures problem.

New Bedford is a quaint community filled with working-class neighborhoods. However, the once picture-perfect city has been struggling with a common problem lately – that of foreclosures. The housing crisis has not only been an eyesore and constant nuisance for residents; it has also threatened to plunge real estate value in the area.

The city’s housing problems have added to Massachusetts’ foreclosure problem. The number of troubled homes has risen to 380, a big leap from 175 from three years ago. Because of this, the neighborhood, headed by Mayor Scott Lang has decided to make concerted efforts to solve the problem.

New Bedford has decided on a very simple yet effective solution. Instead of depending on banks and investors who are thousands of miles away, the city has been planning to employ city employees to demolish foreclosure homes which have no hope for rehabilitation.

Meanwhile, those that are salvageable are renovated and sold to first-time home buyers who are chosen via lottery. Just recently, the city spent $280,000 to renovate a deteriorating multifamily home and was able to sell it.

The grassroots effort has brought back stability to the neighborhood, especially to those hardest hit by the crisis. Patrick Sullivan, the director of the local Office of Housing and Community Development said that the city was also trying to ensure federal and state grants to finance the demolitions and renovations. A grant would be easier to obtain in cases where the substantial back-taxes are owed or if a house is structurally unstable and becomes a community hazard.

So far, the foreclosure program of the city has gathered strong support from its residents.

Foreclosure home sales, including evictions which are to take place in November 26, 2008 to January 9, 2009, have been suspended by Fannie Mae. The temporary halt is true for occupied single-family homes. The said move is taken in support of the streamlined modification program.

Affected borrowers now have the chance to keep their properties while they are waiting for the implementation of the streamlined modification program. They will be allowed to stay in their mortgaged properties until further help is within their access.

The program, when implemented, is a great help to distressed borrowers. It will help borrowers acquire lower interest rates, extension of loans or even postponed payments. This initiative is aimed at reducing the number of state foreclosures.

According to Fannie Mae President, the suspension will give a chance to homeowners who are capable and willing to keep their properties to avoid foreclosures.

In joint efforts with servicers and foreclosure lawyers the approximately 10,000 homeowners who will be affected by the suspension will be kept track. Occupied homes will be temporarily spared from foreclosure.

In addition to the suspension, borrowers will be helped in reviewing their workout options. Fannie Mae personnel will check whether all possible instruments to help in the repayment of problematic loans have been exhausted.

Fannie Mae encourages borrowers to seek help from their loan servicers, regardless of the conditions of their loan, as they could help find solutions to lessen the debt burden of borrowers and prevent foreclosure.

Fannie Mae has been taking several measures in order to help prevent the widespread foreclosures in the country. It is dedicated in serving the housing market. It will exert all efforts so that housing problems are avoided as much as possible. Among its primary objectives is to provide the American housing market with affordable homes.

In California, more and more real estate professionals and companies have been taking on the business of helping borrowers negotiate loan modifications with mortgage lenders, as the number of homeowners facing foreclosures increase and as more loan modification funds are offered by the federal and state governments.

To enter the loan modification market, these agents and brokers who planned to charge fees upfront from borrowers had to sign advance fee contracts with borrowers. The contracts require the parties to put fees in a trust deposit account from which the broker could draw from as the loan modification progresses. Advance-fee contracts had to be approved by the California Department of Real Estate before the contracts become valid.

Borrowers need to check that they are dealing with licensed brokers, as there are lots of companies which have sprouted overnight to take advantage of the rise in foreclosure properties and borrowers in danger of foreclosures.

California Attorney General Jerry Brown has just announced the arrest of three people who put up First Gov, also known as Foreclosure Prevention Services, which charged $1,500 to $5,000 but failed to deliver promised services to homeowners.

One of the legitimate negotiators who have produced results for homeowners is Guardianship Real Estate Services in Redlands. It imposes a fixed fee of $3,000, with $1,600 paid upfront and the $1,400 paid after the loan is modified and the homeowner is able to avoid foreclosure.

Another one is Home Resolution & Credit Services Inc. which charges $2,500 upfront and has about 25 processors negotiating with lenders for about 300 borrowers. Its president Robert Aldana said that his processors have achieved outstanding results, such as two percent fixed-rate, debt relief for five years and payment relief until the home is sold.

Meanwhile, what Fortune Bancorp has done to get into the foreclosure prevention business was to leverage the services of licensed independent brokers by hiring them as partners to work under its Credit Angel service. Brokers get $1,250 for each successful modification for borrowers who each pay a fixed fee of $2,850.

