The foreclosure epidemic continues to sweep across the United States in a rapid fashion as prices on homes are being forced downward 9.72% as a national average. Fannie Mae offices in Virginia opened a foreclosure call center today, and by 10am, they received over 270 calls. Kexington KY, Denver, CO, Phoenix, AZ, and countless other cities are getting proactively involved in educating these distressed homeowners about their options so they can keep their homes out of foreclosure, or at least delay the foreclosure, so they can get back on their feet.
Bank owned REO's (Real Estate Owned) are currently at 660,000 nationwide, more then triple what they were in January 2007, at 231,000. That is 1 out of 7 home sales being "short", or paying the lender less then what the borrower owes on the property. This falling prices are fueling the foreclosure epidemic as people cannot sell their homes at straight market value, and owe more on it, then it is worth.
There does seem to be some new sales activity in the Midwest at a positive 0.02, however the rest of the country, west, south, and northeast, are still down above 7%, and 13% in the west. A trend that is becoming popular across the country is loss mitigation companies that are contracted out by servicing companies to handle cases, to find alternatives for homeowners to keep their homes. Loan modifications, special forebearances, interest rate reductions, etc, are just some of the options these foreclosure prevention specialists are trained to educate homeowners on. The worst thing that can happen is if you do not contact your lender at all. Legally, a lender can declare a notice of default after 90 days delinquent on a mortgage. Currently, there are homeowners who are 14 months or more delinquent on their home, and still in it, simply because they maintained contact with their lender. I am by no means endorsing ot paying your mortgage, and 14 months is an extremely long time to be in your home, without paying, however the point here is, foreclosure prevention specialists are popping up all over the country to help you keep you home. Call now before it is too late, and save your home from a foreclosure.
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