We will see a new round of foreclosures by Spring of 2009 as option ARMS get recast and monthly mortgage payments skyrocket. With the continued devaluation of real estate, millions of additional homeowners will find themselves upside down. In many cases, their only option will be to walk away from their "so-called" investment.
THERE MAY BE HOPE, HOWEVER. There is a group in Minneapolis who have taken it upon themselves to help at least a few of the families facing this desperate situation:
The Hope Now hotline (888 995-HOPE).
This is a mortgage-counseling phone line backed by lenders and the federal government that currently gets about 4,000 calls a day. Hotline counselors help borrowers negotiate with banks and offer advice on refinancing options. It is yet to be shown that this will have a significant impact, but, at least these homeowners now have an advocate that is there to listen.
Hopefully this can be of assistance to some of your customers as they struggle through these difficult times. If anyone knows of other groups who are coming forward to help these families, please let me know. Thanks!