Foreclosures created a large problem for Focus Property Group. They bought a government estate with 1,710 acres in size located in Kyle Canyon three years ago, fulfilling a promise to make Mount Charleston a suburb.

The group spent $510 million to construct properties which they gained from Bureau of Land Management bidding. The project named Kyle Canyon Gateway, with an estimate of 16,000 houses, was permitted by the city of Las Vegas.

That was before, though.

No house was ever built, and it was the reason the property was filed as foreclosed by Wachovia Bank, according to Chief Executive John Ritter of Focus Property Group.

Nevada’s foreclosure problem was envisioned by officials of Las Vegas as sustainable which shows that a district’s growth can go on without the resources being overtaxed.

On the other hand, the project, being miles away from the city, is one thing that the environmentalists complained about as it may result to a long travel for commuters. Mount Charleston residents said that a development this large might be a burden for them.

Rebecca Grismanauskas, a resident, said she feels sorry for the numerous Nevada foreclosures, but it would be better if no residential or business development will occur because the area has no sufficient facilities and services for it to be more populated.

The group was sued by Wachovia for failing to pay for the development of Las Vegas.

In addition, Inspirada, located in Henderson, is currently being developed by the group where homebuilders failed to make payments to J.P. Morgan and Chase & Co.

Up to five properties in Inspirada are sold every week. Unfortunately, sales went down due to unemployment, according to Ritter. He also made a statement about the market getting worse each day and that people should not be too confident in their businesses which is one lesson to be learned.

There was a rapid increase in foreclosure, but Ritter is positive that the market will recover to its normal state soon.

Foreclosure problems have given even more worries for the average American. The housing crisis has brought about an onslaught in anti-foreclosure measures and foreclosure prevention policies from neighborhood associations to government programs.

Still, for those who are looking into investing in real estate, the situation may mean great opportunities to help troubled homeowners while increasing profits with the most minimal effort.

So how does one go about investing in real estate foreclosures? One just has to keep these two simple tips in mind.

Vigilance is the Key

One has to be constantly alert for troubled property owners seeking a way out of their problem. Knowing and understanding the situation of these homeowners would already give the investor a good starting advantage over others.

Know the Ins and Outs of Loss Mitigation

To find the best deals, one must learn the process of loss mitigation. The best thing about this process is that it doesn’t invite competition from other investors. Also, one doesn’t have to go through a bidding which may just drive profits down. Since lenders are under great stress to decrease bad loans, they are more amenable to go into negotiations and give discounts for loans.

Troubled homeowners may choose from two options — to continue with foreclosure and await eviction, or to find a buyer and preserve their credit. To save the home, the investor, on behalf of the homeowner, enters into a settlement with the lender.

Perfecting loss mitigation does not just make you a trusted ally of homeowners facing foreclosure; it also means establishing a relationship with lenders. Being a trusted middleman for negotiations will ensure that with each client, smoother and easier transactions will follow.

Also, this will not only help clients. If successfully done, the role reaps good monetary benefits and serves as free advertising for future foreclosure leads.

In Nevada, the grim status of the economy is causing a negative ripple in this valley state resulting to increased cases of foreclosures and unemployment. On a daily basis, 35 families are losing their homes to foreclosures, as unemployment rates reached 7.34 percent, which is higher than the national level of 6.1 percent during the third quarter of this year.

With more families losing their homes, the demand for apartment and rental units would follow the same pattern; however, the freeze on construction of additional units is causing an alarming shortage to service these demands.

The upswing of Nevada foreclosures resulted to more displaced families seeking temporary residences in apartment units. This demand for rental options resulted to an increase of 2.6 percent in the north valley, which posted the strongest growth rate.

On the other hand, rental markets in the central/east sections saw a 1.6 percent decline. Rates vary from $769 per unit at the northeast, which posted the lowest, up to $1,014 per unit at the southwest which exhibited the highest rent rates in the valley for the third quarter.

With the financial market in the tight squeeze due to the crisis in foreclosures, the global financial status is still very much uncertain causing investors to hold on to their capital. This resulted to less ventures in the construction of new and additional rental and apartment units. With the growing number of foreclosure properties, the market for rental space would continue to rise in parallel. In Nevada, occupancy rates rose to 94 percent towards the end of September.

This is slightly higher than statistics from last year. The demand continues to increase even if rates are in the upswing. Average rent ranges to $890 per month, which is higher than last year’s figures by $7.

Despite these problems in foreclosures, the increase in rental demands would benefit landlords. With the steady increase in demand, rental prices are expected to stabilize and maintain present levels, providing more stability to the rental market.